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Jonathan Yates
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Jonathan Yates is the founder of EarnedMediaUnlimited. He has had thousands of articles appear under his byline in websites and periodicals such Seeking Alpha, The Washington Post, AOL Daily Finance, Foreign Policy, and The Motley Fool, among many others. The views expressed are his own. In his... More
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  • Proposed Change In South Africa Law Shows Superiority Of Canadian Energy Assets...Again! 0 comments
    Sep 13, 2013 7:53 AM | about stocks: APEOF, SOL, XOM, SU

    Following up a recent article of mine in Seeking Alpha and a comment to a news release from Seeking Alpha, the topic of the superiority of Canadian energy assets is worth greater attention.

    My comment was to the Seeking Alpha report about Exxon Mobil (NYSE: XOM) and Royal Dutch Shell (NYSE: RDA-A) opposing a proposed change in the laws of South Africa that would reduce opposition for its oil firm, Sasol Ltd. (NYSE: SOL). The article I wrote for Seeking Alpha was about the appeal of Americas Petrogas (OTCPK:APEOF), a small cap oil and natural gas firm based in Calgary, that just reported results featuring a 75% increase in net revenue and a 70% jump in sales volume.

    For my blog, I just penned an article about the bullish outlook for Suncor Energy (NYSE: SU), a major Canadian oil and natural gas concern that is a significant holding of Warren Buffett. A future article I am preparing for Seeking Alpha (hopefully!) is on Octagon 88 (OTCBB: OCTX), which has soared over 50% in the last month of market action due to a very favorable report on its energy assets in the oil-rich Alberta Province of Canada.

    For investors, Canada offers the best of all possible worlds in the energy sector.

    For national security and political stability, Canada is protected by the United States. As to the importance of this, review the losses of Royal Dutch Shell and other firms in Libya, Nigeria, and similar areas where there is turmoil. What the situation in Syria is doing to oil prices at present is further proof of how imporant political stability is for an energy company...or any business, for that matter!

    Canada is also very pro-energy development and production.

    The country welcomes foreign investment in the natural resources sector. It is large, sparsely populated, and appreciates that foreign capital and other resources are vital for maximizing the potential of its energy sector. That is very admirable as the government is very clean, too (one of ten least corrupt in recent index rating 174 by Transparency International, ahead of the USA).

    It is also willing to "walk the walk" for more energy development and production.

    The most obvious example is The Keystone Pipeline. It is not Canada that is delaying its construction: it is Washington, DC. There is no logical reason for this either, especially with oil over $100 a barrel. On a monthly basis, the United States is exporting over $30 billion in capital to import oil: many jobs could be created from that massive sum if it stayed at home (Canada does export to the US, too).

    Firms operating from or in the Canadian energy sector range from prominent blue chips like Suncor with its market cap of around $55 billion to promising smaller entities like Americas Petrogas and Octagon 88. The proposed changes in South Africa should make investors appreciate the long term stability of the Canadian oil and natural gas industry.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCPK:APEOF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Themes: long-ideas Stocks: APEOF, SOL, XOM, SU
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