Peyto Exploration: A Winning Stock For Growing Oil Sands Diluent Demand
- Oil sand bitumen production requires diluent blend in order to meet pipeline flow specifications.
- Growing oil sands production is expected to increase diluent demand by ~50% to 600,000 bpd over the next 4 years.
- Canada imported 150,000 b/d of diluent from the US in 2013.
- Peyto Exploration is excellently positioned as the low cost gas producer in Alberta's Deep Basin to supply growing (and very profitable) diluent demand.
- Peyto's total 12-month return should approach 40%.