US drilled — buyouts of Canadian oil and gas companies continues
Commentary by John Myers – an analyst on oil, gas and gold. By the way, he’s located in Calgary, Canada’s oily hotspot.
» 321gold.com: Meanwhile, America’s rotary rig count, which once totaled more than 5,000 active in the early 1980s, stands just above 700 today. Even with crude oil prices above $28 a barrel, American oil companies have slashed domestic exploration budgets because they understand one fact – America is drilled out.
Since 2000, U.S. oil companies have replenished their reserves by acquiring other oil companies, many of which are headquartered in Canada. These Canadian companies have significant reserves and will continue to provide an expedient solution to America’s brewing energy crisis.
In short, I believe U.S. buyouts of Canadian oil and gas companies will continue. And we’re looking into more takeover candidates for OI recommendations.
But Canada is not a panacea that will cure America’s oil crisis. This was supported by some somber predictions at a November energy symposium in Ottawa, Canada. According to several of the industry’s top experts, Canadian and worldwide production of oil and natural gas will peak sometime before 2020.
The only solution, said symposium speakers, will be higher energy prices from the gas pump right on through to household electricity.