Pricey Oil Benefits Infrastructure Plays

Infrastructure comes alive as a great theme of 2008, just like 2007. You know why? With oil up here, there will be so many projects that aren't even on the drawing board that you have to understand the outyears of Foster-Wheeler (FWLT - commentary - Cramer's Take), Jacobs Engineering (JEC - commentary - Cramer's Take), Shaw Group (SGR - commentary - Cramer's Take), Fluor (FLR - commentary - Cramer's Take), KBR (KBR - commentary - Cramer's Take) McDermott (MDR - commentary - Cramer's Take) just get better and better and better.

This has long been my favorite group because of a combination of high energy costs that require new projects and the amazing amount of money that the Middle East sovereign funds have to build new projects.

One of my themes for what I think is going to be a very tough year to make money is to be not once blessed, but twice blessed in secular bull cases. A company like a Shaw has nuclear power as a theme and gigantic infrastructure projects as a theme.

Can't beat that.

Remember there is a trillion dollars worth of projects out there to be let in in the next five years. That money is going to go to just a handful of companies. Like the ag bull market, there simply aren't a lot of infrastructure companies out there, and many of them are too linked to municipal or housing infrastructure.

These don't have that problem.

Random musings: Apache (APA - commentary - Cramer's Take), Devon (DVN - commentary - Cramer's Take), Anadarko (APC - commentary - Cramer's Take), EnCana (ECA - commentary - Cramer's Take), Ultra Petroleum (UPL - commentary - Cramer's Take), XTO (XTO - commentary - Cramer's Take) -- these are the undervalued oil and gas plays because of the terrific trends of clean energy and domestic plentitude.

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At the time of publication, Cramer was long XTO Energy.

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