Big Oil Looking to Buy Big in North A...
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Sep
20
Jonathan Yates
Big Oil Looking to Buy Big in North America
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Many articles on this site have detailed the long term appeal of oil companies, whether it is a major firm such as ConocoPhillips (NYSE: COP) and BP (NYSE: BP) or small caps with alluring potential, such as Octagon 88 (OTCBB: OCTX) and Americas Petrogas (TSX: BOE).  Repsol (PINK: REPYY), a major oil and natural gas firm based in Spain, has announced its intention to spend $5 to $10 billion for energy assets in North America.

In a Wall Street Journal article about this, it was reported that Repsol wanted more secure oil and natural gas assets.

The tension in the Middle East and turbulence in other oil-producing states such as Nigeria, while keeping the present price of oil high, obviously puts a premium on energy holdings in secure states.  ConocoPhillips is based in Houston, Texas.  Americas Petrogas is headquartered in Calgary, the oil capital of Canada.  Although a Swiss firm, Octagon 88 owns extensive oil and gas resources in Canada.

As detailed in another article on this site, the “Syrian Premium” that has oil high at the moment is expected to remain by some energy experts.

Buying by Repsol will also keep prices high.  That Repsol is looking to buy in North America, is bullish for firms such as Americas Petrogas, ConocoPhillips and Octagon 88, due to its Canadian holdings.  The Repsol move adds another factor as to why oil and natural firms are appealing for the long term.

For the individual investor, Repsol provides confirmation that buying oil and natural gas assets in North America is the best use of its billions.  That provides more security for those looking to buy shares of publicly traded oil firms.  Vital to the world’s economy, stocks from the oil and natural gas sector such as ConocoPhillips, Octagon 88, BP, and Americas Petrogas have a role to play in all investment portfolios.

 

 



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