Exercise 4-3: Income and Cross Elasticity

North America runs on oil, coal, and natural gas. Although a larger share of our needs will be met through increased use of hydro-electricity, wind, solar, nuclear, and other forms of renewable and alternative energy, fossil fuels will continue to play an important role in our nation’s energy mix in the foreseeable future.
Securing that future means finding a secure supply. And one growing solution is the natural bitumen deposits that make up Canada’s oil sands.
The sheer size of the Canadian oil sands, located primarily in the province of Alberta, has the potential to significantly enhance North America’s energy security by providing a safe and reliable supply of crude oil and petroleum products. Politically stable, Canada has a reputation for technical and contractual reliability as well as high environmental standards. Canada offers abundant supplies of reliable, affordable energy and the requisite delivery and distribution infrastructure.
In today's world there is no substitude for gas and oil in the amounts required. Demand for this this products is inelastic and growing as population numbers rise.

Sourse: http://www.capp.ca/canadaIndustry/oilSands/Energy-Economy/energy/Pages/default.aspx