Feb 27, 2012

Posted by in Commodities | 0 Comments

The Rise Of Canadian Oil Stocks

Canadian Oil StocksInvestors have become much more interested in Canadian oil stocks due to the recent rise in oil prices around the globe.  There are numerous oil companies functioning in Canada. The majority of the production and refining, however, is done by about 20 large companies.

The increased interest is due not only to the high price of oil but also to the availability of oil sands in this part of the world. Just a few years ago, exploiting these reserves was not economically feasible. High prices have made the oil from these regions economically competitive and have placed the companies working there in the spotlight. In fact, profits were down 90% in 2009 due to the crisis. The skyrocketing price of oil enabled these companies to attain more than $8 billion in profits during 2010.

Heavy Oil and Canadian Oil Stocks

The predominance of heavy oil in the oil reserves of Canada has been to blame for this region lagging behind other areas of the world in oil profits. This oil produces less usable oil in each barrel and is harder to refine. Other regions of the world, such as West Texas and the Middle East, tend to produce a lighter crude oil which converts more easily into gas and other products.

Oil extraction technologies have also improved in the last few years and bolstered the prices of Canadian oil stocks. In 2010, a Japanese team discovered how to process the oil at a quicker rate. Interest in improved technologies has increased among all Canadian oil and gas companies.

Some Popular Canadian Oil Stocks

If you are interested in Canadian oil stocks, here are some examples. They represent a wide variety of the oil companies in Canada. All of them have seen revenue increases in the last year. That is generally a good sign which encourages investment.
•    Suncor has a market capitalization or more than $45 billion USD. They have proven reserves of more than seven billion barrels.
•    Canadian Natural Resources experienced a $14 billion rise in revenue in 2011. Their market capitalization stands at more than $40 billion.
•    Imperial Oil is backed by proven reserves of more than two billion barrels. Their profit in 2011 was more than two billion Canadian dollars.
•    Cenovus Energy has nearly two billion barrels in oil reserves. Their profit in 2011 was nearly one billion dollars Canadian. They are another leader among Canadian oil stocks.

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