FALL CITY, Alta.
— Wells Fargo has bought about $2 billion in Alberta’s oil and gas sector, including a major oilfield in the city of Fall City, where the bank has been a pioneer.
The investment by Wells Fargo Financial Services Corp. is part of a larger $20.5 billion in energy projects the bank is making, including its $1.5-billion acquisition of North America’s largest shale gas producer, Total, as well as $500 million in the development of its first liquefied natural gas terminal in the state.
The announcement Thursday came as the company was also announcing a $100-million investment in Alberta Hydro’s long-term planning, a $1-billion expansion of the province’s hydroelectric power system and an investment in a new oilfield.
“Wells Fargo’s investment in the oil and natural gas sector is an important addition to our portfolio and represents a significant investment for the Alberta economy,” said Brad Tackett, vice-president and chief executive officer of Wells Fargo Canada.
“As we expand our portfolio in the energy sector, we are expanding our access to a growing pool of investors, and that is important to the continued development of the oil sands and Alberta’s economy.”
The bank’s investment is part, however, of a broader $19.5bn plan for the oilpatch that includes a $2-billion deal to build a new $7.5 million natural gas processing plant in the Eagle Ford Shale area.
It is also part of the bank’s $4.5-$5 billion investment in Canadian Natural Resources Ltd.
that will help it expand its operations in the Alberta oilpatch.
Wells Fargo is the largest publicly traded bank in Canada and is known for its aggressive spending on investment in emerging markets.
The Calgary-based bank is also planning to invest $10 billion in Canada’s energy sector by 2020, and it is looking to expand its portfolio by as much as $5 billion by 2022.
“This investment is a huge investment for Alberta, and our commitment to investing in Alberta is clear,” said Doug Porter, the bank vice-chairman.
“We have an investment strategy that is built around the oil sector, and we believe that investment is good for Alberta and the Canadian economy.”