Melt the butter and oil in a skillet and saut� the rice for about 3 minutes, until the rice begins to brown a little. Be very careful not to burn the rice.
Add the onion and parsley, then saut� for another minute or two. Stir constantly during these two steps.
Stir in the broth, cayenne, and bay leaf. Bring to a boil then reduce the heat. Cover tightly and cook for 15 minutes.
Fluff the rice with a fork and serve.