Final answer:
The financing Petro Canada is seeking from a commercial bank for building an additional oil rig would be classified as secured, long-term debt financing, as it represents a substantial investment that is normally backed with collateral.
Step-by-step explanation:
Petro Canada seeks to obtain a loan from a commercial bank to build an additional oil rig. This type of financing is categorized as long-term debt financing that is usually secured. When a firm like Petro Canada opts for borrowing from a bank, it typically requires a large sum for a substantial investment, such as constructing an oil rig, which is not a short-term expenditure. Furthermore, these loans would normally be secured with collateral to provide the bank with a form of protection in case the loan is not repaid.
In the context of financial capital markets, firms may raise capital through various methods including borrowing through banks or issuing bonds and selling stock. Borrowing from a bank or issuing bonds is fundamentally a form of debt financing, which involves regular interest payments regardless of the company's profitability. However, this allows the firm to maintain control over its operations without dilution of ownership which would occur if stock were issued.