Canada in Desperate Need of More Energy Trading Partners

A little diversification could go a long way.

| More on:
The Motley Fool

President Obama recently talked on climate change, in which he restated climate policy for the U.S. While not much of the policy was novel, President Obama touched on TransCanada’s Keystone XL pipeline and reiterated the approval of the pipeline will need to be in the best interest of the U.S. More to the point, the pipeline will pass as long as a it does not result in a significant amount of carbon emissions.

This uncertainty drives the risk of relying solely on the United States as an energy export partner, with 99% of crude and 100% of natural gas exports going to our southern neighbor. Canada needs to diversify its customers, fast. In this video, Motley Fool energy analyst Joel South discusses what it is about the changing energy market in the U.S. that makes it so risky for Canada to remain so overexposed to the U.S. market, and why increased pipeline takeaway capacity could help alleviate the problem.

As investors looking to assemble an air-tight portfolio, opportunities to find high dividend paying stocks is paramount. Some of the best paying dividend stocks are energy midstream companies, who are responsible for assembling and managing the very pipelines Canada needs. For a nice check-in on high yielding stocks to buy today, be sure to click on this link and continue building and protecting your investment portfolio.

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 contributor Joel South does not own any of the companies mentioned in this report.  The Motley Fool has no position in any stocks mentioned at this time.

 

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

Investing

$1,000 Ready to Deploy? 3 Quality TSX Stocks for Canadian Investors

Amid improving investors sentiments, the following three Canadian stocks offer excellent buying opportunities.

Read more »

Blocks conceptualizing the Registered Retirement Savings Plan
Dividend Stocks

RRSP Investors: 3 Canadian Dividend Stocks to Buy on Dips

These stocks have strong track records of dividend growth and now trade at discounted prices.

Read more »

concept of real estate evaluation
Dividend Stocks

Beyond Real Estate: These TSX Income Generators Could Deliver Superior Passive Income for Canadians

These two TSX dividend stocks could offer Canadian investors a reliable income stream and strong long-term upside, without relying on…

Read more »

Confused person shrugging
Dividend Stocks

Better TSX Dividend Stock to Own: Manulife or Sun Life?

While Sun Life stock has outpaced Manulife in the last two decades, which dividend-paying insurance giant is a good buy…

Read more »

A plant grows from coins.
Energy Stocks

Got $25,000? Turn it Into $200,000 in a TFSA as Canadian Dollar Gains

This energy stock may not have a high dividend, but it certainly has a high rate of growth to look…

Read more »

coins jump into piggy bank
Dividend Stocks

How to Use Your TFSA to Earn $1,057/Year in Tax-Free Income

Investing $5,000 in each of these high-yield dividend stocks can help you earn over $1,057 per year in tax-free income.

Read more »

data analyze research
Tech Stocks

Is BlackBerry (TSX:BB) a Buy in May 2025?

While its recent downturn might not look pretty, it might be the best opportunity to buy BlackBerry (TSX:BB) stock and…

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Investing

Where I’d Invest the New $7,000 TFSA Contribution Limit in 2025

If you have $7,000 for the new TFSA contribution increase, here are three stocks I would contemplate adding to the…

Read more »