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A pumpjack clouded in smoke from recent wildfires in Drayton Valley, Alta. on May 17. A stellar run in the price of heavy Canadian crude, much of which comes from the oil sands, is testing investor commitments to environmental, social and governance ( ESG ) principles, forcing would-be buyers to weigh sublime cash flows against human-induced climate change that has contributed to Canada’s worst wildfire season on record. In global oil markets, Canada is best known for its abundance of heavy crude that is thick and sour, and its most commonly quoted price is a benchmark blend known as Western Canadian Select (WCS). Since the start of the year the price of WCS has jumped 16 per cent, while the price of West Texas Intermediate (WTI) oil, the broader North American benchmark, is down 5 per cent. Because WCS has soared, shares of many Canadian energy producers have also jumped – particularly for those that focus on oil-sands production. Shares of MEG Energy Corp. MEG-T -1.85%decrease have gained 25 per cent this year, while shares of Athabasca Oil Corp. ATH-T -4.87%decrease are up 39 per cent. Shares of U.S. behemoth Chevron Corp., meanwhile, are down 14 per cent. Historically, […]
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