Cramer on Trump's energy pledge: There are not millions of jobs that can be created

Trump: Will cancel job-killing restrictions
Trump: Will cancel job-killing restrictions

CNBC's Jim Cramer questioned President-elect Donald Trump's pledge to create millions of jobs by removing restrictions on American energy.

On Monday, the president-elect made his first major public remarks since his election victory. In a video from his transition team, Trump said he would "cancel job-killing restrictions on the production of American energy — including shale energy and clean coal — creating many millions of high-paying jobs." The president-elect didn't say what restrictions he would lift or how that would result in millions of jobs.

But Cramer said Tuesday that Trump's plan for employment in the energy industry may not come to fruition. He admitted that coal in the U.S. is still the baseline fuel, but not for long. With the Environmental Protection Agency phasing out coal plants and natural gas remaining cheap, natural gas will be the baseline fuel in five years, Cramer said.

"There are no millions of jobs that can be created. There's just not," Cramer said on "Squawk on the Street." "One of the reasons is because the EPA has made a mandate that all of the utilities are following — which is the phaseout of the 40-year plants that were built when Jimmy Carter called us the Saudi Arabia of coal."

Cramer said Trump could attempt to augment the remaining coal plants or scrap them and build natural gas. He added that Trump may have an opportunity in creating a "tremendous number" of jobs involving transportation of oil and natural gas.

"Look, if the Gulf of Mexico were economic, yes, you would have more drilling," he said. "But were stuck in a world where President-elect Trump does not control the price of oil. Natural gas is very cheap. Coal, can you bring it back? Maybe to ship it away."