Oil prices were sent higher this week, as a rebellion in Libya caused concern about crude supplies. The concerns are overblown, Cramer said Friday, especially since the largest discovery of oil was recently made in North Dakota and Montana.
Known as the Bakken shale, it is estimated to provide 24 billion barrels of oil, according to oil producer Continental Resources . The U.S. oil reserves amount to 20 billion barrels, so Cramer thinks this find could double the amount of oil in the USA. Here's how Cramer suggests trying to make some money off of it:
Hess : This integrated oil company discovered the Bakken shale in 1953. It owns 90,000 acres there and in the year ahead, plans on investing $1.8 billion in it.
EOG Resources : In the year ahead, EOG plans to run 10 rigs and drill 100 new horizontal wells in the Williston Basin, which includes the Bakken shale. While the company recently reported positive earnings results, Cramer prefers Hess to EOG.
Continental Resources: This producer owns more than 855,000 acres of the Bakken. The Bakken is its main growth engine.
Whiting Petroleum : With 580,000 acres in the Bakken, Whiting only continues to grow its properties. In 2011, 74 percent of its budget is dedicated to developing its Bakken assets.
Brigham : Historically, this company has focused on the Gulf Coast, West Texas and Anadarko Basin. It now has 370,000 acres in the Williston Basin and is in the process of developing it. On Thursday, the company reported a 272 percent year-over-year increase in production in the Bakken.
Oasis Petroleum : This oil company became public in June 2010. It owns 300,000 acres in the Bakken shale, so Cramer thinks it's an interesting spuculation.
There are also a lot of indirect ways to possibly profit from the Bakken, Cramer said, like through oil service and drilling companies. For his best picks in that area, watch the video.
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