A.T. Financial Newsletter
MUTUAL FUNDS
industries,also contribute to the Canadian economy in ways you might not realize. The industry employs some 25,000 workers. The majority of those jobs are in Alberta, Ontario, and Saskatchewan, but 29% are spread across the rest of the country.1

Carrying increasing volumes of oil and gas doesn't just boost the coffers of the pipeline companies. Significant benefits can be expected in ancillary industries, as well. Companies that produce oil and gas will benefit from enhanced access to domestic and international markets. Refineries, petrochemical plants, and distribution companies also stand to benefit.

Resourceful investing
For retail investors, resource-based mutual funds provide a convenient way to access the resource sector. Fund choices range from broad-based Canadian equity and balanced funds that have modest exposure to the sector, to those that focus exclusively on the energy sector and natural resources.

If you're interested in this exciting sector, we can help you sift through the available funds to find solutions that are right for your portfolio.
1 Canadian Energy Pipeline Association (cepa.com).
2 The Guardian, "Keystone XL oil pipeline - everything you need to know," Jan. 31, 2014.
3 Government of Canada, National Energy Board, "Canadian Energy Dynamics 2013 - Energy Market Assessment."
Profiting from pipelines
Laid end to end, there are enough natural gas and liquids pipelines in Canada to circle the earth 2.5 times.1 That's an impressive statistic that helps explain why crude oil, natural gas, and the pipelines that carry them are expected to contribute $130 billion to Canada's GDP over the next 30 years.1 And that doesn't even include the potential growth from the major pipeline projects currently in development.

The Keystone pipeline, for example, will stretch almost 2,700 km from central Alberta to the Gulf of Mexico if completed. The Keystone XL portion would provide an exit route that could facilitate a doubling of the Alberta oil sands' current production.2

So while pipelines might be a hot potato politically and environmentally, they're also a potentially rich investment offering for mutual fund investors.

Super natural resources
In a recent poll, 87% of respondents said that oil and gas development are vitally important to the Canadian economy, while 53% ranked the sector as the most important.1 That attitude is a reflection of just how robust this sector is.

Canadian crude oil output is projected to rise to 4.9 million barrels per day by 2020, up significantly from the 3.2 million produced in 2012.1
On the natural gas side, new technologies are on the cusp of giving Canadian companies the ability to unlock previously inaccessible gases (including ethane, propane, and butane) trapped in shale rock formations. Called “fracking,” it has been a contentious issue for environmentalists, but that hasn't stopped its use. Quite the contrary: In the U.S., the use of these techniques has sparked a 32% increase in ethane production since 2008.3

Piping-hot opportunities
As new stores of oil and gas come online and global demand for energy climbs, pipelines play a key role. Moving all of that oil and gas to buyers across Canada, the U.S., and as far away as China is key to the industry's long-term profitability.

Pipelines, and their satellite
Saturating our economy with potential
Just how vital are the oil and gas sectors to the Canadian economy?
As you can see,they are very vital indeed.
1 Canadian Association of Petroleum Producers, Basic Statistics (capp.ca)
2 Canadian Energy Pipeline Association (cepa.com)
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