Cramer's Best Plays on Higher Oil Prices

Unrest in the Middle East and Libya continued to support the price of oil, although prices slipped later in the session amid profit taking, and some concerns with weak durable goods orders in the U.S. The situation in the Middle East is not much different than it was a few weeks ago, yet Cramer noted oil prices continue to climb on events in that region.

It seems oil can't help but go higher. For that reason, Cramer likes Chevron and ConocoPhillips . The best plays on higher oil prices, however, are what he called the "3 North Dakotans" — EOG Resources , Whiting Petroleum and Continental Resources . All three companies have holdings outside North Dakota, but each produces a considerable amount of oil there. EOG produced 17 million barrels of North Dakota crude in 2010, Whiting produced 13.7 million barrels and Continental Resources produced 12 million barrels.

North Dakota, Cramer said, is an "amazing story." The Peace Garden State produced 113 million barrels of oil in 2010, which is 46 million more barrels of oil than what it produced three years ago. Cramer thinks it's oil production is only in its infancy, as many of its fields are just now starting to come on line. He thinks they could be producing more, if only there was a network of pipeline to transport the oil out of state. [Check out Cramer's best play on the demand for pipeline here.]

The "North Dakotans" produce much of their oil from the Bakken shale, which is one of the largest finds of oil in U.S. history. Stretching from North Dakota to Montana along the Canadian border, it accounts for more oil than all U.S. reserves combined. Cramer thinks these three companies will only continue to profit from this oil-rich part of the former Dakota Territory.

"If you want the huge wherewithal of a major integrated oil with those terrific dividends and stability, then EOG, Whiting and Continental Resources are not for you," Cramer cautioned. "But if you want growth and companies that can capitalize off the outrageous and steady increases in oil prices that you see virtually every day, these three are it."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

CNBC.com contributed to this report

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
    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