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ConocoPhillips’ $17.7 billion selloff of most of its Canadian business to Cenovus Energy Inc. accelerates the Canadianization of the oilsands. This isn’t an international retreat any more, it is a vote of non-confidence in Canadian energy versus other opportunities.

And it may not be over. Chevron Corp. and Total S.A. could be next in line to cash out from the oilsands, according to investment bank Tudor Pickering Holt & Co.

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“Chevron’s position does seem non-core and it could redeploy proceeds into the Permian” in the U.S., according to a report to clients. “Total has already sold some of its Fort Hills position and we wouldn’t be surprised if it sold down further.”

On the other hand, the firm notes that Exxon Mobil Corp. is likely to stay put because of its large exposure through its affiliate, Imperial Oil Ltd., as will BP PLC, whose oilsands holdings are integrated with its Whiting refinery in the Chicago area.



With expectations that energy prices will be more volatile in the future, international companies are betting on projects that can be ramped up quickly, and Canada’s oilsands have become too long a game to fit the new environment, said John Brussa, chairman of the Calgary-based law firm, Burnet Duckworth & Palmer LLP, and a director of six oil and gas companies.