Saturday, June 14, 2008

Oil in the Arctic and Ice Road Truckers

Gas prices are going through the roof.

One of the reasons for this is the lack of supply.

However, I was reminded recently after watching the Discovery Series "Ice Road Truckers" that there is a lot of untapped oil in the Arctic Region. Some claim that one quarter of the world's untapped oil and gas reserves lie there.

Aside from investing in integrated oil companies such as Exxon-Mobil (XOM) or Conoco-Philips (COP), investing in oil services and oil exploration companies could be profitable.

There are Oil Services and Exploration Companies such as:
  1. Schlumberger (SLB)
  2. Halliburton (HAL)
  3. Transocean (RIG)
  4. National Oilwell Varco (NOV)
  5. Nabors (NBR)
  6. Ensco International (ESV)
  7. Petroleo Brasileiro (PBR)

Canada Oil Sands

Canada also has the largest Crude Oil reserve, but much of it is in Oil Sands which may be more expensive to extract. But given today's high energy prices, it is worth it.

Canadian Natural Resources (CNQ) and Suncor (SU) might be good plays on this.

Over the long term, Canada itself, which is rich in natural resources, could be a very good country to invest in. The ETF EWC might be a good play to profit from a Canadian boom.

Ice Road Truckers

"Ice Road Truckers" is a History Channel Show (owned by A&E Networks) that features Semi Truckers driving large loads in the Arctic Circle and the Canadian North. During the winter months, the Lakes and Arctic Ocean freezes, allowing truckers to drive above the frozen lake or ocean. The main items they are transporting are either mining equipment or oil equipment. This reminded me that there is a growth area in oil exploration and services in areas such as the Arctic.

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