This time last year, oil was an ugly three-letter word that ignited major selloffs on Wall Street. Now, as crude begins an eerily familiar climb on hopes of an economic recovery, one fund manager recommends cashing in on its steadfast global demand.

Transocean (RIG), the world's largest offshore drilling company, is a good buy, according to Chris Trompeter, managing director at Tradition Capital Management who points the contractor’s versatility and depth as reasons that make it portfolio-worthy.

“We do believe when the global economy picks up strength the demand for oil is going to rise,” he said. Oil demand edges up 1% to 2% a year, according to Trompeter, with many emerging countries needing more petroleum as they develop.

The company, which has been operating for more than 50 years, provides offshore drilling and boasts the largest fleet in the world. It is also a leading provider of drilling management services worldwide and controls nearly 38% of the deep-water drilling market.

 “A lot of our big fields in the world are considered mature and to meet the increasing demand for oil, we are going to have to drill in more difficult geologies particularly offshore like in Africa and Brazil,” Trompeter said.

And despite recent legislation to reduce the nation’s dependence on oil with the passage of fuel economy standards, Trompeter says global demand will not wane.

“Those CAFE are going to take a long time to begin to have an impact, so I don’t think it’s an issue.”

“We are only one small part of the picture, you have other parts of the world that are emerging markets that are becoming developing and their demand is moving faster than ours.”

Trompeter admits the Houston-based company’s stock is tied loosely to the price of crude leading to some volatility, he says the impact is minimal. “Even with oil prices having come down from $140 and even getting below $40 and now back around $60, this company is earning  $11, $12 per share.”

At the beginning of May the company reported its quarterly earnings dropped to $2.93 to $942 million compared to $1.15 billion the same period a year ago.

Trompeter, who describes his team as longer-term, fundamental investors, says Transocean is undervalued. “The stock has a had a very sharp recovery and in the next couple of months it will be worth significantly more than where it is today.”

Crude oil has been on an upward swing increasing 12.33% during the last six trading days.