The Drillers Can Show You the Future

Maybe it is beginning to dawn on people that oil is controlled by demand and supply, not by Ben Bernanke and the dollar. Maybe it is also dawning on people that all the ethanol in the world doesn't matter, that you could devote all of the corn crop to ethanol and it still won't affect the supply. The dollar has been the most overstated reason for the climb in oil other than the claim of speculation. It's supply and demand, period. Everything else is a dodge.

So the complex, from Arch (ACI - commentary - Cramer's Take) to Schlumberger (SLB - commentary - Cramer's Take), from Foster Wheeler (FWLT - commentary - Cramer's Take) to Occidental (OXY - commentary - Cramer's Take) can't stop ramping.

I just don't understand why there is such resistance to the belief that we are running out of oil. Go read the Exxon (XOM - commentary - Cramer's Take) conference call. These guys should be able to drill and pump like mad, but they can't. There isn't enough out there. And that's Exxon, with more properties than anyone else.

Eventually our nation will realize how ridiculous corn-based ethanol is. They will realize that Devon (DVN - commentary - Cramer's Take) and Chesapeake (CHK - commentary - Cramer's Take) and XTO (XTO - commentary - Cramer's Take) and Anadarko (APC - commentary - Cramer's Take) and Apache (APA - commentary - Cramer's Take) and Southwestern (SWN - commentary - Cramer's Take) are the future, with ACI and Peabody (BTU - commentary - Cramer's Take) as back-up. The stocks are telling you that. The Bunge (BG - commentary - Cramer's Take) and Monsanto (MON - commentary - Cramer's Take) rally is about what ethanol and drought and Chinese demand is doing. It's a sideshow to all but the stocks. Pay attention to the drillers and the nat gas stocks. They are telling the truth, even as the politicians dissemble.

At the time of publication, Cramer was long XTO and Foster Wheeler.

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