These Three Can Handle Lower Oil Prices

Article Excerpt

Oil prices have more than doubled in the past couple of years, due to various factors like growing Chinese demand, the Iraq war and a particularly vicious hurricane season this past year. Oil prices could keep rising and we continue to advise you to hold some oil and gas investments. However, energy prices are inherently volatile. After a rise like this, it’s a good idea to focus on well-established oil and gas stocks that can withstand the inevitable price setbacks. Here is our updated analysis of three of our long-time favourites. IMPERIAL OIL LTD. $119 (Toronto symbol IMO; SI Rating: Average) is Canada’s biggest producer of oil and natural gas. It also operates a nationwide chain of retail gasoline stations under the “Esso” banner. U.S.-based ExxonMobil Corp. owns 69.9% of Imperial. Production at many of Imperial’s mature properties in Western Canada is dropping, so it’s investing heavily in new sources of oil. It owns 25% of the massive Syncrude oil sands joint…

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