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Subtly, Valero Said Something Huge: Jim Cramer

On Tuesday, Valero reported earnings and although the Street cheered the headlines, Cramer was much more interested in what was buried beneath.

"There were many positives in the quarter," said Cramer. However the Mad Money host doesn't want anyone to miss what he calls an amazing morsel: It's this commentary:

"We replaced all imported light foreign crude oils with cheaper domestic crude oils at our Gulf Coast and Memphis refineries. Since we expect U.S. and Canadian crude oils to become increasingly available, we are purchasing options to process additional volumes of these cost–advantaged crudes throughout our refining system."

"In other words, because of the Bakken and the Eagle Ford shales and so many other terrific domestic prospects, one of our major refinery powers no longer needs to import expensive oil from other countries to feed its refineries, and this trend is only going to get stronger," Cramer explained.

Cramer thinks these developments signal a dramatic shift for Valero's shareholders because prices at the American pump reflect the higher cost of the formerly imported crude, which is now touching $100 a barrel.


Henrik Weis | Lifesize | Getty Images

"The difference is monumental and could cause Valero to go much higher as the marketplace takes into account how Valero has become the most aggressive company to take advantage of our newfound, technologically derived oil riches," Cramer said.

And in addition to the potential this presents for Valero shareholders, Cramer said there are two other takeaways.

"The first is that the marketplace is still well behind in recognizing the worth of our domestic oil, particularly with the $100 worldwide crude umbrella," said Cramer.

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"The second is that if we had an energy policy in Washington that actually incorporated our domestic oil, and particularly, our bountiful natural gas into its thinking, we could smash OPEC, clean our skies, right our trade balances, become the cheapest place on earth to do business, and put millions of people to work doing so!"

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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