politics is telling us something China knows QE3 is a foregone conclusion .With that we will see oil spiking back to 100 and making it that much harder on Chinese energy starved companies. As soon as QE3 is announced, and if the dummies in Congress can avoid the fiscal cliff , we can be rocking and rolling again.
Malaysia took out Progress. I spoke with mgmt at Penn West last week and they told me there are bevy of interested parties always scanning their portfolio too. It is not just China, but all of Asia that is energy starved. They know that if the cliff is avoided and or if Romney wins it wil be a boom to the oilpatch . The Chinese are one thing, HIGHLY OPPORTUNISTIC. They know they have alimited window to buy and after a few more take overs in Canada, we might see a moratorium on investment or a a political backlash as no one is keen on China controlling our energy policy. I look for the Koreans to make a big deal soon. And I am of the opinion Talisman or Penn West or Canadian Oil Sands are all prime candidates.
I am of the opinion the next deal will be more like Progress with a company bought over that is more gas weighted. This provides a " pump" for Harper to ram through the LNG pipeline and it will drive up the mid tier companies in value, where there are potential 1 million more jobs to be created there . When there is strong job creation at high wages, its hard for even the leftist NDP to oppose that and have any credibility.
We will see at least three more deals in the next month in the space.
The next race wil be the expansion of LNG terminals built in the Americas. You snooze you lose , Harper gets it and the squabbling of Congress gives him a head start Harper has a majority, WEstern money and political power, he will act FAST.