They say that when one door closes, another one opens. With investors wondering where to look for gains in a global equity marketplace that sometimes seems to have had all of its doors simultaneously slammed shut, China may have finally unlocked some deadbolts.
As China's enormous stimulus plan gains recognition as a noteworthy catalyst for economic activity in the region, state-run oil giant CNOOC
Both of these companies have been active exploration partners in the area, so while the choice may not come from out of left field, the scale and longevity of China's commitment to this development program nonetheless makes this an exciting venture for the two U.S.-based companies. In a still larger context, I expect this news to mark an emerging trend, whereby non-Chinese companies will be identified as direct beneficiaries of China's sudden and dramatic shift into an aggressively pro-growth economic stance.
But while the project signifies an open door to oil and gas development near China's shore, doors are rapidly slamming shut on more marginal projects around the world. Particularly with the severity of the global credit crunch, projects that looked very promising when we had $140 per-barrel-oil invite renewed scrutiny below $50. Petro-Canada's
And a one door opens for Anadarko and Devon, another one closes on ExxonMobil
Since investors may find the maze of doors disorienting, I recommend that Fools pay special attention to the doors that lead to China.