Energy sector gained on Monday
Crude oil surged higher on Monday, June 20, and supported the prices of crude oil–related companies. On June 20, the United States Oil ETF (USO), the Energy Select Sector SPDR ETF (XLE), and the PowerShares DB Oil ETF (DBO) rose by ~2.1%, ~0.87%, and ~2.2%, respectively.
Canadian Natural Resources ramps up production
Canadian Natural Resources (CNQ), one of the leaders in oil and gas exploration, announced its plan to ramp up production by drilling new wells. Canadian Natural Resources notes that it plans to increase its capital expenditure budget by $50 million to drill new oil wells in Western Canada. This capital will be used to drill 139 oil wells, which produce new heavy oil, new light oil, and thermal oil.
This move by Canadian Natural Resources is due to the recovery of oil prices from February’s lows to the $50 level. At 12:38 PM EDT, Canadian Natural Resources was trading at $30.05, a gain of ~2.2%. Since the beginning of 2016, Canadian Natural Resources has gained more than 35%.
At the same time, Total S.A (TOT), one of the leaders in the integrated oil and gas industry, was trading at $48.29, a gain of ~2.7%. According to Patrick Pouyanné, the CEO of Total, the company has significant plans to invest in what it calls “green assets.”
In the next 20 years, Total plans to invest 20% of its assets in low-carbon business. The recent acquisition of Lampiris and Saft Groupe is included in Total’s plan to increase its green assets”.