Cramer: Oil-Service Stocks the New Safe Haven

This column was originally published on RealMoney on Feb. 27 at 10:46 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

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Looking for a safe haven? Who has pricing power that won't be eroded by this China news? Who has long-term visibility? Cereal companies? Drug companies? Aerospace? Farming? Hardware?

Nah, oil service!

I'm not kidding, these companies have the longest contracts, the most visibility and a fantastic long-term outlook.

I believe it's important to recognize that there is a ton of oil out there but only a couple of companies have rigs that can reach it, most notably Transocean(RIG Quote) and GlobalSantaFe(GSF Quote). We need service companies, and Halliburton(HAL Quote) just announced one of the biggest buybacks -- go read the fine print of the KBR(KBR Quote) exchange. We need seismic and tech and more rigs; that's National Oilwell Varco(NOV Quote).

These stocks have what people want: a long-term view with built-in estimate increases as long-term contracts roll over and as we get better rates -- because with oil above $50, drilling as deep as possible works.