On Monday, Cramer said, an oil and gas drilling boom is going on in America, but it’s being obscured by disappointing numbers from two big name drillers, Transocean and Diamond Offshore Drilling. Yet if investors looked at Baker Hughes rig count that came out on Friday, the Mad Money host said, the boom would be obvious. BHI saw the highest level gain in oil rigs in 17 years and a ninth straight weekly gain in natural gas rig use, with the total number of rigs up 28 percent from the previous week.
"These numbers," Cramer said, "are an indication that the boom in the shales are very real and happening all over the place."
He reminded viewers that RIG is offshore and therefore not seeing the boom and DO is very skewed to the gulf, which was down almost 14 percent year over year. They’re simply not representative of what’s happening all over, Cramer said.
Perhaps investors should focus on the companies doing the drilling, the Mad Money host said, players like Carrizo Oil & Gas. This exploration and production company reported a very strong operations update on February 11th. CRZO has a lot of exposure to shales where the boom is happening, with about sixty-thousand acres in Barnett Shale in Northern Texas and just over one-hundred-thousand acres in the Marcellus Shale of northern Appalachia. Plus, Cramer said, the company reported a 20 percent year-over-year increase in production for the fourth quarter. And, Carrizo currently has a backlog of 32.7 net horizontal Barnett Shale wells that are drilled but waiting on completion or for a pipeline connection.
With production ramping and a strong outlook, Cramer said, CRZO is a terrific play on the shale boom in the United States. For this reason he invited Carrizo's CEO Chip Johnson on the show for more insight on the company. Johnson told viewers that he still thinks there's plenty of upside in the oil stocks. Watch the full interview now to find out why.
Cramer's charitable trust owns JPMorgan Chase.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org