Canada’s oil and gas industry is made up of three major segments: upstream, midstream, and downstream. Upstream companies are directly involved in the exploration and production (E&P) of crude oil and natural gas. This work includes searching for oil below the ground and drilling wells in order to access those reserves. Companies working in the Canadian oil sands mine for crude bitumen, a dense, viscous form of crude oil, or use in-situ recovery processes that work by injecting steam and chemicals deep beneath the ground. This separates the bitumen from the sand and pumps it to the surface. Both of these methods are relatively expensive compared to traditional well-extraction methods. This increases the break even price for oil and oil sand producers, significantly higher than traditional producers. Midstream companies usually deal with storing and transporting oil and gas. Downstream companies are involved in the business of refining and selling finished petroleum products for consumption.
Here are the Best Canadian Oil Stocks for you to buy now
Canadian Natural Resources (TSE: CNQ)
Kicking off our list of the best Canadian oil stocks to buy, is Canadian Natural Resources Limited. This firm acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2020, the company had total proved crude oil, bitumen, SCO, and NGLs reserves were 10,528 million barrels (MMbbl); total proved plus probable crude oil, bitumen, SCO, and NGLs reserves were 13,271 MMbbl; proved natural gas reserves were 9,465 billion cubic feet (Bcf); and total proved plus probable natural gas reserves were 15,922 Bcf. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.
Suncor Energy (TSE: SU)
Suncor Energy Inc. operates as an integrated energy company. It is definitely a strong Canadian oil stock to invest in. The company primarily focuses on developing petroleum resource basins in Canada’s Athabasca oil sands; explores, acquires, develops, produces, transports, refines, and markets crude oil in Canada and internationally; markets petroleum and petrochemical products under the Petro-Canada name primarily in Canada. It operates in Oil Sands; Exploration and Production; Refining and Marketing; and Corporate and Eliminations segments. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada.
Imperial Oil (TSE: IMO)
Imperial Oil Limited explores for, produces, and sells crude oil and natural gas in Canada. It operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment explores for and produces crude oil, natural gas, synthetic oil, and bitumen. As of December 31, 2020, this segment had 138 million oil-equivalent barrels of proved undeveloped reserves. The Downstream segment is involved in the transportation and refining of crude oil, as well as blending, distribution, and marketing of refined products. It also transports crude oil to refineries by contracted pipelines, common carrier pipelines, and rail; maintains a distribution system to move petroleum products to market by pipeline, tanker, rail, and road transport; and owns and operates fuel terminals, natural gas liquids, and products pipelines in Alberta, Manitoba, and Ontario. The company was incorporated in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited is a subsidiary of Exxon Mobil Corporation. It is a fantastic Canadian oil stock for investors looking to park some money in that sector.
Parkland Fuel Corp. (TSE: PKI)
PerkinElmer, Inc. provides products, services, and solutions to the diagnostics, life sciences, and applied services markets worldwide. The company, which has one of the best Canadian oil stocks, operates in two segments, Discovery & Analytical Solutions and Diagnostics. The Discovery & Analytical Solutions segment offers a suite of solutions, including reagents, informatics, and detection and imaging technologies that enable scientists to enhance research breakthroughs in the life sciences research market, as well as laboratory services. It also provides analytical technologies, solutions, and services for the environmental, food, and industrial markets that enable its customers to understand the characterization and health of various aspects, including air, water, and soil. PerkinElmer, Inc. was founded in 1937 and is headquartered in Waltham, Massachusetts.
Cenovus Energy Inc. (TSE: CVE)
Rounding up our list of the best Canadian oil stocks to buy, is Cenovus Energy Inc. Together with its subsidiaries, it develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada, the United States and the Asia Pacific region. The company operates through Oil Sands, Conventional, and Refining and Marketing segments. The Oil Sands segment develops and produces bitumen in northeast Alberta. Its bitumen assets include Foster Creek, Christina Lake, and Narrows Lake, as well as other projects in the early stages of development. The Conventional segment holds assets primarily located in Elmworth-Wapiti, Kaybob-Edson, and Clearwater operating areas of British Columbia and Alberta, as well as various interests in natural gas processing facilities. The Refining and Marketing segment transports and sells crude oil, natural gas, and NGLs. This segment owns a 50% ownership in Wood River and Borger refineries located in the United States, and owns and operates a crude-by-rail terminal in Alberta. Cenovus Energy Inc. was founded in 2009 and is headquartered in Calgary, Canada.