Dearth of Drilling Will Put a Floor in Oil

You never, ever hear about the supply problem in oil. Never. But if Schlumberger's (SLB - commentary - Cramer's Take) right, we are going to go back to shortage mode, as you can't drill for the big remaining oil fields because they are too expensive at these prices.

In other words, the bottom has to be self-fulfilling as a certain point. Now, this is not the case in natural gas, where so much has been discovered that you can't shut enough in to make stocks like Anadarko (APC - commentary - Cramer's Take) and Devon (DVN - commentary - Cramer's Take) and Apache (APA - commentary - Cramer's Take) huge gainers from here, although they can gain. Nor do I want to jump on the bandwagon for more than a trade for Transocean (RIG - commentary - Cramer's Take) and Halliburton (HAL - commentary - Cramer's Take) and Diamond Offshore (DO - commentary - Cramer's Take) just because SLB's up. SLB's a bad-news rally, in other words -- it was really bad -- but now people think the worst is over. While these stocks are leaders in the market, the idea that you buy a bad-news rally is the idea that the worst may be over.

I don't see that being the case.

Still, without more drilling, we are not going to be staying down here in oil prices.

I have been buying BP (BP - commentary - Cramer's Take), which has been slammed because it trades in London. Makes sense to buy. So do ConocoPhillips (COP - commentary - Cramer's Take), Occidental (OXY - commentary - Cramer's Take) and Marathon Oil (MRO - commentary - Cramer's Take).

The stocks have more upside.

At the time of publication, Cramer was long BP and ConocoPhillips.

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