Are you considering making an investment in the Canadian oil sands Trust? Do you want to learn more about not only the company but also the Canadian oil sands in general? Read our guide for more facts and information…
The Canadian oil sands is an area in northern Alberta where the land features many large deposits of heavy crude oil. The oil sands are found primarily near the banks of the Athabasca River and on the outskirts of Fort McMurray in Alberta. The Canadian oil sands deposits are the only such deposit in the world that is accessible by surface mining. The large deposits of crude oil that constitute the Canadian oil sands raise Canadian oil reserves to an amount that ranks second in the world only behind Saudi Arabia. The Canadian oil sands were long considered too costly for extraction; however, with rising oil prices and depleting world reserves extraction is now considered economically viable.
The Company
The Canadian Oil Sands Trust is a company that offers its stake holders a pure investment opportunity in the oil sands. The Trust is one of seven companies that are part of the ownership of Syncrude, an extraction company. The Canadian Oil Sands Trust is the majority owner with a 36.74% interest. Syncrude is a leading company in the Canadian oil sands as at peak production it extracts around 350 000 barrels per day. The Canadian Oil Sands Trust trades publically on the Toronto Stock Exchange under the symbol CON.UN. The company is currently split into 484.4 million units or stock options. By investing in the Canadian Oil Sands Trust the investment is treated as a mutual fund trust for Canadian income tax purposes.
The headquarters of the Canadian Oil Sands Trust is located in Calgary, Alberta while the actual extraction is located about 40km north Of Fort McMurray, Alberta. The company is headed by Marcel R. Coutu as the CEO, Ryan M. Kubik as the CFO, and Trevor R. Roberts as the COO as well as other executives and directors. Canadian Oil Sands Trust is focused on a long term plan rather than short unsustainable gains. The company is also focused on achieving sustainable growth; however, the Canadian Oil Sands Trust has faced selling pressure with the oil market dipping in price leading to a cut in production in the oil sands.
Production Concerns
Production in the Canadian oil sands has met some criticism from environmentalists and the Canadian Oil Sands Trust is considering their concerns. Syncrude, who is in charge of production focuses on the areas of mining, extraction, upgrading, and utilities. Syncrude, along with Canadian Oil Sands Trust is trying to limit damage caused through the process to the air, land, and water as both companies are focused on sustainable production. The Canadian Oil Sands Trust, like all stocks experience ups and downs with the peak in production of 2009 coming in March. The oil produced through the Canadian Oil Sands Trust provides supplies to markets in Vancouver, Edmonton, Salt Lake City, Sarnia, Chicago, and much of the Mid-North in the United States.
