China's Got a Fever

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

In most countries, 9% GDP growth is a galloping rate. For China, however, this figure marks a 7-year low, and has prompted acute concerns about social stability. The country's leadership has responded with a stimulus plan that will change the world.

Based on the targets of this spending -- roads, railroads, ports, etc. -- I agree with my colleague Chris Barker that this action relights the torch for commodities. Chris pointed to CNOOC (NYSE: CEO  ) as a way to play the stimulus, and a recent bit of news strengthens that suggestion.

A CNOOC representative today revealed a plan to invest $29 billion in the South China Sea through 2020. This is one of the world's most prospective deepwater basins, and the statement sends a strong signal about China's commitment to investing in oil for the long haul. This is reassuring in a period of plunging crude prices, and jives with some other major oil players showing signs of life upstream.

I've eyed CNOOC's deepwater prospects before, and Petrobras (NYSE: PBR  ) has bubbled up as a potential partner. Other firms already prospecting the South China Sea include Devon Energy (NYSE: DVN  ) , Anadarko Petroleum (NYSE: APC  ) , and Newfield Exploration (NYSE: NFX  ) . If you're not interested in going all-in on the China offshore oil story with CNOOC, those E&Ps could give you some exposure, while keeping you rooted here at home.

Of course, a host of oilfield servicers stands to benefit as well. Atwood Oceanics (NYSE: ATW  ) , for example, has a future Chinese drilling commitment under its belt, and subsea systems supplier Cameron International (NYSE: CAM  ) has a growing presence in the country.

CNOOC is a Motley Fool Global Gains recommendation. Atwood Oceanics is a Stock Advisor selection, and Petrobras is an Income Investor pick. Drill into any of our newsletters, free for 30 days.

Fool contributor Toby Shute doesn't have a position in any company mentioned. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 25, 2008, at 12:26 AM, aiyoung wrote:

    China's Got a Fever... and the only prescription... is more cowbell!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 782124, ~/Articles/ArticleHandler.aspx, 11/30/2015 10:57:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Toby Shute

Today's Market

updated Moments ago Sponsored by:
DOW 17,789.64 -8.85 -0.05%
S&P 500 2,087.75 -2.36 -0.11%
NASD 5,124.40 -3.13 -0.06%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/30/2015 10:40 AM
CEO $110.70 Up +2.87 +2.66%
CNOOC, Ltd. CAPS Rating: ***
APC $61.24 Up +0.53 +0.87%
Anadarko Petroleum… CAPS Rating: ****
ATW $15.76 Up +0.27 +1.74%
Atwood Oceanics CAPS Rating: *****
CAM $68.34 Up +0.30 +0.44%
Cameron Internatio… CAPS Rating: ***
DVN $45.73 Up +0.86 +1.92%
Devon Energy CAPS Rating: ****
NFX $38.21 Down -0.11 -0.29%
Newfield Explorati… CAPS Rating: **
PBR $4.82 Down -0.11 -2.23%
Petroleo Brasileir… CAPS Rating: ***