Cramer's Wall St. Confidential: Oil Might Be Well

People "have to take a stand" and look at which companies have long-term contracts, which is why Cramer said he likes RIG, and which ones could be bought by BP, which is why he likes Devon Energy (DVN Quote). Moreover, people should watch out for which ones are currently being thrown away because of lame refining margins or negativity, which you're seeing in a stock like ConocoPhillips (COP Quote), Cramer said.

"People should understand that there can be value-creation when you have a multiple as low as a lot of the oil stocks are," he said. "These are companies with gigantic cash flow that can do a lot of things, but can't do them overnight."

Another reason people find oil and energy "so fascinating" is because of the geopolitical aspects involved, Task added. When he mentioned how Hugo Chavez's plan for possibly nationalizing more of Venezuela's economy could be an issue for BP and ConocoPhillips, Cramer said, "Right now we're in a mode where no matter what happens, it seems it's viewed as negative for oil pricing."

The situation in Venezuela and the fact that BP's production is down are all "signs of things that are longer term," Cramer continued. And rather than focusing on long term, the market wants to focus on what's going on right now.