CALGARY – A new study says rules imposed on foreign state-owned investment in the oilsands is having some unintended consequences.
A report by the University of Calgary’s School of Public Policy says the share prices of oilsands firms have suffered since the rules were announced in late 2012.
The biggest impact has been on junior oilsands companies, whose stocks dropped by as much as 50 per cent during the first half of 2013.
Small oilsands companies rely on outside investment to grow their operations much more than their larger counterparts.
In December 2012, the Harper government approved Chinese-owned CNOOC Ltd.’s $15-billion takeover of Calgary-based Nexen Inc., but imposed limitations on further ownership of oilsands resources by state-owned firms.
Joint venture deals, in which a foreign state-owned firm can own a minority stake in a project, are still allowed, but the study’s authors say that type of investment has slowed down as a result of the uncertainty.