The pure insanity of using nuclear weapons to blow holes in the Earth in order to produce oil nicely captures everything that is wrong with our current culture. I can see this being done before meaningful efforts at curbing demand begin i.e. -- 'Nuke that grass, I want gas!'
I could not have said it better myself.

I think we're going to see every crazy friggin' scheme possible tried, anything, anything at all, for oil.

The AEC proposed another version of this nuttery way back in the early 1970s, (IIRC), to boost the rock flow of conventional oil reserves.

On the Western Slope, many of these people are "downwinders" from Nevada N-Tests; even given the gung-ho attitude of Westerners toward many things, they are NOT going to embrace something like this.

Exactly. Too many cowbows' kids have had their thyroid glands removed to make them want to go with this option.

Also, who would want to buy radioactive gasoline?

the same people who think you can handle pure uranium and plutomium with your bare hands?