If you want to play Canadian oil short-term, look at a company with Brent oil exposure, not Canadian where companies suffer oil discounts on the market. That said, look at Vermillion or Royal Dutch Shell.

He’s not a huge commodities fan, but he does own Royal Dutch Shell, which is a global expert in putting together large projects like LNG Canada. It is a long-term player. The fact that a skilled, major global player is driving LNG Canada is one of the important causes for optimism for the project. Has a history of being one of the least indebted oil and gas companies. They have also avoided the types of accidents that have plagued other oil companies. Yield 5.4%.

Would this be a defensive position in the portfolio? Not sure if this is a defensive stock. He doesn’t own any non-Canadian oil company because there are many good ones in Canada. He prefers Canadian companies and consumer staple companies for a defensive position. 

This company is very well run with an A+ credit rating. They are profitable at $50 oil and the refinery business is profitable. It still is a commodity based company so there is risk.

The class B shares have a Dutch withholding tax on dividends, which makes class A shares more valuable.  Integrated energy stocks have under-performed.  He is not in love with energy.  Russian sanctions may actually induce Russia to produce more, putting downward pressure on oil prices.  He would lean more to E&P and drillers instead.  

He thinks it is a good hold.  He thought the Saudis would have raised oil prices above $70 to support the IPO of Aramco.  However, the US shale producers are not allowing that to happen.  This company is a good hold if you like the dividend.  It is better than holding a Canadian energy stock, where markets continue to go down.  He is unsure about what is their future.  Yield 5%.