Apparently the Chinese have been reading the many articles on this site detailing the appeal of investing in the North American energy sector, especially those in the small cap sector.
A Chinese energy firm, Yanchang Petroleum, recently purchased Novus Energy in Canada. There will likely be more ahead as Zhang Kaiyong, chairman of Yanchang Petroleum International Ltd., stated that, “Overall the Yanchang group is following its own development strategy and part of it is going out … to international markets. At this stage of our development, (we are) coming to Canada which is politically stable, well-regulated, transparent. So overall the bigger conditions of investing in Canada are very good.”
That is very bullish for small cap companies operating in Canada such as Octagon 88 (OTC: OCTX) and Americas Petrogas (OTC: APEOF). Shareholders of Big Oil Canadian firms like Suncor Energy (NYSE: SU) should also be pleased.
A recent article on this site reviewed the BP Energy Outlook, which projected a 41 percent increase in global energy demand by 2035.
The great bulk of that need will be met by the fossil fuel sector. Natural gas is expected to have the greatest growth. There will also be an increasing demand for oil. Countries are trying to move away from coal. The renewable sector is nowhere close to being capable of meeting the demands of the mass market for energy.
While the need is increasing, so is unrest in oil producing regions such as The Middle East and Africa.
That results in Canada being much more attractive for energy investing. North America is much more politically stable and economically secure than other regions. As a result, companies in the Canadian energy sector such as Octagon 88, Americas Petrogas, and Suncor Energy can command premium prices.
Octagon 88 has very promising holdings, as shown by this video.
According to reports, the company has been approached by a Chinese entity. Warren Buffett is a major investor in Suncor Energy. Americas Petrogas is up due to increased interest, too.