There are already some solutions in the offing, including the Keystone XL pipeline, which aims to connect Alberta to Nebraska. Despite gaining support from environmental groups, the project is making headway in highlighting its potential economic benefits to policymakers.
Cenovus Energy Inc (TSE:CVE) is another Canadian oil major that has fallen to bad times. With a large number of oil sands projects between Foster Creek, Cristina Lake, and Narrows Lake, the company is already one of the largest in the space. However, depressed Western Canada Select prices caused a 14 percent drop in Cenovus Energy Inc (TSE:CVE)’s revenue in the latest quarter, despite the company managing to increase production.
As a result, the company moved into the red with a loss of $118 million in the quarter, compared to a profit of $266 million a year ago in the same period. Cenovous expects that the majority of its projects will come on stream by 2020, while refining operations will continue to support operations in the meantime.
Overall, the biggest hurdles for Canadian oil companies remain the transportation bottlenecks, and while these are unlikely to go away in a hurry, discounted entries in these stocks are something of a positive for investors considering some decent long term bets.
The article Declining Canadian Oil Prices are a Blessing in Disguise originally appeared on Fool.com and is written by Jacob Wolinsky.
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