Oil Stocks: Plenty of Fuel Left

China’s government “gets it” far better than Washington when it comes to energy policy. To Stephen Leeb, president of Leeb Capital Management and author of The Oil Factor, that’s the real message of the bid by China National Offshore Oil Co. to take over Unocal (UCL ) — a company also sought by Chevron (CVX ).

“They’re doing this because they believe oil prices are heading dramatically higher over the longer term,” says Leeb, who agrees with that forecast. And he adds that, like any astute investor, the Chinese are trying to own as much of such a commodity as they can. In his eyes, the only valid issue is whether CNOOC has been financed in an unfair way.
BusinessWeek Online