Canadian Capitalist

The Globe and Mail newspaper has two stories today on Alberta’s oil sands available here and here. Oil sands are deposits in which thick viscous oil called bitumen is mixed with sand. Alberta has huge oil sand deposits that some estimate to contain the largest oil reserves in the world. Various technologies are used to extract bitumen from oil sands and then bitumen is upgraded into synthetic crude oil.

Extracting syncrude from oil sands is capital and energy intensive process. At current high oil prices, oil sands operations are very profitable. America’s search for energy security is also generating a lot of interest in Alberta oil sands.

Canadian majors like Suncor Energy (TSX, NYSE: SU), Imperial Oil (TSX, AMEX: IMO), Shell Canada (TSX: SHC), Petro-Canada (TSX: PCA, NYSE: PCZ), Canadian Natural (TSX, NYSE: CNQ), Nexen (TSX, NYSE: NXY), Husky Energy (TSX: HSE) all have planned or operational interests in oil sands. Canadian Oil Sands Trust (TSX: COS.UN) and Western Oil Sands (TSX: WTO) are oil sands pure plays.

Full disclosure: I own shares in Canadian Natural Resources (CNQ).

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