Li Ka-shing is not afraid of losing the Panama port? His sharp business acumen is undeniable.

During the performance communication of Cheung Kong Group on March 19, Li Zeju revealed that the daily oil production of his group has approached 1,000,000 barrels. This figure not only surpasses the daily production levels of sovereign countries such as the UK and Malaysia but also ranks prominently among global oil-producing countries. This phenomenon has sparked widespread skepticism and curiosity: when exactly was Li Ka-shing's oil empire established?

In 1986, the global oil market fell into a deep slump due to oversupply, with international oil prices dropping below $10 per barrel. At that time, the Canadian energy industry, primarily focused on heavy oil and oil sands resources, suffered severe damage, with high extraction costs leading to massive losses for many companies. It was amidst this downturn that Li Ka-shing made a decision that shocked the business world at the time: to bottom out.

According to relevant financial media reports, Li Ka-shing's Cheung Kong Holdings acquired 52% of Canada's Husky Energy for approximately HKD 3.2 billion. The reason this deal was able to be completed was mainly based on two key factors: first, Husky Energy's share price plummeted by over 70% due to low oil prices and asset characteristics, resulting in a historically low valuation; second, Li Ka-shing's son, Li Zeju, had obtained Canadian citizenship at the time, cleverly circumventing Canadian laws regarding foreign investment in domestic energy companies.

Li Ka-shing's investment logic at the time was clear and ruthless: there are no absolutely perfect companies in the market, only absolutely suitable prices. He firmly believed that with advances in exploration and refining technology, the high-cost bottlenecks in extracting heavy oil and oil sands in Canada would eventually be broken. It has been proven that this prediction that spanned cycles was highly forward-looking.

Entering the 21st century, with the maturation of separation technology and large-scale extraction, the extraction cost of Canada's oil sands significantly decreased, gradually falling to around $40 per barrel as a breakeven point. This means that as long as international oil prices remain within a reasonable range, the Canadian heavy oil assets, once seen as a 'burden', have transformed into a source of high-profit cash flow.

Li Ka-shing did not stop at the early acquisitions. In 2020, Husky Energy merged with another Canadian energy giant, Cenovus Energy, and the new entity became one of Canada's three major oil giants, with daily production climbing to 750,000 barrels. At this time, the Li Ka-shing family still held about 29.4% of the merged company, maintaining their position as the largest shareholder.

An even more critical strategic move occurred in 2025. According to reports from the Asian Financial Times and several mainstream financial media outlets, during the window when international oil prices adjusted back to $60 per barrel, Li Ka-shing, through his Canadian subsidiary, invested HKD 44.3 billion to complete the acquisition of the UK-based MEG Energy.

This counter-cyclical operation once again demonstrated his investment philosophy of 'what others abandon, I take'. Just six months later, affected by the escalation of geopolitical conflicts in the Middle East, international oil prices soared above $110. At this point, the daily production of the oil portfolio under Li Ka-shing surpassed 900,000 barrels, approaching the 1,000,000 barrels mark. Based on this calculation, his energy sector's daily revenue exceeded $100 million, with annual revenue expected to break $40 billion.

Why does Li Ka-shing seem unafraid of the potential loss of the Panama port?

In fact, the issue of control over the ports at both ends of the Panama Canal is essentially a projection of great power games in the Latin American region. China's position on the Panama Canal issue is firm. As China's overall national strength rises, any unilateral action to forcibly deprive Chinese-related enterprises of their legitimate rights will face tremendous diplomatic and economic resistance. With the state intervening, what does Li Ka-shing have to worry about? Sometimes, you can criticize Li Ka-shing's character, but his sharp business acumen is something you have to admire.