Previously "must-own" stocks for oil fans, Suncor (SU) and Canadian Natural Resources (CNQ) have...

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Adamantium Comments (4)
 
Wow... something we have known for how many years now?
24 Feb, 12:33 PM Reply Like

Whitehawk Comments (2809)
 
Canadian stocks in general have lagged in performance. In 2010/11, there were large inflows, but since there have been a relative outflow, reflected in share prices, and in part due to commodity disinflation. Not surprisingly, some are calling for Canada to weaken their currency, to follow the other movers in this "war." Canada is a good place to invest given the natural resource treasure. Look long term.

Note the comment on the Barron's article - Canada might consider building a few SOA refineries near their extraction points, or strategically located along shipping/railway/pipeline routes.
24 Feb, 01:04 PM Reply Like

dividend_growth Comments (2749)
 
I disagree.

Costs for developing Canadian oil resources are vastly higher than US shale/tight oil.

If US shale/tight oil sets the marginal cost of production, Canadian producers will become dead meat.

If Canadian oil sand sets the marginal cost of production, they will survive and US producers will make a bundle.

So, the best trade is long US producers and short Canadian ones.
24 Feb, 02:42 PM Reply Like

rsad Comments (3)
 
dividend_growth has his head up his $%#. Shale Oil production is a sham. Who is successfully extracting and at what cost/profit. CNQ has languished as a result of being a pawn in the US/Canada/Special Interest debacle. Even though I think management is overpaid, the company does have a substantial asset base with significant ownership and partners. This stock will either be the target of a merger/takeover or climb in value by 20% before the end of the year. The only time dividend_growth has seen 30% was on his academic report.
24 Feb, 05:09 PM Reply Like