In a recent article in the International Business Times, it was reported that BHP Billiton (NYSE: BHP), the world’s biggest natural resources company out of Australia, was exiting India as it could not get permits to begin oil and natural gas operations. Like Royal Dutch Shell (RDS-A) selling blocks in Nigeria due to theft, this, yet again, highlights the appeal of the North American energy sector. What is a loss to the shareholders of BHP Billiton and the people of India is a gain for the those owning stock in North American energy firms such as ConocoPhillips (NYSE: COP), Suncor Energy (NYSE: SU), Americas Petrogas (TSX: BOE), and Octagon 88 (OCTBB: OCTX), among others.
India’s move against BHP Billiton is hardly the first by a foreign country to an outside investor in its energy industry.
As detailed in a previous article on this site, France has banned fracking. Other countries do not welcome foreign investment in the energy sector like the United States and Canada. In particular, Canada is very accommodating of foreign investment in the energy sector. CNOOC (NYSE: CEO), the Chinese oil giant, bought Nexen earlier this year for $15 billion. Octagon 88, with potentially very valuable holdings in Alberta, is based in Switzerland.
For all investors, the range of companies operating in North America is very appealing. There are prominent blue chips such as Suncor Energy and ConocoPhillips and promising small caps such as Americas Petrogas and Octagon 88. Legendary investor Warren Buffett is a major shareholder in both ConocoPhillips and Suncor Energy.
The chart below shows how well Suncor Energy has done with Warren Buffett as a shareholder.