Canada is one of the world's five largest energy producers and is the principal source of U.S. energy imports. Canada's unconventional oil sands are a significant contributor to the recent and expected growth in the world's liquid fuel supply and comprise the vast majority of the country's proven oil reserves, which rank third globally. Canada will find a ready market for its energy reserves in the U.S. and Asia. Expect LNG export terminals on its Pacific Coasts and continued significant growth in oil sands production, which will be exported to the U.S. and eventually to Asia once additional pipelines to the western coast are constructed. As a result, any undervalued Canadian oil and gas company holding valuable acreage and significant reserves appear to be in play. In short, the Canadian oil and gas sector is on fire.
Investors looking to profit from Canada's resource wealth should consider investing in oil sands producer Suncor (SU). Warren Buffet and Boone Pickens have recently bought large stakes in SU - the largest oil sands producer that also owns integrated refinery assets. Canadian Natural Resources (CNQ) and Cenovus (CVE) also merit consideration. Smaller Canadian companies that could be takeover targets include Enerplus (ERF) and Yoho Resources (YOHOF.PK). Yoho has a significant stake in the sweet-spot of the Kaybob within the Duvernay shale and is surrounded by acreage owned by Chevron and Exxon after their recent acquisitions in the play.
In addition to the companies mentioned in this article, there are a number of other small and medium sized Canadian E&P companies operating in the Montney, Duvernay, and Canol plays that could reward investors willing to do some research and invest prior to reading a deal headline.