--- type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39475524.md" description: "Li Ka-shing made another successful bet!At the latest earnings conference, Li Ka-shing's eldest son casually remarked:"Our oil production has approached 1 million barrels per day, which is higher than the daily output of some countries."This raises questions: Where did Li Ka-shing get 1 million barrels of oil per day? What exactly does that mean?Placed on the global oil production ranking, this output could make it into the top 40, exceeding the daily oil production of the United Kingdom, Malaysia, and Indonesia!Why does the Li family have so much oil? How exactly was his oil empire built?This story has to start 40 years ago.To build a Li family oil empire, Li Ka-shing began his layout 40 years ago.In 1986, due to the U.S. shale oil revolution, global oil production surged, international oil prices fell into a slump, dropping below ten dollars a barrel. Many oil companies were operating at a loss, struggling to survive.At this time, Li Ka-shing decisively entered the market, starting to bottom-fish!He acquired a 52% stake in Canada's Husky Energy for a super low price of 3.2 billion Hong Kong dollars.This acquisition laid the cornerstone for the Li family's entry into the oil industry.Why was Husky willing to sell? There are two important reasons:First, international oil prices were indeed too low at the time, and Canada's oil mainly consisted of heavy oil and oil sands, with excessively high extraction costs. The oil business was unprofitable, and it was incurring huge losses. Husky Energy's stock price plummeted 70%, its assets severely shrank, and it faced operational difficulties.Second, Canadian law stipulated that only Canadians could acquire local energy companies. Li Zeju happened to have obtained Canadian citizenship, allowing him to bypass the local legal restrictions.For Li Ka-shing, he only believed in two things:One, there is no best company, only the best price. Husky's market value had shrunk by 70% at the time, already an extremely low price.Two, he believed that with technological breakthroughs, the extraction costs of Canada's heavy oil and oil sands could definitely be brought down.Facts have proven that Li Ka-shing's vision was sharp, and his prediction was completely correct!Light crude oil like that in the Middle East, you drill a well and the oil comes out by itself, with extremely low extraction costs.Canada's oil mainly consists of two types:One is heavy crude oil. To extract it, you first have to inject water to dilute it, then separate the bitumen before it can be pumped out.The other is oil sands, which adhere to sand and gravel. They require water injection and then distillation to be separated, making the process difficult and costly.However, with continuous technological advancements, separation efficiency has increased, scale has grown, and costs have dropped all the way to about 40 dollars per barrel.This turned Canadian oil into a super money-printing machine!After Li Ka-shing acquired Husky Energy, he did not stop.In 2020, Husky merged with another Canadian energy giant, overnight becoming one of Canada's three major oil giants, producing 750,000 barrels of oil per day.And Li Ka-shing became the largest shareholder, holding a 29.4% stake." datetime: "2026-03-24T10:02:40.000Z" locales: - [en](https://longbridge.com/en/topics/39475524.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39475524.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39475524.md) author: "[浩浩小课堂](https://longbridge.com/en/profiles/19784218.md)" --- # Li Ka-shing made another successful bet!At the lat… ### Related Stocks - [00013.HK](https://longbridge.com/en/quote/00013.HK.md) - [HCM.US](https://longbridge.com/en/quote/HCM.US.md)