Big Oil set to pounce in Alberta: expert

More liberal U.S. rules on measuring oil reserves will be the catalyst for an international takeover binge in Alberta’s oil sands, says a top strategist at Bank of Montreal. The U.S. Securities and Exchange Commission is now deciding whether to modernize rules dating from the late 1970s that many in the oil industry criticize as unnecessarily conservative.

Donald Coxe, chairman and chief strategist with Chicago-based Harris Investment Management Inc. and BMO’s global portfolio strategist, said yesterday that he believes the SEC will loosen its rules — freeing major oil companies to aggressively pursue acquisitions in the oil sands.

“I believe there will be a disappearance of the publicly traded companies, once the SEC comes out with its rulings,” he said in a conference call yesterday. “I believe Big Oil is going to want to go in and buy these companies.”

Globe and Mail