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Warren Buffett’s move into Suncor says more about his faith in Canadian oil sands than in the company itself.
Warren Buffett’s move into Suncor says more about his faith in Canadian oil sands than in the company itself.
(TODD KOROL/REUTERS)

Against all odds, the oil patch is waking up

What a difference a year makes. Twelve months ago, the energy sector was in woeful straits. Oil producers were being forced to sell at deep discounts to the benchmark Texas West Intermediate crude price. Oil sands production risked being locked in by a lack of pipeline capacity. Fracking had created a completely unexpected natural gas production boom in the U.S. Access to the Asian markets was being blocked by opposition to Enbridge’s proposed Northern Gateway pipeline. The whole sector, which is so critical to Canada’s economy, was in a mess.