Canada has a wealth of natural oil and gas resources. The country’s vast bitumen and shale gas deposits have attracted investment from countries around the world, with state companies in Southeast Asia and China in particular, leading the charge.
Politically stable, Canada’s oil and gas industry is technically advanced, well regulated and has a reputation for contractual reliability. In fact, the country is one of the most stable, dependable and democratic of the world’s top 10 oil and gas producers. This is a distinct competitive advantage given the turmoil in oil producing nations in North Africa and the Middle East.
With increasing long-term energy demand in emerging and developing economies around the world, many state-owned petroleum companies have already invested large amounts of capital in Canada’s oilpatch. That trend will continue and allow capital-intensive oil sands and shale gas projects to move forward.
But how will that investment be viewed by Canadians and the government? Of late, the Canadian government has had a mixed response to large foreign investment deals.
As for Canadians themselves, there remain concerns by some that our natural resources are “for sale.” Could a rise in economic nationalism jeopardize foreign investment in Canada’s oil and gas sector?
With five strong benefits accruing to Canada’s petroleum sector through an influx of global capital — detailed in this report — Canadians should welcome, not fear, increased foreign investment in the oilpatch.
Read our Energy Visions Quarterly to learn more.