With so many oil companies in the mix, Cramer said that there is opportunity to be had by mergers and acquisitions.
But buying stock in companies that might be ripe for a takeover could be a dangerous game.
“To me, while I do expect more consolidation, trying to catch the next takeover is a fool’s errand,” he said. “Buying companies with declining fundamentals is a recipe for losing money.”
This week, National Oilwell Varco purchased Robbins & Meyers, a company specializing in fluids management needed for drilling.
The move sent the buyer’s stock soaring more than 25 percent on the news, and it allowed NOV to raise earnings estimates by as much as 25 to 30 cents per share next year.
The acquisition boosted the stock price of other potential acquisition targets, Gardner Denver and Lufkin .
But Cramer argued that it was far from a sure thing.