Oil and Gas

Canada has the world’s 3rd largest proven crude oil reserves and 18th largest proven natural gas reserves.Footnote 1 Canada offers foreign investors in this sector strong production economics, excellent proximity to markets (both North American and Asian), an established production and transportation infrastructure with 19 refineries and 825,000 kilometers oil pipeline system, and access to one of the largest capital markets for oil and gas companies.

“For BP, Canada is one of the better places to invest in the world. It is a stable economy. It has a stable political system. It has pragmatic regulations that allow us to be both safe and efficient. It has great people [...] just great talent locally. It’s a center of innovation in technology, and it has a great hydrocarbon basin, which is obviously extremely important for a business such as ours.”

Murray Auchincloss – Deputy CFO (upstream) & Head of Business Development, BP (July 2013)

  • For foreign investors, the full cycle supply costs for Canadian oil and gas investment opportunities are competitive with other investment opportunities such as U.S. tight oil, offshore oil, and global shale gas.
  • The country provides competitive production economics and commercial terms for global investors. Financial incentives such as Flow-Through Shares (FTS) enable companies to transfer eligible exploration and development expenses to investors, which can then apply for tax credits for these expenditures. This feature enables a company involved in exploration, drilling, production, refining or pipeline operation to fund its activities more easily.
  • When it comes to Oil and Gas listings, the Toronto Stock Exchange (TSX) ranks 1st among all exchanges globally, with 35% of the world’s public oil and gas companies listed in Canada. Footnote 2 Further, 21% of oil and gas services companies are also listed on the TSX, making Canada one of the largest capital markets for oil and gas plays.

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Footnotes

Footnote 1

Natural Resource Canada. Energy Markets Factbook, 2013 – 2014

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Footnote 2

Toronto Stock Exchange

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