Mad Money with Jim Cramer

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Cramer’s Top 10 Natural Gas Stocks

No doubt the widespread use of solar and wind power is ideal, but it’ll be a long time before the mass adoption of those alternative energies is a reality. In the meantime, Cramer says, the US should shift its focus to natural gas.

Emitting 30% fewer carbon-dioxide emissions than oil and 40% less than coal, nat gas is a much cleaner commodity than its two dirty cousins. And the US is sitting on a ton of it: a potential 2 quadrillion cubic feet or more. The drilling company Chesapeake Energy alone has 46 trillion cubic feet of unproved reserve potential, which Cramer said is “enough to supply the US with most of its energy needs for the next 20 years.” Say bye bye to our dependence on foreign oil.

There are other benefits, too, such as job creation. Whether it’s through increased drilling, pipeline building or the switch to nat-gas-fueled vehicles, the economy would see millions of new positions. And what is Cramer’s biggest concern these days – and that of business Buddha Dan DiMicco, Nucor’s CEO? Jobs. Without them, we’ll never pull out of the depression/recession of the past two years.

Now the fun part: helping you to try to make money on the trend. In order for these companies to take off, nat gas needs a little love from Washington. After all, Congress will decide whether or not this fuel becomes a national priority. Even still, though, Cramer predicts the price per thousand cubic feet will rebound to $6 or $7 in 2010 from its present, and low, level of $4 and change. That means a number of key players will benefit. Here are the 10 names that Cramer likes most.

Posted 28 Oct 2009