Suncor Energy Inc. (USA) (SU), Enbridge Inc (USA) (ENB): Finding the Right Tool to Profit From Canadian Oil Sands

Enbridge Inc (USA) (NYSE:ENB) is doing whatever it can to expand operations, and that includes developing a pipeline to the British Columbia coast for bitumen transportation to Asia. While that would be a major boost to the company’s profits — and help find a market for the product long into the future — the company is facing regulatory difficulties convincing the B.C. government that the pipeline wouldn’t have a significant negative environmental impact. However, of the CAD $27 billion of growth projects underway with the company in Canada, 89% are secured. This firm looks well-positioned to keep growing.

Canadian oil sector roundup

The evidence suggests there is no slowing down in the Canadian oil sector, and that’s good news for Logan, which will be there to provide the essential equipment. However, investors should be cautiously optimistic about the profitability of the Canadian oil sands. While companies exposed to the sector have experienced massive profits over the last several years, those are hard to maintain, given the alternative forms of energy that are becoming more available. I am going to look for a consistent trend of decreasing profits at the oil giants before ruling out the sector completely, as I believe the efficiency of alternative forms of energy has a long way to go. However, for the time being, the steadily increasing global population will continue to demand oil for its energy, and that puts all these firms in solid positions.

The article Finding the Right Tool to Profit From Canadian Oil Sands originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar owns shares of Logan International. The Motley Fool has no position in any of the stocks mentioned. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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