Even if two major foreign energy takeovers go through, Canadian firms will be in a majority position.
The Globe and Mail reports that 59 percent of oil production would stay Canadian, and 55 percent of natural gas, even if the Nexen and Progress Energy deals are approved.
Fred Ketchen with Scotia Capital says it’s not just foreign companies making plays for Canadian resources; Canadian firms are doing the same in other countries.
“When you see opportunities where you can go to some other jurisdiction, and you can get good return on your money, people are going to do that; firms are going to do that,” he said.
Ketchen says the country is going to be a big target for foreign companies for a while.
“If you’re going to invest in the energy area, Canada has to be one of the first places that you’re going to examine,” he said.
Ketchen says the only way for the resource business to grow is through foreign investment.
But the Globe and Mail also points out that 10 of the top 20 energy firms in Canada are now foreign controlled.
December 4, 2012
