Protecting the pipeline price: Cramer

Justin Solomon | CNBC

The price of crude has been drowning for the past month and it's is taking down the energy sector with it. Crude oil closed at a two-year low on Tuesday, plunging 24 percent from its high this year.

So where does that leave the stock of a natural gas company that is key to the energy space, but is caught amid the troubling trends of oil?

Jim Cramer is taking a closer look at Cheniere Energy to determine if this market has finally reached a bottom. Cheniere's stock has been torn to pieces, down 25 percent in the past month. The question remains: Did the stock deserve a beating, or could this be a rare buying opportunity?

On Tuesday, Cramer spoke with Charif Souki, the visionary chairman and CEO of Cheniere Energy, to find out where this company is headed and whether the stock can hold its head above the murky waters of the market.

Cramer last chatted with Cheniere in April, and even with a serious market rout this month, the stock is still up 11 percent since that time because Cheniere has taken the lead over competitors by exporting natural gas to the rest of the world.

"Since we last spoke, a few things have happened. We are drilling mostly for oil in this country. So now gas is an associated product, so the price of gas does impact us on whether we are going to continue to produce gas and oil or not," Souki said.

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The "Mad Money" host notes that the gas market in this country is very different than the rest of the world, it's not really competitive with oil. So where does that leave the price of oil in the future?

Souki stated, "I think the price of oil could go to $70, and maybe even lower. You need to look at will the U.S. export oil or not, because we seemed to be saturated with staying in the United States right now. The infrastructure simply cannot take the oil anymore from production to the refineries. We have saturated the ability to move one place to another."

Cramer has always said that long term growth stocks are the key to the energy space. Though it may seem that with the price of crude that the great North American renaissance is over, he still thinks Cheniere is a winner for the long term. It's just a matter of the bulls having some strong hands, and protecting America's pipelines.

Call Cramer: 1-800-743-CNBC

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