Is American oil ethical oil?

Of course it is, when compared to OPEC oil.

We actually have stricter environmental policies in Canada, especially in our oilsands, than they do in the U.S. But when compared to OPEC producers, American oil producers are still much more ethical. And remember the four yardsticks for ethical oil:

1. Environmental responsibility;

2. Peace;

3. Treatment of workers; and

4. Human rights.

You can pretty much count the world's ethical oil producers on one hand's worth of fingers. Trouble is, producers like the UK and Norway have small reserves and are running out, and America can only produce a fraction of its own needs.

Which is why Canada is so important -- we have more oil than any other country except the terrorist state Saudi Arabia.

So the arguments in my book, Ethical Oil, work for the U.S. vs. OPEC comparison, just as they do for the Canada vs. OPEC comparison.

I mention this because President Barack Obama is refusing to issue any new permits for offshore oil drilling in the Gulf of Mexico, despite a court order overturning his ban.

Forget about the economic losses and job losses here (unless you're an American, wondering why the hell the president is doing his best to keep unemployment near 10%). The paradoxical point is environmental: by banning U.S. companies from drilling for oil offshore, in the name of environmentalism, Obama is shifting business to Mexican companies that drill in the Gulf of Mexico, too.

Does anyone really believe that Mexico has higher environmental standards than the U.S. does?

Pemex, the massive Mexican oil company, is owned by the Mexican government. So Pemex oil spills aren't met with lawsuits and penalties like, say, the Exxon Valdez or the BP rig. They're handled quietly and without a fuss. Check this out if you doubt me.

Here's what I had to say about the subject on John Stossel's show, on Fox Business News this weekend. (Scroll ahead ten minutes.)