Heat the oil and butter in a medium pot over medium heat. Add onion, green pepper and garlic cook, stirring, until tender, about 5 minutes.
Add the rice, salt and stir quickly until it is well-coated about 1 minute.
Add the water and bring to a boil over high heat, reduce the heat to low, stir once, and simmer, covered tightly, for 20 minutes. Add the cheese.
Turn off the heat and allow the rice to sit covered for 7 minutes. Fluff with a fork, and serve warm.