A $2 billion bet has been placed on the North American energy sector by Formosa Plastics Group, a bullish sign for oil and natural gas companies in North America such as Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP), Octagon 88 (NASDAQ: OCTX), and Suncor Energy (NYSE: SU).

Formosa Plastics Group has filed for an application to expand is facilities in Texas.  It is doing so due to the favorable energy situation in North America. By far, North America is the hottest region for oil and natural gas production in the world.

That should increase even more in the future.

Both the United States and Canada have developed North America into the most favorable continent for oil and natural gas exploration.  Foreign investment welcome.  Billions flow from abroad due to the political security and stable situation of North America.  According to a recent article in The Wall Street Journal, China has invested $44 billion in North American energy assets since 2009.

It is not just investors from Asia, either.

Octagon 88 is owned by a Swiss group.  The stock is up sharply (chart below) in recent trading due to favorable results for its holdings in Canada.  Repsol (OTC: REPPY) is looking to spend up to $10 billion for energy assets in North America.

The largest chemical company in Asia, firms like Formosa Plastics Group do not make $2 billion investments without intensive research.  That it is expanding in the United States due to the favorable energy environment is very bullish for companies like Chevron, Octagon 88, Suncor Energy, and ConocoPhillips.  Investors should follow the lead of the “smart money” from across The Pacific!