So says Tim Parker (www.CommodityHQ.com) in edited excerpts from his original article* entitled A Deeper Look At Canada’s Commodity Industry.  For other commodity news and analysis subscribe to their free newsletter and munKNEE.com’s very own free Your Daily Intelligence Report which consists of  edited excerpts from the “best of the best” financial/economic/investment articles of the day to provide clarity and brevity and ensure you a fast and easy read.

Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Canada’s Top Commodity Exports

“Energy products are the largest of Canada’s exports and, although Canada increased energy product exports to China by almost half from 2008 to 2010, the United States remains Canada’s principal energy destination, importing nearly 12 times more than China.

Save time: Just read the “Best of the Best” articles!

- Sign up here to have all newly posted articles delivered automatically to your inbox

- It’s FREE and includes an “easy unsubscribe feature” should you decide to do so at any time

- All articles are carefully selected and posted in edited form for the sake of clarity and brevity to ensure a fast and easy read

- Don’t delay – sign up here – now!

Canada’s Top Commodity Imports

Canada is the 12th largest commodity importer in the world of which more than half comes from the U.S.

Ways to Play the Market

Below, we outline several ways to make a play on Canada’s massive commodity industry.

• Guggenheim Canadian Energy Income (ENY): ENY is an ETF that seeks to replicate the performance of the Sustainable Canadian Energy Income Index-an index of 200 securities listed on the Toronto Stock Exchange representing the Canadian oil and gas industry.
• IQ Canada Small Cap ETF (CNDA): This small cap fund puts more than 75% of its assets in Canadian firms that fall under the energy and basic materials sectors.

• MSCI Canada Index Fund (EWC): This ETF focuses on broad Canada exposure, but over 45% of its assets are dedicated to the energy and basic materials sectors.
• Gold Explorers ETF (GLDX): A fund that invests in gold exploration companies, nearly 95% of GLDX’s assets are dedicated to Canadian firms.
• Market Vectors TR Gold Miners (GDX): The mega-popular gold mining fund has over 65% of its assets in Canadian companies.
• Pengrowth Energy Corporation (PGH): PGH explores and develops oil and natural gas reserves in Canada. As of the beginning of 2012, PGH had about 4,000 producing and 1,400 non-producing oil and natural gas wells in Alberta, British Columbia, Saskatchewan and Nova Scotia.
• NovaGold Resources Inc. (NG): NG is a miner of gold, silver, copper, zinc and lead ores primarily in Alaska and British Columbia. NovaGold is headquartered in Vancouver.
• TransCanada Corp. (TRP): TRP operates natural gas and oil pipelines in the United States and Canada. It currently owns 57,000 kilometers of natural gas pipelines and nearly 3,500 kilometers of crude oil infrastructure. In addition, TransCanada has interests in power plants with a combined total capacity of nearly 11,000 megawatts.

Who in the world is currently reading this article along with you? Click here

Outlook

In 2011, the value of Canada’s total minerals production increased by just under 25%, reaching a record $50.3 billion. Coal production rose more than 25% while the metals market increased slightly less than 20% due to higher prices for most major metals. This upward trend has been intact for seven of the past eight years. Projections indicate an expenditure of a record $4 billion on exploration and deposit appraisal in 2012.

Conclusion

Canada is the second largest country in the world by land mass. It contains a wealth of untapped natural resources. In northern Canada alone, $100 billion is being poured into diamond mines, uranium exploration, new gas wells and pipeline projects. All of this points to some exceptional commodity trading opportunities in this often overlooked country.

*http://commodityhq.com/2012/a-deeper-look-at-canadas-commodity-industry/

Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

Related Articles:

1. Commodity Trading: Which Option Options (if any) Belong in Your Portfolio?

Commodity investing has been around for decades, but it was only recently that their popularity has spread to the general public. It is now generally recommended that investors set aside anywhere from 5% to 10% of their capital for a commodity allocation, as these hard assets generally offer uncorrelated returns essential to diversification. While many investors utilize stocks, ETFs, and futures to obtain their commodity exposure, options contracts can often be a better alternative to not only your commodity holdings, but for the remainder of your portfolio as well [Let me tell you more about options and also why they might/should have a place in your portfolio]. Words: 995

2. The “Ins” and “Outs” of Investing in Commodities

Commodities have obvious appeal to active investors looking to generate profits from short-term price movements [but while] the volatility of this asset class is ideal for risk-tolerant individuals who actively monitor their positions…commodities may also have appeal to the long-term, buy-and-hold crowd…These potentially appealing attributes come with plenty of risk, [however, as] the path to commodity exposure is full of potential obstacles and pitfalls that can erode returns and lead to a less-than-optimal investing experience. Here are ten rules of thumb that will help you achieve a more successful experience investing in commodity markets. Words: 2871

3. Canadian Oil Sands: World’s Single Largest Petroleum Resource and…

The Canadian oil sands are the world’s single largest petroleum resource at 1.7 trillion barrels. With conventional oil supply decreasing, heavy oil projects such as the oil sands become more attractive economically to meet the needs of growing demand. While environmental concerns about the oil sands remain, the options for plentiful, cost efficient, and clean oil sources are limited.

