Suncor and Cenovus Lead Energy Stocks Lower

Energy stocks facing a one-two punch on Thursday.

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The Motley Fool

Not only is the Canadian Energy sector contending with an oil price that continues to slide, down another 1.7% thus far today, but a provincial Government that wants to introduce significant penalties if greenhouse gas emission limits are exceeded.

Suncor (TSX:SU,NYSE:SU), Cenovus (TSX:CVE,NYSE:CVE), Canadian Natural Resources (TSX:CNQ,NYSE:CNQ), and Crescent Point (TSX:CPG) are four of the top 5 worst performing large-caps in Thursday’s Canadian market.  The stocks are down 1.9%, 1.6%, 1.4%, and 1.4% respectively in pre-noon trading.

The oil price has taken a hit over the past two days, falling from $97.19 to $92.84, a decline of 4.5%, on the back of several weaker than expected economic releases.

Stacked on top of this commodity decline was the news that the Alberta Government is considering legislation that would force large oil-industry producers to slash greenhouse gas emissions by as much as 40% on each barrel of production or face a significant penalty.  This announcement came as a shock to the companies, as well as the Federal Government.

Alberta, as well as the Federal Government, wants to see TransCanada’s (TSX:TRP,NYSE:TRP) Keystone Pipeline gain Washington’s approval.  Much of the push back from Washington on this project has been on the environmental impact of oil sand related greenhouse gas emissions.  The proposal by Alberta’s Premiere to introduce punitive costs in an attempt to reign in greenhouse gas emissions is being viewed as a potential bargaining chip in the Keystone debate.

While oil tends to grab most energy related headlines, another source of energy that is currently flying under the radar of most investors is nuclear.  Nuclear power requires uranium, a resource that has the potential to be the fuel of the 21st century.  Click here now for instant access to our FREE report titled “Fuel Your Portfolio With This Energetic Commodity”.  We think you’ll be surprised just how bright the future is for uranium, just how far two Canadian names have fallen, AND how fast they could rebound.Click here now to access this free report, and hop on for the nuclear ride of your life.

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Fool contributor Iain Butler is short $30 April 2013 put options on Cenovus.  The Motley Fool has no positions in the stocks mentioned above.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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