The Trump administration has been acquiring Canadian rare earths companies to counter Beijing’s dominance. Trilogy Metals tripled after the U.S. government bought a 10% stake. Lithium Americas and MP Materials also cut deals with the U.S. government. Private U.S. investors are now buying Canadian Oil & Gas companies as global oil prices decline.

U.S. funds now own 59% of Canadian oil and gas companies, up from 56%. Canadian ownership has declined to 34%. The shift is due to Canada’s increased openness to fossil fuel investments under Prime Minister Mark Carney, contrasting with former PM Justin Trudeau’s clean energy focus.

The completion of the Trans Mountain Pipeline expansion has boosted confidence in Canada’s oil and gas sector. The pipeline has a capacity of 890,000 barrels per day, carrying crude from Edmonton to Burnaby for global markets. Canada’s Oil Sands have a lower breakeven point compared to U.S. shale, making production cost-competitive globally.

U.S. shale production costs are rising due to drilling in more complex areas. Analysts predict costs could increase from ~$70 to $95 per barrel by the mid-2030s. Many U.S. oil producers need prices above $65 to turn a profit on new drilling. Larger producers may have lower breakeven points, while existing wells remain cash-flow positive at lower prices.

Read more at Yahoo Finance: U.S. Funds Tighten Grip on Canada’s Oil Patch