Alberta Oil Sands Stocks Canada
Oil sands, also known as tar sands, crude bitumen or bituminous sand, are a type of unconventional oil resource. Oil sands extraction and treatment produce synthetic crude oil and bitumen for operation. According to the WEC, oil sands with a gravity of fewer than 10 degrees API and a reservoir viscosity of more than 10,000 centimetres are among the world’s oil reserves. In addition, new technologies allow profitable extraction and processing with high oil prices.
Upstream companies are involved in exploring and producing E & P (crude oil and natural gas), which includes searching for oil in the ground and drilling wells to gain access. In the case of such Canadian oil sands companies, the extraction of crude bitumen (a dense, viscous form of crude oil) involves an in the situ recovery process, in which vapour and chemicals are injected into the soil to separate the bitumen from the sand and then pump it to the surface. This method is expensive compared to traditional good extraction, but it can raise the oil price for producers of oil sands or break it down, which can be much higher than traditional producers.
Suncor Energy is involved in developing and upgrading oil sands in the Athabasca Basin of Alberta, offshore oil and gas production off the east coast of Canada, and operations in Britain, Norway, Libya, and Syria. The refining and marketing segment transports crude oil and refines and markets petroleum and petrochemical products in Canada. In addition, Suncor refines crude oil products and sells them under the Petro-Canada brand at retail outlets throughout the country.
It holds a 25 percent stake in Syncrude, one of the world’s largest oil sands companies. Canadian Oil Sands Limited is a Canadian company that generates revenue from its oil sands investments through the SynCrude joint venture. The Syncrude joint venture operates oil sands facilities that extract crude oil from tar sands deposits in the Athabasca region in northern Alberta, Canada.
Suncor Energy is one of Canada’s leading integrated oil and gas companies. Its assets include its Montney operations in northeastern British Columbia, Pembina, and Cardium, Alberta. Imperial Oil (IMO.TO) is an integrated company engaged in the exploration, production, affinage, transportation and sale of crude oil and natural gas.
The Investing News Network has compiled the top five Canadian oil and gas stock companies using TradingView stock screeners. The shares on the list have a dividend yield of over 3 percent and a leverage ratio (total equity divided by total liabilities) of 0.71 or less.
That’s a nice mix compared to much of the energy industry’s stock market. Moreover, the energy sector offers investors attractive dividend payouts. Finally, do not forget that rating agencies prefer oil and gas to vertically integrated companies, which value them more financially.
Suncor operates a manufacturing business as well as exploration and production operations. As a result, it can spend enough to sustain production and maintain its dividend, even if oil prices fall below $45 a barrel as measured by West Texas Intermediate.
The company sees annual operating profit growth of 5% through 2023, driven by a $1.5 billion program to reduce operating costs and efficiency. Little says the company is focused on operating costs to reduce the cost of producing a barrel of oil sands crude in its main U.S. plant from $20 a barrel in 2008 to $36 with the goal of $15 a barrel. Analysts say the company is spending 30% to 40% of its annual cash flows to keep its oil production.
“We expect that Canadian supply is to increase by 2030 to 6.3 million barrels of oil per day and increase over the next decade by one million barrels per day,” he said. He sees undervalued stocks, including a broad ditch for Enbridge and a narrow ditch at TC Energy and Canadian Natural Resources.
At the front of the integrated value chain, Canadian Natural Resources is not particularly impressive. However, Canada is the largest producer of natural gas and operates in the UK sector in the North Sea and off the coasts of Ivory Coast and Gabon. This oil orientation is a plus at a time when many US rivals are exposed to a weak natural gas market.
When oil prices rise, the problems with Canada’s pipeline resurface. Refineries on the U.S. Gulf Coast are also struggling with declining imports from Venezuela and Mexico, a trend that is expected to continue. However, the oil sands industry has proved resilient, with many existing projects generating free cash flow at oil prices per barrel (WTI) at West Texas Intermediate (WTI) prices.
However, the bizarre situation will not last long as Canadian oil and gas stocks have reached an all-time low like many of their global counterparts. Moreover, Canadian valuations have fallen due to deep and long-standing problems transporting crude from the oil-rich landlocked province of Alberta and the port of British Columbia to lucrative East Asian markets and logistical and capacity problems that will take longer to resolve. As a result, a hostile $32.9 billion takeover bid for Suncor Energy followed in March and April 2015.
They recovered in 2009 as the economy recovered, but a surge in US shale production triggered a crash in 2014. Only recently has a semblance of normality returned to global markets.
A coalition of leading Canadian oil sands producers has announced cooperation to achieve net-zero greenhouse gas emissions from their operations by 2050, even as they face challenges in meeting the country’s energy transition goals. The agreement follows the introduction by the governments of Canada and Alberta of a substantial package of assistance for emissions reduction and infrastructure projects.