Should Oil Sands Producers Be More Valuable Than Frackers?
A new report from Canada's third-largest bank, Scotiabank, released a report showing the cost competitiveness of bitumen from the oil sands compared to "tight oil" shale plays in both Canada and the United States. The numbers shocked many, showing In Situ oil sands break-even costs below that of the Eagle Ford in Texas and North Dakota's Bakken shale plays.
With break-even prices below those of unconventional plays in the United States, why are producers levered to the oil sands currently trading at cheaper valuations? Investors only need to look at the margin differentiation, and the distance the oil has to travel to market.
Can America take on OPEC?
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour. (That's almost as much as the average American makes in a year!) And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click here to uncover the name of this industry-leading stock, and join Buffett in his quest for a veritable landslide of profits!
This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.
The article Should Oil Sands Producers Be More Valuable Than Frackers? originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool owns shares of EOG Resources. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.