GO
Loading...

Profit Off Your Pain at the Pump

Don’t blame Wall Street speculators for that $4 a gallon gasoline. The way Cramer sees it the (what seems like) never-ending increase of prices at the pump is simply a matter of supply and demand. The global appetite for oil is up, old fields are running dry, and there haven’t been any new discoveries to replace them.

So there isn’t much average Americans can do about having to empty their wallets to fill their gas tanks. But everyday investors do have options – namely buying stock in those companies digging deep to find new sources of oil and natural gas. These names wouldn’t have worked when oil was at $10 a barrel – looking for oil in hard-to-find places wasn’t worth the money – but at $137 this sector’s firing on all cylinders.

Petrohawk Energy, mainly a nat-gas driller, is a leader among these wildcatters. The company’s one of the lowest-cost producers in the group, Cramer said, behind only Southwestern Energy and Ultra Petroleum, and could be sitting on trillions and trillions of cubic feet of natural gas in Louisiana and Arkansas.

Recent discoveries by other companies in Louisiana’s Haynesville shale sent those stocks higher, boding well for Petrohawk. And production in Arkansas’ Fayetteville shale should be much higher for the company this year than in 2007. The potential for such good business has Cramer thinking HK could climb as high as $48 from its present level of $35.

You’ve heard Cramer say this before: 2008 is the year of natural gas. So his favorites in the sector – Devon , Southwestern, XTO Energy , Apache, Anadarko, Chesapeake and Ultra Petroleum – are all still on his buy list.

Keep checking back for Cramer’s other Wildcatter Week stock picks.





Jim's charitable trust owns Southwestern Energy and XTO Energy.

Questions for Cramer? madmoney@cnbc.com

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

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book