Best Canadian Oil Stocks to Buy

Oil prices are rocketing, and you’ve been introduced to the best oil stocks to buy on North American stock exchanges, and among the best are Canadian oil stocks. You can find them on the TSX, Canada’s stock exchange.

Canada’s wealth in oil and gas will gain increased exposure in the media as exports of heavy crude grow. In December alone, Canadian oil exported from the U.S. Gulf Coast averaged nearly 300,000 barrels per day, a record, according to Matt Smith, Kpler’s lead oil analyst for the Americas. This may only be due to decreased production in Venezuela/Mexico now, but we wonder how much could flow if the KeystoneXL Pipeline was ratfied by a new US government?

Estimates vary, but it’s reported that Canadian oil and gas companies trade at lower P/E valuations, about 16 times earnings, compared to US oil companies at 40 times earnings. US oil stocks are the best of major indexes in the US, but as production volumes grow, improved distribution internationally, and high prices for Canadian heavy crude rise, is the Canadian Oil patch about to see the boom of a lifetime?

Yes, US oil stocks are awesome right now, yet Canadian energy stocks haven’t hit their stride as yet. As you can see these US stocks have been rising fast the last 3 months. Worth a look, but it might be getting too late for them. The golden opportunities are with Canadian producers. And you’ll see some penny oil stocks that might be worth a gamble.

Positive Revenue Outlook

Given the price of oil is above $90 a barrel US which translates to about $115 a barrel Canadian, Alberta’s two grades of oil can be very lucrative. Western Canadian Select (WCS) oil is a blend of diluted bitumen and conventional heavy oil and Canadian Light Sweet oil (CLS) is a basket of light sweet crude priced out of Edmonton.

Canadian drilling and production costs may be lower as well, making oil stocks even more profitable stock here. The extra assets some of these Canadian energy companies produce include natural gas, gold, silver and lithium. It might be best to keep your eye on the WCS oil price as your key investment criteria.

“Canada is, I think, the place to be in 2022,” said Eric Nuttall of Toronto’s Ninepoint Partners LP. The $950 million Ninepoint Energy Fund was Morningstar’s top-performing energy-focused fund in 2021, creating a 189% return compared to the S&P/TSX Composite Index’s 22% return. And Canoe Energy Portfolio, another Canadian energy-focused fund also posted a total return of 101% in 2021. — from the Financial Post.

Biggest Oil Reserve in the World: Alberta Oil Sands

Alberta’s oil reserves and the massive oil sands means Canada has one of the worlds largest reserves of oil. It’s heavy oil which can be used for industrial products. The oil sands companies have had to suffer through tough times, often not being able to sell at normal WTI prices. Instead through an agreement, they have to limit production and sell at a Western Canadian Select price which currently is $18 a barrel lower. The WCS issue is a tricky one, but if demand grows and oil transport improves, oil sands oil can flow out to markets freely thus eradicating the torment of controls and regulations.

The issue here is political — rich Eastern politicians and their lobbying groups don’t want Alberta to gain too much political power, which comes from oil and gas revenues. They’ve been interfering with the oil patch for 40 years. It’s a divisive issue and there are no guarantees there won’t be further Federal political interference and taxation of this sector by the Canadian Federal government. Stayed tuned.

Further, international climate activists are pressuring Canada to shut down Oil Sands development completely because of high carbon emissions. These threats are real and investors in Canadian oil stocks have to be okay with the risk.

So production costs in Alberta are high and they have sales limits, with few pipelines to transport oil to markets (XL pipeline was stopped and the TransCanada pipeline has been thwarted for political reasons). Oil is imported into Eastern Canada from OPEC nations thus the Federal essence is to not buy Alberta oil of any kind or allow it to be shipped anywhere.

WTI vs WCS Oil Price

Alberta’s oil companies have become very efficient through all of this interference, taxation and low prices, breaking even at about $40 a barrel at one point. Now, with oil prices at $92 a barrel, their profitability is immense. Currently, WCS oil price is $US78 a barrel.

With huge new profit margins, new export markets,

There’s Lithium in Those Oil Wells!

If making big money off of Canadian oil companies who pump varying grades of oil from lighter to heavy crude in the oil sands, there is another opportunity that might big potential — extracting lithium from old oil wells. The petroleum brine that is drawn out of drilled wells, is normally poured back in later into the dry well. New companies are developing technology to extract the lithium from the brine, to use in rechargeable batteries, including car EV batteries (Tesla).

Canada has massive lithium deposits but it’s too expensive to mine. Company’s did try and went bankrupt. And there are no lithium processing plants and no lithium ion battery plants in Canada, the Federal government has allowed the sale of Toronto’s NEO Lithium to a China company. The lithium contained in Alberta’s oil reserves is a compelling opportunity as the alternative energy revolution slowly comes in.

Let’s Take a look at Some Investible Canadian Oil Stocks

The price of oil while a little volatile given government action as you can see, has actually not risen in the last 3 months. Some of the penny stocks have done well in the past 3 months and others have announced obtaining licenses to pump oil on lucrative lands, sometimes outside of Canada.

