Dear Fellow Investor,

Oil prices are once again on the rise! In the past week, crude prices hit an all-time high of more than $93 per barrel. At this level, that translates to a 12-cent increase in the average price per gallon of gasoline. As a nation, we've seen a 35% increase in gasoline prices since August alone! We can thank increased tensions in the Middle East and decreased supplies in the U.S. for the price spike, but what can we as investors do about it?

Buying a hybrid car or bicycling to work isn't an option for everyone, so when you're trying to combat rising prices at the pump, you have to get creative. That's exactly what we do here at Inside China Dispatch -- we find ways to invest in profitable trends so that we can increase our wealth and purchasing power. We can't control the price of oil, but we can certainly profit from its scarcity.

China Strategy members have already more than tripled their money in one energy play. With the 229% in profits they've made so far, they aren't too concerned with paying a few more cents at the pump. Can you say the same? Click here to get the name of this company and learn how you can earn similar profits with China Strategy.

Today I want to take a look at this business and how it's benefiting from low oil inventories and China's incredible growth.

The Best Oil Play in China

Longtime readers of Inside China Dispatch know that one of my cardinal rules for investing in China is to avoid bloated and corrupt state-owned enterprises (SOEs). Most SOEs are inefficient and don't stand a chance competing against more effective private businesses run by entrepreneurs who have a burning desire to succeed.

But there are exceptions to every rule. Some SOEs make good investments, and I actually have active buy recommendations on five of them in my China Strategy portfolio. What sets these five SOEs apart from the rest of the pack is their superior management, their operations in high-growth and heavily regulated industries, and their special support from the government in Beijing.

My top recommendation to profit from skyrocketing oil prices is actually an SOE. It's a well-managed oil exploration and production monopoly sanctioned by the Chinese government. This company is one of the three main oil and gas companies in China, but carries the distinction of being the only one permitted to conduct exploration and production activities offshore in conjunction with foreign governments and companies.

Beat the Market with China Strategy

It's impossible to have a winning China strategy without energy stocks. Energy is an important part of my China Strategy portfolio -- in fact, shares of my top energy company have jumped 24% in the past month alone! Click here to become a member, and I'll give you a FREE copy of my special report, "China: Bull in the Energy Shop." This report will give you all the information you need to start profiting from energy right away.

It also has a special government-granted power to acquire up to 51% interest in any offshore oil and gas discovery in China's jurisdiction at no cost, even when the discovery is made by a foreign company. With an increase in new oil and gas deposits found in the South China Sea by international companies, this company gains new energy assets without having to pay a dime. Talk about a competitive advantage!

This company is also one of the few SOEs with American-style corporate governance (which means, in particular, financial transparency and freedom from the corruption that often plagues other SOEs). Its CEO is a USC-educated engineer trained as a manager at Phillips Petroleum, and nearly half of the company's board members are outside independent directors. All board meetings are conducted in English, and the company takes a much more open policy than other SOEs.

New Streams of Revenue (and a Higher Share Price!) on the Horizon

Our offshore drilling heavyweight also recently opened its first wholly owned gas service station in Huizhou, in Southern China's Guangdong Province, one of China's most prosperous areas. The company has gotten approval to open 20 more stations in the city, where its biggest refinery is located. It plans to open as many as 200 filling stations throughout China. I believe such a move will help this monopoly capitalize on the explosive growth in car purchases in China.

In addition to its oil business, the company is currently building China's first offshore wind power plant in the Bohai Sea off the northern Chinese coast. The project will have a total capacity of 1.5 megawatts. This is part of the company's plan to become a more diversified energy conglomerate, focusing on downstream petrochemicals, oil retail and new sources of renewable energy. In today's current energy environment, diversified income streams and alternative energy offerings is an excellent idea for any energy company.

Sponsorship

Boost Your Profits with Energy In order to "fuel" China's staggering growth, the country needs oil -- and lots of it! That's why one of the best areas to invest in is China's energy industry. In my free report, "China: Bull in the Energy Shop," I'll give you details on my three top China energy plays as well as one area of the energy industry that you need to stay away from. Don't let this powerful trend pass you by! My three energy picks have earned us a combined total of more than 420% so far! Join us today and get instant access to my free report so that you can begin making similar profits in your own portfolio.

And to top things off, as a top Chinese blue-chip company, this business is a household name in China and is a must-own stock in any diversified Chinese portfolio. But believe it or not, shares of this company aren't available on the Chinese domestic A-share markets!

That means many Chinese individual investors will buy the company's H-shares on the Hong Kong Stock Exchange. (As you may recall, the Chinese government recently began allowing investors in China to buy Hong Kong-listed shares.) Fortunately for us at China Strategy, the ADRs that we own are backed by Hong Kong shares. As a result, strong liquidity will push shares even higher in the coming months.

Don't let this stock's next big run-up pass you by! Join us at China Strategy today and I'll give you specific buy instructions for this oil play, which I've rated as a "top buy" in our portfolio for the last two consecutive months. With oil prices skyrocketing to record highs, you can't afford not to own the best oil company in China.

P.S.We own more than just one winning oil stock in our China Strategy portfolio. Yesterday alone, shares of another one of our oil companies shot up 10.5%! Click here to become a member of China Strategy, and for a limited time only I'll give you a free copy of my special report, "China: Bull in the Energy Shop." This report will tell you exactly how to play China's explosive energy demand. But you must act quickly -- this offer expires soon. Join us risk-free today!