Many articles on this site have detailed for the investors the long term value of oil and natural stocks operating in North America of all sizes, ranging from in scale from Exxon Mobil (NYSE: OXY) and ConocoPhillips (NYSE: COP) to Octagon 88 (OTC: OCTX) and Americas Petrogas (OTC: APEOF).
Marathon Oil (NYSE: MRO) just proved it!
A Wall Street Journal article reported recently that Marathon Oil was selling its North Sea assets. With the proceeds, it is looking to increase its North American presence. The investment community greeted the news bullishly.
Marathon Oil is hardly the first to make recent moves to bolster its reserve in North America.
Occidental Petroleum (NYSE: OXY), Royal Dutch Shell (NYSE: RDA-A), and Repsol (OTC: REPPY) are all major firms leaving other areas. Assets have been sold in Argentina, Latin America, The Middle East, and other regions. The political instability and economic insecurity of those areas has these oil and natural gas entities pulling out and looking to buy in the United States and Canada.
That makes the North American operations of Octagon 88, Americas Petrogas, Exxon Mobil and ConocoPhillips even more valuable. With billions more being plowed into the region, prices will rise. This has been happening: according to a recent article in The Wall Street Journal, China has spend $44 billion for energy holdings in Canada and the United States over the last five year.
Repsol, headquartered in Spain, is looking for up to $10 billion in North American energy assets.
As more oil firms relocate to North America, more investors will follow. For those fortunate to be owning shares of Octagon 88, Americas Petrogas, Exxon Mobil, and others, that should be a very bullish development. It is a lesson in investing for the future for those who do not.