Cold Winter Temperatures Give Rise to a Hot M&A Market for the Canadian Oil and Gas Sector


It was the biggest deal of 2012: Chinese state-owned firm CNOOC Limited’s takeover of Calgary oil and gas producer Nexen Inc. Although there were a total of 260 deals closed over the course of the year, it was CNOOC Limited’s CDN$14.95 billion transaction and another megadeal — PETRONAS’ CDN$5.5 billion acquisition of Progress Energy — that helped lift 2012 transaction values to approximately CDN$49.5 billion.
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U.S. Energy Policies are Affecting Investment Decisions


The recent announcement by the Environmental Protection Agency (EPA) that the U.S. will reduce CO2 emissions from coal generation by 30% from 2005 levels by the year 2030 is the latest in a number of policy and regulatory decisions that have and will continue to affect the energy supply and demand balance in the U.S.
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What You Need to Know About Oil & Gas Hedging


To Hedge or Not to Hedge
While some may see hedging as a complicated and advanced investing strategy, the principles behind hedging are in reality very simple. Hedging commodities allows investors to ensure predictable financial results by protecting against future price movements. By purchasing futures contracts, investors can lock in prices that are favorable to an organization to continue realizing profits over time. While limiting exposure to financial losses also limits the potential for gains, it does help protect investors during periods of market volatility.
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New Paradigm in E&P Finance


Domestic exploration, production and development have been transformed by technological advances leading to an explosion of unconventional and conventional production of oil, natural gas and natural gas liquids. The first stage of this recent transformation was the land grab and lease maintenance drilling in the early part of the decade. Now, the second stage has begun, which is the rationalization of acreage portfolios and more deliberate exploitation of reserves. Ultimately this stage will require billions of dollars of capital expenditures to fully develop the possible and probable reserves unlocked by this new technology. Oil and gas companies will spend about $723-billion on exploration and production in 2014, an increase of 6.1 percent over 2013, Barclays Bank said in a recent report. Where will the money come from?
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