The two Canadian oil stocks I purchased were Baytex and Athabasca Oil Corp which have been good performers. I choose them simply because they’re less risky yet have huge upside. I bought Baytex low and sold it high (60% growth).

Stock Symbol	Name	Price Feb 6	Price May 5	3 month % Change
WCE.VN	Wescan Energy Corp	0.085	0.35	311.76%
PNE	Pine Cliff Energy Ltd.	0.73	1.87	156.16%
VRY	Petro-Victory Energy Corp.	2.14	5.45	154.67%
RZE	Razor Energy Corp	1.05	2.61	148.57%
PEA	Pieridae Energy Ltd	0.42	1.01	140.48%
STEP	Step Energy Services Ltd	1.88	4.33	130.32%
KEI	Kolibri Global Energy Inc	0.095	0.215	126.32%
TIC	Titanium Corporation Inc.	1.04	2.28	119.23%
SOU	Southern Energy Corp.	0.44	0.96	118.18%
AKT.A	Akita Drilling Ltd.	1.19	2.57	115.97%
VUX	Vital Energy Inc.	0.2	0.42	110.00%
ESI	Ensign Energy Services Inc.	2.24	4.25	89.73%
ATH	Athabasca Oil Corporation	1.46	2.58	76.71%
SDI	Stampede Drilling Inc.	0.25	0.44	76.00%
MXR	Max Resource Corp	0.26	0.45	73.08%
AAV	Advantage Oil & Gas Ltd.	6.71	11.26	67.81%
YGR	Yangarra Resources Ltd.	1.94	3.23	66.49%
OSP	Brompton Oil Split Corp.	3.05	5.03	64.92%
SGY	Surge Energy Inc.	6.64	10.53	58.58%
CR	Crew Energy Inc.	3.75	5.94	58.40%
AXL	Arrow Exploration Corp.	0.165	0.26	57.58%
GTE	Gran Tierra Energy Inc.	1.35	2.06	52.59%
SDE	Spartan Delta Corp.	8.19	12.38	51.16%
NOA	North American Energy Partners Inc.	18.67	27.73	48.53%
TOU	Tourmaline Oil Corp.	49.41	72.8	47.34%
BNE	Bonterra Energy Corp.	7.83	11.53	47.25%
BIR	Birchcliff Energy Ltd.	6.93	10.15	46.46%
ITE	I3 Energy Plc	0.315	0.46	46.03%
CET	Cathedral Energy Services Ltd.	0.51	0.74	45.10%
CWC	CWC Energy Services Corp.	0.2	0.29	45.00%
PPL	Pembina Pipeline Corporation	41.09	59.02	43.64%
PD	Precision Drilling Corporation	58.91	84.09	42.74%
MCR	Macro Enterprises Inc.	2.87	4	39.37%
MEG	MEG Energy Corp.	15.49	21.5	38.80%
PEY	Peyto Exploration & Development Corp.	10.52	14.6	38.78%
SNM	ShaMaran Petroleum Corp.	0.065	0.09	38.46%
PPR	Prairie Provident Resources Inc	0.175	0.24	37.14%
PRQ	Petrus Resources Ltd.	1.65	2.26	36.97%
MCB	McCoy Global Inc.	0.78	1.06	35.90%
PMT	Perpetual Energy Inc.	0.77	1.04	35.06%
OVV	Ovintiv Inc	52.35	70.65	34.96%
TGL	TransGlobe Energy Corporation	4.3	5.73	33.26%
CJ	Cardinal Energy Ltd.	5.52	7.35	33.15%
NVA	NuVista Energy Ltd.	9.24	12.25	32.58%
CVE	Cenovus Energy Inc.	19.73	25.87	31.12%
TECK.A	Teck Resources Ltd Cl A	44.4	57.73	30.02%
JOY	Journey Energy Inc.	3.96	5.13	29.55%
SU	Suncor Energy Inc.	36.64	47.38	29.31%
POU	Paramount Resources Ltd.	26.68	34.46	29.16%
VLE	Valeura Energy Inc.	0.45	0.58	28.89%
VET	Vermilion Energy Inc.	21.04	27	28.33%
BTE	Baytex Energy Corp.	5.22	6.69	28.16%
TCW	Trican Well Service Ltd.	3.6	4.58	27.22%
PHX	PHX Energy Services Corp.	5.26	6.69	27.19%
ARX	ARC Resources Ltd.	15.11	18.87	24.88%
S	Sherritt International Corporation	0.53	0.66	24.53%
TOT	Total Energy Services Inc.	6.7	8.3	23.88%
TPZ	Topaz Energy Corp	19.05	23.47	23.20%
IMO	Imperial Oil Limited	54.82	67.33	22.82%
CNQ	Canadian Natural Resources Limited	68.3	82.91	21.39%
KEL	Kelt Exploration Ltd.	5.68	6.86	20.77%
IPO	Inplay Oil Corp	3.5	4.19	19.71%
HEE	Horizons Enhanced Income Energy ETF	10.98	12.98	18.21%
