The lack of crude takeaway capacity is having a dramatic effect on Canadian energy companies as Western Canadian Select benchmarked crude continues to trade at a significant discount to the United States and global crude benchmarks. As a result, over the past year, the S&P 500 Energy index has doubled the performance of the S&P/TSX Capped Energy index.
While Canadian energy assets hold significant long term value, investors could hedge their investments by finding domestic firms with significant revenues coming from the United States. In the following video, Motley Fool energy analyst Joel South discusses three Canadian energy companies profiting throughout North America.
While patient investors are purchasing discounted energy companies before the crude bottlenecks are alleviated by increased pipeline capacity, others are diversifying their portfolios by purchasing rock-solid US companies. For this very reason, The Motley Fool has put together this free report, 3 U.S Stocks Every Canadian Should Own. Don’t miss out on this limited time free report!
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Fool contributors Joel South and Taylor Muckerman have no positions in any stocks mentioned at this time. The Motley Fool has no position in any stocks mentioned at this time.