Cramer's 'Mad Money' Recap: Pump Fiction

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"Expensive oil is here to stay and is not going away any time soon," Jim Cramer told "Mad Money" viewers on Wednesday.

So, instead of crying and panicking, investors need to find something to buy.

"Since high oil is here to stay, I will explain the soup-to-nuts of bringing oil out of the ground to where it is used. Who pumps it? Who has the drills? And who has the ships?" Cramer said.

Cramer believes that the real question is ... how do you profit from the oil patch?

The first thing is the drilling, he said. You need wellhead equipment -- specialized subsea equipment.

If you want to buy a rig, the only place to buy it is National Oilwell Varco(NOV Quote). They are rig builders.

Once you have a rig, you'll need someone to operate it. That's when you'll look to Nabors Industries(NBR Quote) to help you.

They operate the rigs around the globe, said Cramer, whose charitable trust Action Alerts PLUS owns the stock.

For shallow-water drilling, you need Rowan Companies(RDC Quote), which makes jack-ups, the rig/barge combo for shallow-water drilling.

Also needed, said Cramer, is GlobalSanteFe(GSF Quote), a company that has a $7 billion order-book backlog and just announced a $2 billion buyback.

To drill for oil, you must have a drill bit. Cramer likes Smith International(SII Quote) for that product.

"They are bit players in the drill bit business," Cramer said, but he still believes in their product. In addition, the company announced a 20-million share buyback program, thus providing a great safety net for the stock price in a tough market.

Once you have the drill bit, it needs to be connected to the rig and then lubricated. That will require piping, he said.

For drill pipes, you want to own Grant Prideco(GRP Quote). "It's not a pure play in piping, but it makes [the] best product," Cramer said.