HME	Hemisphere Energy Corporation	1.225	1.44	17.55%
EOG	Eco (Atlantic) Oil & Gas Ltd.	0.52	0.61	17.31%
WCP	Whitecap Resources Inc.	9.12	10.6	16.23%
FRU	Freehold Royalties Ltd.	13.56	15.67	15.56%
CPG	Crescent Point Energy Corp.	8.44	9.46	12.09%
ATD.A	Alimentation Couche-Tard	49.63	55.26	11.34%
ZEO	BMO S&P/TSX Equal Weight Oil & Gas Index ETF	54.77	60.62	10.68%
OBE	Obsidian Energy Ltd.	9.26	10.24	10.58%
PSK	PrairieSky Royalty Ltd.	17.16	18.9	10.14%
SES	Secure Energy Services Inc.	6.22	6.81	9.49%
ERF	Enerplus Corporation	15.41	16.75	8.70%
CEU	Canadian Energy Services & Technology Corp.	2.45	2.64	7.76%
EW	East West Petroleum Corp	0.07	0.075	7.14%
PFC	PetroFrontier Corp.	0.09	0.095	5.56%
GEI	Gibson Energy Inc.	24.33	25.64	5.38%
HWO	High Arctic Energy Services Inc.	1.69	1.78	5.33%
ALLI	Alpha Lithium Corp.	1.02	1.07	4.90%
ENB	Enbridge Inc.	54.72	57.23	4.59%
KEY	Keyera Corp.	30.5	31.84	4.39%
ESN	Essential Energy Services Ltd.	0.475	0.49	3.16%
PIPE	Pipestone Energy Corp.	4.88	5.03	3.07%
IVX	Inventronics Limited	1.9	1.95	2.63%
FA	Fountain Asset Corp.	0.26	0.265	1.92%
SCD	Samoth Oilfield Inc	0.095	0.095	0.00%
REKO	Reko International Group	5	5	0.00%
CRP	Ceres Global Ag Corp.	5.21	5.15	-1.15%
HOG	Horizons Canadian Midstream Oil & Gas Index ETF	9.82	9.67	-1.53%
TWM	Tidewater Midstream and Infrastructure Ltd.	1.35	1.32	-2.22%
TPL	Tethys Petroleum Limited	0.8	0.78	-2.50%
FO	Falcon Oil & Gas Ltd.	0.19	0.185	-2.63%
TVE	Tamarack Valley Energy Ltd.	5.12	4.95	-3.32%
TLA	Titan Logix Corp.	0.5	0.48	-4.00%
DC.A	Dundee Corporation	1.46	1.39	-4.79%
KYS.H	Kaymus Resources Inc	0.1	0.095	-0.05
STMP	Stamper Oil & Gas Corp.	0.36	0.34	-5.56%
PXT	Parex Resources Inc.	27.02	25.44	-5.85%
ORC.B	Orca Exploration Group Inc.	5.34	4.95	-7.30%
VLN	Velan Inc.	9.19	8.5	-7.51%
ASND	Ascendant Resources Inc.	0.22	0.2	-9.09%
PSH	PetroShale Inc.	0.86	0.78	-9.30%
AVN	Avanti Energy Inc.	1.5	1.35	-10.00%
NWX	Newport Exploration Ltd.	0.51	0.455	-10.78%
HWX	Headwaters Exploration	7.51	6.66	-11.32%
SCL	ShawCor Ltd.	5.86	5.11	-12.80%
AXE	Acceleware Ltd.	0.64	0.55	-14.06%
CFW	Calfrac Well Services Ltd.	5.5	4.64	-15.64%
SOIL	Saturn Oil and Gas Inc	3.45	2.89	-16.23%
CWB	Canadian Western Bank	39.09	32.09	-17.91%
LTX	Labrador Technologies Inc.	0.055	0.045	-18.18%
CPI	Condor Petroleum Inc.	0.475	0.38	-20.00%
GIII	Gen III Oil Corp.	1.96	1.56	-20.41%
SRX	Storm Resources Ltd.	6.27	4.91	-21.69%
CKK	Cordy Oilfield Services Inc.	0.045	0.035	-22.22%
PUL	Pulse Oil Corp	0.065	0.05	-23.08%
POE	Pan Orient Energy Corp.	1.3	0.97	-25.38%
DVG	Divergent Energy Services Corp	0.15	0.11	-26.67%
YVI	Lithium One Metals	0.45	0.29	-35.56%
PCQ	Petrolympic Ltd.	0.09	0.05	-44.44%
QEC	Questerre Energy Corporation	0.32	0.175	-45.31%
WRG	Western Energy Services Corp.	0.34	0.18	-47.06%
FARM	Deveron Corp.	0.8	0.41	-48.75%
BBU.UN	Brookfield Business Partners L.P.	59.33	29.46	-50.35%
OYL	CGX Energy Inc.	3.5	1.68	-52.00%
LXE	Leucrotta Exploration Inc.	0.89	0.207	-76.74%
SAH	Sahara Energy Ltd.	0.14	0.02	-85.71%
ERC	Eros Resources Corp.	0.95	0.095	-90.00%

See more of the best oil stocks to buy and more on why oil stocks are the best investment going. And review the stock market forecast for the next 6 months.