Is Now the Time to Invest in Canadian Oil Sands?
Some have said that investing in the Canadian oil sands now is similar to being able to invest in the oil from Saudi Arabia back in the 1940’s. While no one knew a lot about that oil reserve back then, or just how profitable it would become, the same can be said about the oil sands located in Alberta Canada. Under the earth’s surface here, you will find a wealth of valuable investments to be made. The fact is, there are millions of barrels of crude oil trapped under the ground, much of which can be used to feed the ever-expanding demand for oil that continues to drive inflation throughout the world.
The question is, though, is now the right time to get into the Canadian oil sands investment business? Since most people cannot buy into the companies directly or purchase and get them started on their own, you can invest in the trading of the producing companies, some of which are the best investments you will find. Canadian Oil Sands or COSWF, is one of the best routes to take for a number of reasons.
One reason for this is due in part to the fact that the operations are underway and the increasing oil costs are helping to make the oil sands much more profitable than they were just a few years ago. When the companies first got started, the costs of developing not only the plants for extraction, and the means of extraction (which is highly costly in and of itself) but the building of refineries which would need to convert the bitumen product extracted from the earth into conventional crude oil and then finally into usable product, the costs were high. In 2003, the COSWF did not make a profit. In 2007, it was able to secure a profit of US $1.3 billion in operating income.
What’s more, the development of the Canadian oil sands region continues to increase, just as demand does. It is projected that the oil sands projects will raise to 3 to 4 million barrels per year removed. This will feed into the world, which is craving oil. Huge consumer markets are just getting started. While demand in the United States is as strong as ever, markets like China and India are just taking off, and their demand for oil has grown to a proportion that has not allowed Saudi Arabia to keep up.
The bottom line here is that now is the ideal time to get into the process of investing the Canadian oil sands. As of Friday, May 10th, Canadian Oil Sands added 41 cents, up to US $49.67. Most investors see this as an ideal tool for investments well into the future.
Investing Options in Canadian Oil Sands and More
Investing in oil sounds like an ideal situation if you are looking for an opportunity, but avoid investments in the Middle East or otherwise outside the North American continent. You can do this because one of the largest and richest supplies of oil is located in
Just next door is the
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For example, companies that drill wells that go over 2,000 meters deep will receive incentives. Some $1 million will be offset royalties (or up to 12 months of royalties will be offset.) This program will not come into play until 2009. What is unique about that incentive is that any company can come in and do the drilling, and there is no hold back on these breaks even if there is no success found in the drilling process.