4. These 10 Charts Should Put Your Mind at Ease Regarding Canada’s Oil Sands

The following charts come straight from the Canadian Association of Petroleum Producers in an attempt to put the benefits and impact of Alberta, Canada’s oil sands into proper perspective from their point of view. Take a look and I think you will be favourably impressed. Words: 540

5. Canada’s Oil Sands to Have $520 Billion Impact on U.S. Economy: Here Are the Facts, State by State

Canada is the largest supplier of oil to the U.S. When the U.S. imports oil from Canada, the spin-off economic benefits are substantial. The interactive map of the U.S. below will let you calculate the economic impact generated in each U.S. state from new oil sands projects in Alberta, Canada. Words: 592

6. A Look at the Canadian Oil Sands: the U.S.’s #1 Source of Supply

The third largest source of oil in the world is the Canadian oil sands and the United States already imports more of it from there than from anywhere else. With oil prices on the rise, the controversial oil sands are likely to become even more economically viable, despite experts’ warnings about environmental risks [and the political and environmental gamesmanship to block the Keystone pipeline project from there to refining facilities in the U.S.]. Below are 12 incredible facts about the oil sands. Words: 408

7. The Oil Sands are NOT the “Tar” Sands and 9 More Interesting Facts

The oil sands in northern Alberta are crucially important to the Canadian economy. People from all over the country are traveling there to find work. The news is filled with controversy over proposed pipelines (the Keystone XL and the Northern Gateway) to carry the oil to export markets. Here are 10 things everyone should know about the oil sands. Words: 878

8. Gold: The Top 10 Holders & Producers by Country– and 23 Investment Options

Gold is one of the rarest metals in the world, and has a long history as a valuable and intensely sought-after element. The precious metal has served as the basis for physical currency for thousands of years, and many monetary systems throughout human history have utilized a gold standard that focused on the precious metal. Exploration and production of gold has become a major industry in regions that maintain significant deposits of the metal, and quests for gold have been the impetus of countless expeditions and discoveries. [Below are a list of the top 10 gold producing countries, the top 10 gold producing companies and a definitive guide as to the multiple options of investing in the metal.]

9. The Top 10 Silver Producing Countries & Companies – and Investment Options

Silver has been an important metal for thousands of years, often used as a medium of exchange or jewelry in ancient times….Today, silver still finds its way into jewelry and coins but it is now also a key ingredient in many ‘modern’ applications as well….Due to this multitude of uses the metal has continued to be a popular investable asset…[as well] as a store of value and an inflation hedge. Below are a list of the top 10 silver producing countries, the top 10 silver producing companies and a definitive guide as to the multiple options of investing in the metal. Words: 2091

10. Is the Abundance of Natural Gas the Answer to America’s Energy Needs?

The shale revolution has come as a surprise to many, but natural gas is now so plentiful and cheap that it could be an energy game changer. This infographic explores natural gas, its properties, natural gas market dynamics, supply forecasts, demand, the shale revolution, and the switch from coal to natural gas.

11. 10 Facts About Global Energy Sources & Consumption – You’ll Be Surprised

Coal, hydroelectric and oil are increasingly in high demand to meet the world’s growing appetite for power. In fact, global energy consumption grew 5.6 percent in 2010, the highest rate since 1973. Discover 10 other fascinating facts about worldwide consumption in this informative slide show.

12. Invest in Natural Gas – Here’s How

[Although] investing in natural gas is an incredibly popular and active sector of the commodity world given its robust growth predictions,…it tends to exhibit violent daily swings with high and liquid volumes. While this can lead to significant losses, for those who play their cards right, trading natural gas can make for a nice short term reward. [That being said,] for the more traditional “buy and hold” investor there are still a number of options that, [while they] may not directly invest in the commodity, offer significant exposure under a safer structure. [In this article I have identified 25 ways to invest in natural gas to help investors pick the correct security for their portfolio]. Words: 1800

13.  U.S. Has 3rd Largest Natural Gas Field in the World – Which Other Countries are Included in the Top 10?

Natural gas is increasingly becoming an important fuel in meeting the global energy needs. Let’s take a quick look at the largest natural gas fields in the world. Words: 300

About FinancialArticleSummariesToday.com (http://www.FinancialArticleSummariesToday.com) Lorimer Wilson is Editor of FinancialArticleSummariesToday.com (F.A.S.T.) and www.MunKnee.com (Money, Monnee, Munknee!) and an economic analyst and financial writer. He is also a frequent contributor to this site and can be reached at editor@munknee.com