O Canada! U.S. Oil Gushes; Refiners Want Canadian

Bentek Energy's annual Benposium is the most data-rich energy conference there is. This year drew an edge-of-their-seats crowd after a year ago, during which the oil world turned on a drillbit.

At the conference, Bentek's senior energy analyst, Chris Micsak, shared with the Fool's Tom Jacobs a wrinkle in the North American crude oil gusher. The oil companies with investments already in the Bakken, Permian Basin, and Eagle Ford -- the world-class plays that keep on giving -- can make money as low as $45 to $50 barrel. That's half of today's prices and serious ka-ching. So the light, sweet crude we're swimming in may be moving the U.S. toward oil independence in that grade within five years.

But it's not the whole story. The catch is that Gulf Coast refiners have retrofitted for where their money is: making diesel and jet fuel from heavy crude. Yes, we get that from Saudi Arabia, but our friends to the north have a lot to offer us and at lower cost. Four stocks are the leaders in Canada's oil sands. Find out what they are by watching the following video.

If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." For free access to this special report, simply click here now.

 


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  • Report this Comment On May 31, 2013, at 8:34 AM, EllenBrandtPhD wrote:

    You wouldn't know it from the Loonie lately!

    I agree with much of your thesis, but the Loonie should be getting stronger on it, not weaker.

    The Great Loonie Short, started by the Evil One, Toronto Dominion, has been tied into the Yen Short of the Ages - also getting very long in the tooth.

    And not sure why this story is being posted by Yahoo - in its infinte non-wisdom - on the news summaries of the Brent companies.

    Seasonally and otherwise, we all know the Brent spread over WTI should be getting larger now, not smaller. The Smart Money has reflected that in its Brent Long bets the past three weeks. Some years, Brent gets its rally in late June. But this year, most think it is going to be several weeks earlier.

  • Report this Comment On May 31, 2013, at 3:21 PM, TMFTomJacobs wrote:

    Ellen, thanks for replying and taking the time to share your thoughtfulness! We have some control over the Yahoo syndication but not much.

    All I know is that the refiners want heavy, and other than Saudi Arabia, Canada's got it. I wanted to get into the Keystone, but it would have taken longer and also, it would take so long to be built you might as well use rail.

    Appreciate your viewing and replying! Best, Tom

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