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Archive for the ‘Oil’ Category

The explosion and subsequent fire at Canadian Natural Resources Limited’s (TSE:CNQ) Horizon oil sands operation this week was sensationalized by the Alberta and the Canadian press, but look around the US and international news networks and you will find little if any information about this.  Even CBC tried to make a story out of this.

But does this really come as a surprise to anyone? Before the accident CNRLs Horizon Oil Sands was producing around 90,000 bbl/d, roughly 6% of the surface minable oil sands in the region and about 10% of the countries synthetic crude oil.  Since news of this explosion oil has risen by about 1.2%, a change that many in the Canadian press attributed to this disaster. Is it possible though that oil merely rose because of a leak in the Trans-Alaska Pipeline? Or because Obama is continuing to push offshore drilling reform?

Oil is going up. At the time of writing this article oil is $91.20. While I don’t believe oil will reach $150 by late 2012, I do think we will see strong growth from the energy sector this year. As one of my favorite bloggers, Mitch at BeatingTheIndex, puts it: “oil is on the path of growth for the next decade” and I just so happen to agree.

Today CNRL released a statement indicating its upgrader may work at half capacity by operating two of its four coke drums.

So…did you get in at $40? Even now CNRL (TSE:CNQ) is trading at $42.25, still a bargain in my opinion.  CNRL is a diversified oil company with operations throughout AB and BC as well as strong assets in the North Sea and offshore Africa. I would consider CNRL a strong buy and I would not be surprised to see it topple $50 by the end of the year.

Disclaimer: I do not own shares of CNQ.

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I read alot of financial blogs and I see that many of the bloggers like to have a friendly competition in picking top performing stocks for the year. I’m new to the world of blogging so I certainly don’t expect to be included in the challenge, but I thought that I might make some predictions for my own sake, something to look back on a year from now.

My top stocks for 2011 are as follows:

1. Canadian International Minerals (TSX.V:CIN) – Canadian REE play
2. Powertech Uranium Corp. (TSX.V:PWE) – USA Uranium play
3. Fortune Minerals Ltd. (TSX:FT) – Canadian Gold (and Coal) play
4. Reliable Energy Ltd. (TSX.V:REL)  – Canadian Oil play

Yes these are all small cap stocks. Yes they are in the resources sector. It is my belief that we will experience huge growth in these industries in 2011, specifically in the energy sector. I will expand more on these companies individually over the next week.

Some other bloggers picks to keep an eye on:

Intelligent Speculator
The Wild Investor
Million Dollar Journey
Beating The Index
Dividend Growth Investor

…and many many others that I encourage my readers to explore through the links above.

May it be a prosperous year for us all.

Disclaimer: I own shares in CIN, PWE, FT and REL.

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