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Jonathan Yates
North American Energy Assets Benefit from South African Law

The recent move by South Africa to protect its oil company, Sasol (NYSE: SSL), from foreign competition has major firms such as Exxon Mobil (NYSE: XOM) and Royal Dutch Shell (NYSE: RDS-B) in opposition.  As detailed in a previous article on this site, this is another problem for Royal Dutch Shell for its operations in Africa. It is also another reason why North American oil and natural gas companies like Suncor Energy (NYSE: SU), ConocoPhillips (NYSE: COP), Americas Petrogas (TSX: BOE), and Octagon 88 (OCTBB: OCTX) are so appealing to long term investors.

Warren Buffett, considered by many to be the best investor in history, is a major shareholder of both ConocoPhillips and Suncor Energy.

There is much to like about each firm, particularly the stock performance of each this year.  For the last six months, Suncor Energy is up by more than 25%. Over the same period, ConocoPhillips has risen nearly 25%.  Both Suncor Energy and ConocoPhillips pay strong dividends.  ConocoPhillips and Suncor Energy are Big Oil in every meaning of the word.

Americas Petrogas and Octagon 88 are Small Oil with Big Potential.

The stock price for Octagon 88 has soared due to recent reports about its holdings in Canada.  A series of reports and a license approval resulted in the stock surging in double digits over the last quarter.  A Swiss firm, Octagon 88 has very appealing assets in Canada, as the rise in its stock price certainly indicates.

Like Suncor Energy, Americas Petrogas is a Canadian oil and natural gas firm based in Calgary, the heart of energy country.  Like Octagon 88, Americas Petrogas is up after receiving positive reports about its assets.  In addition, Americas Petrogas reported recent results that featured a rise in net revenues and sales volume.  An investment bank, Jefferies LLP, has also been hired by Americas Petrogas to enhance shareholder value.

Countries around the world are very controlling of their energy sectors.

That is what makes oil and natural gas companies based in North America so valuable.  South Africa’s action to protect Sasol will not be the last of that types.  Each of those makes firms such as ConocoPhillips, Suncor Energy, Octagon 88, and Americas Petrogas more alluring to long term investors seeking a stable portfolio.



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