Cramer has a plan to make sure the U.S. never again suffers $4 gasoline. Barack Obama should, as one of his first acts as president, build storage facilities – tankers, tanks, whatever is needed – and buy a vast reserve of oil at these low prices.
Let’s face it, $34 crude just isn’t going to last. So the new president needs to take advantage of oil’s tremendous decline and buy as much of the commodity as the U.S. can hold, Cramer said. Drilling doesn’t make economic sense at these levels. But we can buy oil on the open market right now and store it for later use.
That, of course, is the problem. We don’t have any available space. So Cramer wants Obama to initiative a storage build-out, putting to work companies like Chicago Bridge & Iron, Jacobs Engineering and Fluor to get us what we need. (While these stocks won’t earn returns based on Obama’s expected stimulus package, Cramer thinks they will if the president-elect follows this plan.)
With this massive strategic reserve, Washington would then have the ability to reduce the price of oil at will should the cost per barrel get too high, as it was earlier in 2008, simply by releasing the reserves.
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