In one of the news announcements yesterday, came word that CNOOC of China is buying Nexen of Canada – an energy exploration company.\u00a0 CNOOC is a $38 billion company and Nexen reported revenues of $6.3 billion in 2011.<\/p>\n

This is a major step for a Chinese company, a major step in the energy industry and a major step for Canada.\u00a0 Consider a few facts compiled from our Global 5000 database.<\/p>\n

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• Canada’s energy assets are substantial. Looking at Global 5000 companies in Canada, right behind Financial Services, Oil & Gas and Mining are the next 2 largest industries representing 27% of the largest companies in Canada. So, as the world thirst for natural resources and energy continues to climb … Canada will get more attention.<\/li>\n
• Looking at growth rates over the past few years, China has grown faster than the rest of the market. So has the Oil & Gas industry as well as the Mining industry. The total Global 5000 grew 11.4% in 2010 and 12% in 2011. China based Global 5000 companies grew 33.5% and 30% in 2011. Oil & Gas firms reported growth of 22% and 24% for those same years while mining companies grew even more at 40% in 2010 and 30% this past year. So, this deal hits right at the heart of a number of growth segments.<\/li>\n
• This is a second big deal by a Chinese company in the North American market — see our article earlier this year<\/a> on the Chinese bank ICBC entering the US market via an acquisition.<\/li>\n<\/ul>\n

  The bottom line here is that China’s economy is huge, its growth — even at lower rates — is still a huge differential and it has a continually increasing need for energy resources. Canadian companies have those resources so we can expect more deals and activity.<\/p>\n

  For more information about The Global 5000 and companies like these that are included, visit the database page.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

  In one of the news announcements yesterday, came word that CNOOC of China is buying Nexen of Canada – an energy exploration company.\u00a0 CNOOC is a $38 billion company and Nexen reported revenues of $6.3 billion in 2011. This is a major step for a Chinese company, a major step in the energy industry and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[138,67,44],"class_list":["post-878","post","type-post","status-publish","format-standard","hentry","category-news","tag-canada","tag-china","tag-energy"],"yoast_head":"\n