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,Ā over the past year, theĀ 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. Donāt miss out on this limited time free report!
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.
Follow us on Twitter and Facebook for the latest in Foolish investing.
Fool contributors Joel South and Taylor Muckerman have no positionsĀ in any stocks mentioned at this time.Ā The Motley Fool has no position in any stocks mentioned at this time.Ā Ā Ā Ā
