Background
The Canadian oil sands are an often misunderstood and thus unappreciated part of the global collection of hydrocarbon resources. (The 'Rodney Dangerfield' of the oil patch, you might say). As traditional sources deplete, though, and as new supplies become more difficult to secure, the oil sands has an increasing role to play in satisfying global demand for oil.
The oil sands are in a stable country, with close proximity to the US, and increasingly with hydrocarbons, as with real estate, it's about location, location, location!
The Opportunity
The resource is estimated as high as 2 trillion barrels of bitumen in place, and recoverable oil is competitive with Saudi reserves, with little or no exploration costs and no decline. The oil sands, also called 'tar sands' are largely unexploited. Investment in the oil sands and related infrastructure through 2012 will exceed $60bn and are the equivalent of several mid-sized suspension bridges or several large airports being built together at the same time. The investment is needed to extract the oil, which is mixed with sand. There are several operation types: surface mining, and extraction, which gets into a variety of SAGD technologies and more innovative technologies now coming online.
Economists say that all wealth creation is derived from investments that increase productivity. I think the oil sands increases productivity as it monetizes a resource that would be uneconomic otherwise. The appreciating price of oil has helped spur this development, as has the concept of 'Peak Oil'.
The objective of this discussion
Lets uncover the gems of the oil sands, the producers, the service companies, the mining companies and the pipelines. There will be trading opportunities and long-term investment opportunities as the oil sands production increases.
The oil sands aren't without risk. Here are a few:
1. The oil sands have been difficult and expensive to extract oil from.
2. Labor is tight in the area.
3. Canada signed the Kyoto agreement so emissions will become an issue as production increases.
4. Amid high oil, and the stronger Loonie, manufacturing in Eastern Canada has suffered, and a power shift (to the West) has taken place with the election of the Harper gov't. Ottawa, the national gov't, may try to grab some of this wealth from the Province of Alberta.
5. High natural gas costs
Lets profit from this huge development.
Guidelines
Try to be nice to each other folks-and I'm guilty of messing up as well. Let me know. This discussion is moderated because some posters have been disrespectful of others when I have asked them to take their OT discussion offline, so the thread gets clogged with OT posts.
I am not a professional fund manager, I am not paid to promote these companies and I do not have an engineering background. Expect mistakes and do your own Due Diligence.
Organization
In addition to the links posted here for research, I set up a Yahoo Group for the sole purpose of posting research files and other files that SI doesn't allow. Visit the group and I'll sign you up:
groups.yahoo.com
For more information visit these links:
The main website, with lease maps and other info
www.oilsands.cc
Recent post on EV/reserves ranking:
Message 21974059
Other sites:
Raymond James Oil Sands Research:
raymondjames.ca
oilsandsdiscovery.com
energy.gov.ab.ca
Oil Sands Technology Road Map (Dec 03)
acr-alberta.com
Read this extensive document put together by Canada's National Energy Board
Canada's Oil Sands: Opportunities and Challenges to 2015
NEB report has been updated:
neb-one.gc.ca
Oil Sands blog:
theoildrum.com
Energy Crisis (great analysis, graphs)
wtrg.com
and some of the project sites:
www.longlake.ca
www.albianoilsands.com
syncrude.com
Private companies:
heartlandupgrader.com
synenco.com
northwestupgrading.com
Some of the players include:
Pure-plays in Production
COS.UN (COSWF.PK)
OST.UN (OSDSF.PK)
WTO.TO (WTOIF.PK)
SU.TO (SU)
Plays with a technical angle, in construction:
OPC.TO (OPCDF.PK) Note: ORA (NYSE) owns shares, NXY is the JV partner
PBG.TO (PBEGF.PK)
Juniors getting started
UTS.TO (UEYCF.PK)
CLL.TO (CLLZF.PK)
BQI (formerly CWPC.OB)
SYN.TO (SYEYF.PK)
NPE.V
FTR.V
AOS.V
Majors with oil sands exposure
CNQ.TO (CNQ)
COP
CVX
PCA.TO (PCZ)
IMO.TO (IMO)
NXY.TO (NXY)
SHC.TO (SC)
ECA.TO (ECA)
HSE.TO (HUSKF.PK)
DVN
TLM.TO (TLM)
TOT
Other companies with oil sands exposure
POU.TO (PRMRF.PK)
ERF.UN (ERF)
BCF.V
NEM
HAO.V
GPOR
POE.V
SOIGF.OB
SRGG.OB (Heavy oil)
DWOG.PK (Heavy oil)
POGI.OB
PTCH.OB
WR.V
PBT.V
MSEV.OB
PWT.UN
BTE.UN (Heavy oil)
CWQ.V (possible, depending on deal with Metis)
STP.V
SOPO
PRVB.OB
GNNO
ELE.V
NOG.V
US Oil Sands
WNWG.OB
NTAH.PK
KDKN.OB
OSGL.PK
MGWSF.BB
Pipelines
PIF.UN (PMBIF.PK)
IPL.UN (IPPLF.PK)
TPL.UN (XXTSP.PK)
TRP.TO (TRP)
ENB.TO (ENB)
TER.TO (TERFF.PK)
Service companies
NYSE:NOA (oil sands contractor)
MTL.TO (MNTZF.PK)
POS.TO
EIS.UN (EISFF.PK)
IST.TO
SCL-SVA.TO (SAWLF.PK)
CFT.TO, CFK
PHX.UN (PHXHF.PK)
PES.UN (PKGFF.PK)
WJX.UN
CET.UN
KEY.UN (CO2 partnership with Ferus Gas)
PD.TO (PDS)
Mining plays
BMD.V (BMD)
TIC.V (TITUF.PK)
ALTI
Construction/Infrastructure
JEC
ARE.TO
IPS.TO (IPS)
TS
GHM
CUQ.TO
Equipment
JOYG
BUCY
CAT
FTT.TO
TEX
Heavy Oil Upgrading
WSCE.OB (Also owns 170,000 shares Synenco)
GNO.V (GNOLF)
RVTI
IE.TO (IVAN)
Advanced Recovery
WEE.V
Environmental
BDZ.V
Investment vehicles with oil sands focus:
CLO.TO (oil sands ETF)
RTU.UN (large oil sands holdings)
Private Companies
Grizzly Oil Sands
OSUM (Oil sands underground mining)
Venture Capital
arcfinancial.com
Associations
capp.ca
This report has future oil sands production predictions:
capp.ca
Monthly Crude Prices (Heavy, Light,)
petro-canada.ca
(More will be added as we surface them)
OK, lets make some money.
Notice: I hope the information on investments including stocks are informative and educational, but their accuracy cannot be verified. Please note that I, and the participants on this thread, are not professional financial advisors. All contributions are for informational and educational purposes only. Consult your professional financial advisor before undertaking any investment. |
