World demand for oil is increasing while world reserves are declining. This is a known fact. The current price of oil can certainly confirm this statement. Consensus also agrees that we will never see $25.00 oil again. The logical conclusion from our previous statement is that oil stocks should be a good long-term investment. However, the location of oil companies’ reserves can affect their balance sheet and valuation.

Some of the largest reserves in the world are found in Venezuela, Saudi Arabia, Russia and Canada. Political unrest in Venezuela, unstable and unpredictable government in Russia, and Osama Bin Laden targeting Saudi Arabia leave Canada, namely the Alberta Oil Sands, as the world’s largest and most reliable oil reserves.

Companies including Exxon Mobil Corp., Royal Dutch/Shell Group and Canadian Natural Resources Ltd. are planning to spend billions over the next 10 years to develop Alberta’s unusual oil deposits as demand for crude increases and production declines. of existing reserves. Oil sands production in Alberta may double to 2 million barrels a day by 2013, according to a presentation by Enbridge Inc. earlier this month. Tar sands are deposits of bitumen, heavy oil that must be treated into crude oil for use in refineries to produce gasoline and diesel fuels. The US Department of Energy revised its estimates of global oil resources to include the oil sands with 174 billion barrels of proven reserves that can be recovered using current technology.

With demand for oil and other commodities from China and India increasing due to their growing economies, strong trade relations are being achieved with Canada, a country with rich resources, political stability and neutral military views.

Companies with reserves in the Alberta oil sands look like a great investment for the next decade

There are many companies with reserves in Oil Sands, here are some with strong exposure.

Suncor Energy Inc. SU.tse, Western Oil Sands Inc. WTO.tse and Canadian Oil Sands Trust COS/UN.tse