Cramer: Natural Gas Is The New Oil

With no indication that oil prices will substantially drop in the year ahead and the momentum for clean energy building, Cramer said he expects 2008 to be the year of natural gas.

Picking the right natural gas stock takes work, though. It needs to be a company that’s constantly growing and increasing production. It also needs to be looking for gas everywhere – not just in the Gulf.

That’s why Cramer’s natural gas pick is Anadarko Petroleum , an oil and gas exploration and production company that operates all over the world.

Anadarko’s CEO Jim Hackett reaffirmed Cramer’s choice on Thursday’s Mad Money, telling him Anadarko is building its international production and is committed to focusing even more on gas production in the future, as he expects global markets forces will soon call for it. “I don’t think we can ignore natural gas,” Hackett said.

Cramer agrees. Even though natural gas prices have lagged oil, he thinks that’s about to change. And with Anadarko drilling all over the world, ramping production guidance and growing its reserves, it’s Cramer’s favorite way to play this energy sea change.

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