Suncor and Cenovus Lead Energy Stocks Lower

Energy stocks facing a one-two punch on Thursday.

| More on:
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.

Follow us on Twitter and Facebook for the latest in Foolish investing.

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.

More on Investing

Stocks for Beginners

These 3 Canadian Stocks Are Undervalued and Built to Outperform

These Canadian stocks are trading below what they’re worth and could reward investors willing to wait.

Read more »

Canadian Dollars bills
Dividend Stocks

Where to Invest $8,900 in the TSX Today

These two stocks might seem on two ends of the investment spectrum, but both offer up strong growth.

Read more »

Offshore wind turbine farm at sunset
Energy Stocks

This Renewable Energy Stock Could Be the Best Investment of the Decade

Down over 50% from all-time highs, FSLR is a renewable energy stock that trades at a discount to consensus estimates…

Read more »

space ship model takes off
Metals and Mining Stocks

Meet the Monster Stock That Continues to Crush the Market

Soaring gold demand amid tensions worldwide offers the tailwinds that this TSX gold stock needs to deliver market-beating returns, and…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Friday, June 20

The TSX may struggle for direction today as investors digest mixed Fed cues, retail sales, and ongoing geopolitical risks.

Read more »

woman looks at iPhone
Tech Stocks

Shopify, Lightspeed, and WELL Health: Are They Good Buys Today?

While broader markets have rallied, Shopify, Lightspeed, and WELL Health stocks haven't followed suit, showing weaker performance.

Read more »

dividends grow over time
Dividend Stocks

4 Top Canadian Stocks I’d Buy for Dividends and Capital Growth

If you want dividend income and capital growth, these four Canadian stocks are the kind of stocks you want to…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Retirement

How to Make Your $7,000 TFSA Contribution Work Harder This Year

Let's dive into three key tips for Canadian investors looking to win by putting $7,000 into their TFSA for the…

Read more »