In this paper, a project financial analysis of the operation of a hypothetical tar sands unit is carried out for a range of conditions to determine the oil price required to ensure financial viability of the unit. The paper attempts to answer the question: Is it economically sensible to extract oil from the tar sands using current technology? The conclusion is that such plants should not be built unless there is a reasonable expectation that oil prices will escalate substantially in real terms. The only other possible justification would be on the grounds of national strategic importance.