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Mar
26
Tim Lambert
“Force Majeure” in Africa Highlights Appeal of American Natural Resource
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Royal Dutch Shell (NYSE: RDS-B), Europe’s biggest oil firm, has declared “force majeure” again for its contracts in Nigeria due to hostilities.

That means it is not bound to the contractual obligations.  There is also trouble in other natural resource sectors in Africa, such as gold and copper. Tension is not limited to Africa, however, as there are problems in other parts of the world such as the Ukraine.  From that, companies with substantial holdings in the natural resources sector in North America ranging from the biggest in the world such as ExxonMobil (NYSE: XOM) and GoldCorp (NYSE: GG) to promising small caps such as Mondial Ventures (OTC: MNVD) and Premium Exploration (OTC: PMMEF) become even more appealing.

The latest problem in Nigeria for Royal Dutch Shell comes from a four-foot gash in pipeline, according to a report from The Wall Street Journal.

That is not the first time that Royal Dutch Shell has been forced to declare “force majeure” for its operations in Nigeria.  More than likely, it will not be the last.  Earlier this year, strikes were causing a problem for gold companies in South Africa.  China is having problems with its copper holdings in Zimbabwe.  These, along with the situation in the Ukraine, show the appeal of natural resource companies in North America.

It could be a whole new set of circumstances tomorrow, but the end result will be natural resource assets in North America being even more attractive to investors.

Fortunately, investors have a wide selection of publicly traded companies to choose from.  For investors seeking high growth, small caps like Premium Exploration and Mondial Ventures have much to offer.  Premium Exploration is in the gold sector of Idaho.  Mondial Ventures operates in Texas oil country.  Both of those areas have a rich history of rewarding those investing in the natural resource sector.

For income investors, it is tough to beat Big Oil.

Royal Dutch Shell, ExxonMobil, and many other oil and natural gas firms have high dividend yields.  In addition, these companies have a strong history of dividend growth.  That rewards long term investors with a growing dividend yield.

From high growth to high dividend yields, natural resource companies in North America have much to offer to those seeking security and stability for their investments.

 



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