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April 10, 2008

Dear Fellow Investor,

It's not a surprise to anyone that oil prices are sky-high in the United States. Or that they aren't expected to deflate any time soon. The U.S. Energy Department reported this week that oil prices for 2008 are expected to average about $101 per barrel in the U.S.

That's an average, mind you, meaning that the cost to fill up your tank will likely jump even higher as we reach the peak of the summer driving season.

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Commuters are being pinched at the pump. Summer vacation plans are being cramped. And the prices of practically everything are moving higher as well. Despite the higher costs, the demand for petroleum in the U.S. continues to rise.

Americans aren't trading in their vehicles for bikes. Actually, there are more people around the world trading in their bikes and walking shoes for vehicles.

Oil demand in emerging countries is growing at an even faster rate.

Just this week, the Chinese government announced that the country's consumption of oil is expected to increase 62.5% by 2020. That means China's oil consumption would rise from 346.6 million tons this year to 563 million tons in 2020, growing by 4.5% annually until 2010, and then 3.3% annually until 2020.

This boost in China's oil consumption is being driven by the increase in drivers and automobile sales as disposable income continues to rise in China. And as the country's infrastructure has developed, China's transport industry has grown, shipping goods across the country and to other parts of the world.

These industries are expected to continue to grow in coming years, increasing China's oil consumption demands. To prepare for this, China's oil producers are planning to drill new oilfields with reserves of over 100 million tons each within the next three years.

My China Strategy subscribers are already profiting from China's increasing demand for oil. We recently locked in a sweet 58% gain in our Chinese crude oil processing company. To find out the next big winner from China's growing oil demand, sign up for China Strategy.

A Rare Exception to the Rule

While we may have already banked some nice gains in a Chinese oil company, there are plenty of other opportunities for profits in this sector. One of my favorite China Strategy companies -- a leading driller and producer of oil -- has already tripled for my subscribers. This company's core fundamentals are right on the mark, and I expect a great deal of upside in the coming year. Join China Strategy today to get in on this remarkable company's next leg up.

One of the keys to this company's success is its status as a State-Owned Enterprise (SOE). This may surprise you since I am not a fan of SOEs. I generally recommend that investors avoid almost every SOE stock that they encounter. This is because SOEs are not well-run businesses, typically plagued by management corruption and bad returns. Plus, private companies usually offer more competitiveness and flexibility and are run by entrepreneurs with a desire to succeed.

But this leading oil company is a rare exception to my rule. This oil company has benefited from being owned by the Chinese government -- it has been given monopoly drilling rights to the South China Sea. This area contains one of the biggest untapped underwater oil and natural gas reserves in the world. Talk about having a leg up on the competition.

Plus, along with having a monopolistic position and government backing, this company has a respectable management, making it an attractive investment.

I have been following this company for years and recommended it to my China Strategy subscribers two years ago. We have a 150% gain so far, but this is just a drop in the bucket of profits I'm expecting from this company. To begin profiting from this leading oil company, sign up for China Strategy today.

Don't risk missing the next leg up on this leading oil company that has made China Strategy subscribers 150% richer. Plus, in my upcoming China Strategy issue, I plan to recommend a new oil play that is handsomely profiting from China's growing oil consumption demands. To get the name of my current recommendation and to ensure that you don't miss out on the next 100%+ winner in this sector, join China Strategy today.