I believe the conflict in Iraq is just getting started and could quickly spread to a long-lasting regional conflict. If so, crude oil prices will remain above $100/bbl and could go a lot higher if the conflict disrupts any Middle East oil supply.
Therefore the Canadian Oil Sands companies deserve a look. Below are comments from RBC Capital Markets report.
Capitalizing on the oil sands – 2014 edition
In our view, capital investment in the oil sands will remain strong through the end of the
decade given significant backing from the most financially sound companies operating in
the sector. The majority of growth will remain in-situ focused due to robust economics
and a lower degree of financial risk and environmental impact relative to mining
development.
RBC favours well financed growth companies with proven assets and project execution.
The preferred oil sands companies in our coverage are Canadian Natural Resources,
Cenovus Energy, MEG Energy and Suncor Energy.
Canadian Oil Sands Companies
Canadian Oil Sands Companies
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group