Cenovus Energy Inc (CVE)

[OilStockReport]

Key investment points in the group include long-term resources availability in Canadian oil sands; technological advances in extracting and producing oil; and an upside to valuation.

While Canadian oil sands contain huge reserves, it’s relatively expensive to extract oil in a process that resembles strip mining. But with oil now expected to trade close to $81 a barrel, oil sands are now more economically viable.

J.P. Morgan acknowledged that one possible risk to the group is lower oil prices.

“Although our near- and long-term oil price modeling assumptions do not call for prices to differ significantly from the current $81/barrel, significant or sustained weakness in the oil price would likely pressure share prices,” Minyard said.

http://www.marketwatch.com/story/jp-morgan-aims-at-canadian-oil-sands-2010-10-25?reflink=seekingalpha&source=sa