Brazil's state-controlled oil company controls 95 percent of the oil production in the country, which has the second largest oil reserves in South America behind Venezuela.
The company, known as Petrobras, has been increasing oil production rapidly over the past few years to help satisfy rising demand inside the country.
It's also using its refining capacity, combined with Brazil's long growing season and high energy sugar crop, to make plays in the red-hot ethanol market.
Moreover, shares are reasonably priced: The P/E, based on 2007 earnings projections, is 8.5, versus 12.1 for ExxonMobil and 10.2 for Chevron.