The Rising Influence of Rising Affluence

[DewDiligence]

Oilsands update—Barron’s likes SU, CNQ, and IMO:

http://online.barrons.com/articles/12-ways-to-play-the-energy-slump-1414217234

Canadian oils…beckon, notably Suncor Energy (SU), Canadian Natural Resources (CNQ), and Imperial Oil (IMO). They…have long reserve lives, thanks to access to huge oil-sands deposits in Alberta, and that removes much of the exploration risk that afflicts their international brethren.

One investor calls the Canadian majors “no brainers,” given their multi-decade reserves in a politically safe country. Suncor…has gotten more shareholder-friendly; its dividend yield now is 3%. Its cash costs in the oil sands are low—about $30 per barrel.

The north-of-the-border majors benefit from the weak Canadian dollar, now about 89 U.S. cents, because their costs are skewed to their home currency, while their revenues are linked to the greenback.

I’ve steered clear of this group of companies because of the risk of higher taxes (#msg-59578616), but that concern might no longer be valid. (Comments?)

IMO (Imperial Oil) is a special case insofar as it’s a majority-owned subsidiary of XOM, and I generally don’t like being a minority shareholder. #msg-62561185 has a Barron’s feature on IMO that’s somewhat dated.