Canada’s Partnership with the Middle East Strengthened

energy in UAE

The trading relationship with Canada and the UAE has been a complex one over the years but recently there have been significant signs that their trading ties will continue to flourish in 2015 and beyond. With Canada recognizing the UAE as a priority market, this particular marketplace has become one of the biggest export markets included in Canada’s ‘Global Markets Action Plan’.

In an interview with oil and gas magazine Pipeline they spoke with Canada’s ambassador to the UAE, Arif Z. Lalani about the current trade relationship between the two countries. With Lalani documenting that the partnership between … Continue Reading

Oil and Gas Covered Call ETF List

covered call etf

Are you thinking of adding exposure to the energy sector through a covered call oil and gas ETF? Covered call writing is an investment strategy that has been around for a long time. It is designed to generate income from a stock by selling a call option against it. You are essentially selling the right to buy the stock at a set price in the future.

For example, if you own 1,000 shares of XYZ Company bought at $10 per share, you can write (sell) a call option contract on those 1,000 shares you own at $12 a share … Continue Reading

Investing in Drilling Companies

drilling rig akita

When you’re thinking of investing in oilfield services stocks the first segment that comes to mind is that of drilling companies. Buying stocks of fracking companies and drilling companies pretty much offer a lower risk exposure to the energy sector compared to oil and gas producers. Drilling companies operate a fleet of drilling rigs used to punch holes into conventional reservoirs or tight formations that allow the extraction of oil or natural gas.

Many of Canada’s major drilling companies have a history of growth, both internally and through strategic acquisitions. Every year more than 11,000 wells are drilled and completed … Continue Reading

Investing in Fracking Companies

trican fracking

The onset of horizontal drilling and multi-stage fracing has been a major driver of unconventional resource development. Fracking is a technique used to release oil and gas from reservoir rock formations by sending water and sand down a well at ultra-high pressure. The pressurized fluid fractures the formation rock creating pathways for trapped oil and gas to get to the well.

The fracking companies have become a large if not the largest part of the oilfield services sector. The shale revolution which started a few years ago has seen the horizontal rig count climb to record levels; more than … Continue Reading

Canadian Dividend Stocks: Senior Oil and Gas Producers

senior oil and gas dividend stocks

We are looking for senior Canadian dividend paying oil and gas companies with production in excess of 100,000 boed. Bigger is not always better because it implies low or no growth in production. However, the senior group has a few advantages compared to intermediate energy companies:

Oil Sands Exposure

The list below includes several stocks which offer a meaningful exposure to Canada’s oil sands. If you’re looking for oil sands companies to invest in, be sure to investigate Suncor Energy, Cenovus, Canadian Natural and Canadian Oil Sands. Suncor for example has more than 25 billion barrels of oil … Continue Reading

Canadian Dividend Paying Bakken Oil Stocks

williston basin map

The Bakken formation stretches over 25,000 square miles beneath North Dakota, Montana, Saskatchewan, and Manitoba. According to Continental Resources, the Bakken/Upper Three Forks formations hold an estimated 577 billion barrels of original oil in place. That means a 3.5% recovery factor translates into 20 billion barrels of recoverable light oil. Thanks to Bakken shale oil, North Dakota is on track to become the second highest producing oil state in the US after Texas.

The Bakken formation holds billions of barrels of recoverable light oil.

We are looking for Canadian dividend paying oil and gas companies that derive a substantial percentage … Continue Reading

Oilfield Services Companies with Fluid Handling Solutions

EcoPond strad

Hydraulic fracturing, also known as fraccing, has revolutionized the oil and gas industry. The process consists of freeing oil and gas from shale rock deposits by injecting water combined with additives under high pressure into the ground.  A horizontal well is basically drilled into a geological formation and completed by multi-stage fracturing (fracking) in order to crack open the shale rocks.

This revolution gave birth to a multi-billion dollar market segment in oilfield services for fluid handling and treatment.

Fracking a well involves anywhere from 2 to 6 million gallons water. Prior to completing a well you need to transport … Continue Reading