Cramer’s ‘Drill, Obama, Drill’ Plays

An “incredible confluence” of catalysts should benefit the oil and gas drillers, Cramer said Wednesday during Street Signs.

First, President Obama announced plans to allow drilling in previously off-limits areas along the US coast. But Cramer also pointed to BP’s pickup of business in Iraq, a market that he thinks has plenty of room left to grow. He recommended oil-service stocks Schlumberger and Weatherford International as plays on the trend.

These are “multiyear trades,” Cramer said, as the price of oil itself won’t slow the drilling. In fact, “Oil could go to $68, and they’re still going to drill.” Crude was trading above $82 on Wednesday.

“Street Signs” was live from Petra, Jordan, today, so the focus was on the Middle East markets, specifically three trends: infrastructure, oil and the region’s youth.

The Middle East is expected to spend $1 trillion on infrastructure. Cramer said he likes Fluor because the company does a lot of business there. Sixty percent of the world’s oil reserves are from the region, and Cramer again recommended WFT and SLB. And then for trading the young Middle East demo, where 65% of the population is under the age of 30, Cramer suggested Pepsico , which has a strong business in Jordan. He also likes Coca-Cola , McDonald’s and Starbucks , too.

Cramer did admit that it’s hard for investors to play individual Middle Eastern markets, so he recommended a related exchange-traded fund or any of the aforementioned derivative plays.

Cramer's charitable trust owns BP, Fluor, Pepsico and Weatherford International.

Call Cramer: 1-800-743-CNBC

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