Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Thailand Joins Asian Rush For Canadian Oil Sands

Commodities / Crude Oil Nov 29, 2010 - 05:10 AM GMT

By: Money_Morning

Commodities

Best Financial Markets Analysis ArticleDon Miller writes: Thailand last week joined the crush of Asian countries rushing to acquire a stake in Canada's giant oil sands projects when its PTT Exploration & Production Public Co. Ltd. (OTC ADR: PEXNY) agreed to buy 40% of Statoil ASA's (NYSE ADR: STO) Canadian oil sands project for $2.3 billion.

PTTEP, the exploration and production unit of state-owned PTT PCL, is making Thailand's first foray into Canada's oil sands, the largest source of crude oil outside the Middle East.


Norway's Statoil will keep majority ownership and remain the primary operator in the Kai Kos Dehseh project in northern Alberta, which it bought in 2007, according to the deal announced on Tuesday.

Asian companies participating in oil sands projects now prefer to enter partnerships in the projects, leaving complicated field operations to other companies, according to Dr. Kent Moors, a consultant and global energy-sector insider who is also the founder and editor of The Energy Inner Circle, the newest Money Map Press advisory service.

"Several Chinese and other Asian companies have already farmed-in to projects. It is best for them to take a project interest, thereby controlling a percentage of the extraction, but not be the operating company [in the] partnership," Dr. Moors said in an e-mail interview with Money Morning.

Asian state oil firms, led by China, have been scrambling to acquire oil sands projects, spending billions to fuel their booming economies.

The most notable recent Asian entries into Canada's oil sands include:

•China Petroleum & Chemical Corp. (Sinopec) (NYSE ADR: SNP), China's largest oil refiner and second-biggest oil producer, agreed in April to pay ConocoPhillips (NYSE: COP) $4.65 billion to purchase a 9.03% stake in Syncrude Canada Ltd, the largest oil sands project.
•Penn West Energy Trust (NYSE: PWE) in May sold China Investment Corp., the government's giant investment fund, a 45% share of oil sands properties near Peace River, Alberta, for $801 million.
•In December 2009, the Canadian government gave formal approval for a PetroChina Co. Ltd. (NYSE ADR: PTR) deal to buy a 60% stake in two undeveloped oil sands properties held by Athabasca Oil Sands Corp. that could eventually produce as much as 500,000 barrels per day.
•Korea National Oil Corp. bought Newmont Mining Corp's (NYSE: NEM) BlackGold oil sands property for $270 million in July 2006.
•China National Offshore Oil Corp. (CNOOC) (NYSE ADR: CEO), China's giant offshore oil developer, in 2005 paid privately held MEG Energy Ltd $122 million for a 16.7% partnership stake to develop an oil sands project in northern Alberta that could eventually pump up to 210,000 bpd.

With oil prices now averaging more than $80 a barrel, the Asian oil sands rush is simply a reaction to market conditions, according to Dr. Moors.

"All oil sands development in Alberta is economically viable at current prices," Dr. Moors said. "An average per barrel price of $70-$72 is required to develop new fields, but current fields can be run profitably at $52-$55. Plus, the tax structure is now better in Alberta than the U.S. for operating companies."

[On Wednesday, crude oil for January delivery advanced $2.61 a barrel, or 3.2%, to close at $83.86 on the New York Mercantile Exchange - its highest price in more than a week, MarketWatch.com reported.]

PTTEP's deal represents the largest ever offshore investment by a Thai company, blowing past the $1.9 billion buyout of Australia's Centennial Coal by Banpu Public Co. Ltd. (PINK: BANPU) earlier this year, according to Thomson Reuters data.

"We view them as a new player with a fresh set of ideas," Statoil Canada President Lars Christian Bacher told Reuters in an interview. "Technology development has always been part of Statoil's DNA and both companies are on the same page when it comes to driving technology development."

"The project will have initial production at 10,000 bpd in early 2011. But the company plans to ramp up output to more than 300,000 bpd," Supanna Suwankird, analyst at Thanachart Securities in Bangkok, told Reuters.

PTTEP will put up $1.5 billion in cash and plans to finance the deal with $800 million in bonds and $500 million in loans from four foreign banks, Chief Executive Anon Sirisaengtaksin told reporters. The company competes with big Chinese oil firms such as CNOOC and Sinopec and is one Asia's Top 10 exploration firms.

Investors can expect to see more Asian companies looking to Canada's oil sands for future investment opportunities, according to Dr. Moors.

"With the declining production from conventional crude fields in Canada and the U.S. unconventional (primarily oil sands, bitumen, heavy oil and a bit of oil shale) has to step up and fill demand; otherwise it spells more dependence on imports," Dr. Moors wrote. "If Washington has to choose between Canadian oil sands or more imports, Canada wins. We will see more Asian interest."

Dr. Moors also offered a play for investors who want to get in on the oil sands rush.

"The most direct way to play it is the Guggenheim Canadian Energy Income Fund (NYSE: ENY), an exchange-traded fund (ETF) that focuses on the Canadian oil sands," said Dr. Moors, noting that the fund is already part of the portfolio of another of his trading services, the Energy Advantage.

Action to Take: If you - like Asia - see the profit potential of Canada's oil sands, respected global-energy-sector insider Dr. Kent Moors has an investment recommendation for you to consider. The most direct way to play this trend is the Guggenheim Canadian Energy Income Fund (NYSE: ENY), an exchange-traded fund (ETF) that focuses on the Canadian oil sands. This isn't just talk - it's already in the portfolio ofanother of his trading services, the Energy Advantage.

[Editor's Note: Let's face it, energy is where it's at. Now and for the future. Supplies of such fossil-fuel mainstays as coal and crude oil are finite, and are on the decline. And the emergence of such new-economy powerhouses as China, India, Korea and others will ramp up demand - thereby accelerating the decline of global fossil-fuel supplies.

Now, there are ways to better utilize the fossil-fuel supplies that remain. This includes such substitutes as tar-sands crude. There are additives. And there are new, enhancing technologies.

There are also alternatives. Hybrid vehicles. Wind-turbine power. Fuel cells. New and safer commercial nuclear reactors.

There hasn't been a time this exciting for energy-sector investors since the Drake Well was drilled in Titusville, Pa., in 1859.

It's exciting. But it's also confusion. After all, how's the typical retail investor to know where to put his or her money?

That's where Dr. Kent Moors enters the picture. Dr. Moors is one of the best-connected energy-sector insiders in the world today. In fact, Money Morning Executive Editor William Patalon III interviewed Dr. Moors for this story just as the consultant was boarding an airplane for an overseas meeting (we can't say where he was flying to).

Dr. Moors knows the players, knows the governments, knows the technologies - and knows precisely when each profit opportunity will offer investors the maximum possible upside.

The "New Energy Sector" is wild jungle, with predators, hunters and traps galore. But there are riches to be found.

And with the right guide, you'll not only come out on the other side of this energy-sector safari alive ... you'll bring a hefty share of the newfound wealth out, too.

Dr. Kent Moors is that "right guide." To find out how to work with him through his new advisory service, "The Energy Inner Circle," please click here.]

Source : http://moneymorning.com/2010/11/29/...

Money Morning/The Money Map Report

©2010 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules