Yes, American Oil Is Coming Back

Brian Hicks

Written By Brian Hicks

Updated December 19, 2023

With all the recent brouhaha about America’s oil and gas resurgence, I want to remind you that Canada is still the largest foreign supplier of energy to the United States…

More than Saudi Arabia…

More than Brazil and more than Mexico…

And that trend will continue, as part of the prolific Bakken formation resides in Canada.

As you know, I love Canadian oil and gas stocks that pay hefty dividends.

Last August, I recommended you buy my favorite oil dividend stock, Petrobakken.

Petrobakken is a Canadian Bakken producer that has consistently paid a $0.08 dividend per share, per month, for the past 27 months.

At current levels of $11.62, Petrobakken yields 8% in steady income from oil production.

A couple of months ago — when everything sold off — Petrobakken reached a low of $5.75.

Hindsight being 20/20, it was a once-in-a-lifetime buying opportunity.

Had you picked up shares of Petrobakken on October 4th (the day it hit that low), you would’ve already doubled your money through capital appreciation.

Petrobakken December 2011

And of course, the dividend yield from that price would’ve been over 16%!

But Petrobakken is just one of many Canadian stocks that pay hefty monthly dividends.

And still, that’s only part of the story…

You see, one of the benefits of buying Canadian-based oil and gas companies is that they pay their dividends in Canadian dollars, which is natural resource-backed. (Think of a gold standard, but with oil, gas, gold, silver, timber, etc.)

Over the past several months, the Canadian dollar weakened versus the U.S. dollar, as many commodities dropped in price.

However, the Canadian dollar has been strong against the greenback since the 2008 financial crisis because its natural resources remained stable in price.

EU concerns have led investors to get out of a whole host of currency, commodity, and equity investments… and into the perceived safety of U.S. dollars.

As a result, several of these asset classes are now at or near their recent lows.

Any future U.S. dollar weakness or oil demand strength should move oil prices back up.

This would benefit Canadian stocks involved in the production and distribution of oil and gas, with assets and dividends in Canadian dollars.

In addition to Petrobakken, some of the Canadian oil and gas stocks I like are Crescent Point Energy, Baytex Energy Cenovus EnergyEnbridge, Enerplus, Pengrowth Energy, Provident Energy, and Penn West Petroleum.

I would accumulate these companies on weakness.

Profitably yours,

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Brian Hicks

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Brian is a founding member and President of Angel Publishing. He writes about general investment strategies for Wealth Daily and Energy and Capital. For more on Brian, take a look at his editor’s page.

Publisher’s Note: An avid listener and one-time guest on his radio show, I learned Monday night that popular Baltimore radio host and political and social agitator Ron Smith passed away.

On Nov. 28, after continuing on-air for more than two months despite having been diagnosed with stage 4 pancreatic cancer that had metastasized throughout his body, Ron signed off from the 50,000-watt news talk station for the last time in his signature straightforward, no-nonsense radio style.

“I’m retiring,” the former Marine said in a live broadcast. “I basically can no longer do it. I’m getting weaker every day, and it’s time to pull the plug. I’m just not up to it. So, you have to face that kind of thing. Basically, the curtain is coming down right now. I’m bidding everyone a very fond farewell.”

Ron, a true conservative in the libertarian sense, won my undying loyalty when he came out against the Iraq War during the run-up to the invasion.

Called the “voice of reason,” he took a beating by much of his audience for his stance — and even lost some of his loyal listeners. But he never wavered in his opinion that invading Iraq was imperialistic and would ultimately drag down the United States…

The day before his death, the last U.S. convoy quietly left Iraq.

America has lost a hero. R.I.P. Ron Smith.

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