There’s growing interest among U.S. investors in the Canadian oilpatch, a trend driven by friendlier rhetoric from the federal government and a belief that the industry north of the border will more reliably return cash to them in the years ahead.
Jeremy McCrea, a Calgary-based managing director at BMO Capital Markets, described the trend as a “rotation,” with more investment coming from the United States and a slight decline from Canada.
While lower oil prices have generally put a bit of a damper on investment, many portfolio managers still want to hold some energy stock and see more potential in the Canadian sector compared with the U.S., he said.
“You are seeing more U.S. investors saying, ‘If we have to hold energy, we'd rather hold Canadian energy here today,’” McCrea said.
U.S.
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