Written by Miranda Marquit
SEC considers rules change for reporting oil sands value.
For years, the U.S. Department of Energy has considered oil sands proven oil reserves. And now, companies that use Canadian oil sands for resources are hoping that the SEC will finally get on board. The Globe and Mail reports on what the SEC is considering as it relates to Canadian oil sands:
The changes being considered by the SEC would allow for "an apples-to-apples comparison" of North American oil companies and remove the uncertainty from oil sands reserves, said Justin Bouchard, a Calgary-based analyst at Raymond James Financial Inc. Right now, oil sands are required to be listed as "bitumen" rather than crude oil. Not only that, but their value has to be booked on Dec. 31 prices, which are generally considered very weak. Canadian oil sands companies like EnCana (ECA), Petro-Canada (PCZ) and Suncor Energy (SU) would be more directly comparable to companies like Exxon (XOM) and Chevron (CVX).
All three oil sands companies listed above are making gains on the stock market, as is evident by the news. However, there are concerns among environmentally friendly investors. Canadian oil sands are thought to be polluting, and many groups decry the practices, despite claims by Alberta Premier Ed Stelmach that the oil sands industry is cleaning up its act.
Disclosure: I own none of the companies listed above.
Photo:Snowrunner, Creative Commons, Flickr