Industry Divestment By Norway Leads To Slight Blow For Canadian Oil Companies

A slight divestment is being made in Canadian Oil companies due to Norway’s public pension fund.

The fund, known as KLP (Kommunal Landspensjonskasse), dumped stocks last year that drew more than 30 per cent of their revenue from oil sands operations.

On Monday, KLP sold its remaining stakes in Canadian oil companies – saying they do not align with efforts to keep global heating below internationally agreed-upon targets.

CIO of Auspice Capital Tim Pickering tells Mix News while it’s not a significant blow to the industry – it’s still a blow none the less.

“About $33 million US worth of equity positions and $25 million US worth of bonds. In the grand scheme of things, that’s not very much but what it highlights is a continued negative sentiment that I believe is largely unfounded.”

The companies include Cenovus, Suncor, Imperial and Husky.

Pickering notes the provincial government and industry need to do more when it comes to managing the risks associated with the energy sector.

“Make no mistake, the industry also did a poor job managing that message. So, what we’ve got to do now is amend the record and create better awareness for the facts around our oil industry and the environmental aspects.”

Pickering adds while it is a blow, Canada’s oil sands are doing quite well in terms of innovation – especially when compared to other jurisdictions, like the U.S.

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