Despite the extended pullback in the crude oil space, Schlumberger's conference call gave Jim Cramer some renewed hope that things could be looking up for the sector.
"First, [CEO Paal Kibsgaard] feels that there's genuine restraint among Russia and Saudi Arabia, those are the two most important worldwide producers. Second, he explains that in the rest of world, producers have so dramatically under-invested in the last three years that it will take some time for them to ramp back up as their current fields deplete, leading, perhaps, to more constrained supply and higher prices," the "Mad Money" host said. "But third, and most important in what was an amazing discourse, he said the United States, which only accounts for 8 percent of the global production, is finally beginning to show some rational behavior."
The CEO pointed out that Wall Street, which once was eager to fund deals in the space, has backed off given the widespread declines in oil prices.
"Kibsgaard, in other words, thinks the jig is almost up and that producers who exceed their cash flow will be cut off. If that's the case, if the U.S. spigot finally slows down, then oil can indeed start to go higher," Cramer said.