As Go the Oil Services, So Go the Tar Sands
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In yesterday’s column, we heard the market’s wildly bullish opinion of the oil services sector. The all-time highs in those who drill, pump, and transport tell us that billions of dollars are flowing into oil service order books.
Today, we look at another sector the market is high on: Canadian tar sands. Our chart shows the past five years in Suncor Energy, one of the largest miners operating in Athabasca. When oil is trading for $60 a barrel, mining the tar sands is a good business. When oil is trading for $80, it’s a great business. And when oil is trading for $120, it’s a money machine.
As one of the institutional investors’ favorite ways to take a position in Canada’s tar sands, Suncor’s stock reflects all of the environmental, political, and economic concerns of Athabasca.
Suncor’s first-quarter cash flow increased 40% from one year ago. Shares have appreciated 480% in the past five years. The bull market in the world’s safest large deposit of crude oil is on!
Source: As Go the Oil Services, So Go the Tar Sands
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Tags: Canadian Tar Sands, Crude Oil, energy, Miners, oil, Oil Sands, Oil Services, SU, Suncor EnergyAbout the Author
Brian Hunt is managing editor of Daily Wealth.
The DailyWealth mission is to show you how to avoid risky investment, and how to avoid what the average investor is doing. We believe that you can make a lot of money and do it safely by simply doing the opposite of what is most popular.