Seeking Alpha. Read. Decide. Invest.
Exxon Mobil (XOM) took a beating in from late 2008 to mid 2010. But it is now three years after the global tanking of energy prices and according to an article in the Wall Street Journal, foreign investors are piling into Canada’s Alberta and Edmonton areas as Alberta announces its plan to double its oil production. If that was not enough, there is a shale oil boom happening in the United States.
Canada Is A Game Changer
Edmonton and Alberta combined are sitting on what is estimated to be over $16 Trillion dollars (Cdn.) of oil. Obviously the principal problem up until now was getting the oil out of the sand. With the advent of technology this has now become economically feasible. According to an article in the Edmonton Journal:
“Over the next two years, the board predicts Alberta will create 132,900 net new jobs or about 40,000 more people than the entire population of Red Deer cutting the province s unemployment rate to 4.5 per cent by 2013. That s just one per cent above the pre-recession lows of 2007.”
The Petroleum Human Resources Council of Canada says nearly 40,000 new workers will be needed in the energy sector by 2020 just to replace those who retire, plus 90,000 additional oil-patch workers will still be needed. With China, South Korea, Japan and Thailand all spending Billions of dollars in new investments is it no wonder that Exxon is spending $10.9 billion (Cdn) on the Kearl Oilsands Project. By comparison, Husky Energy (HUSKF.PK) is spending $2.5 billion on its Sunrise Phase One Sit Project.