Cramer: Drillers Have More Upside

This column was originally published on RealMoney on May 4 at 11:51 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

You can't keep these drillers down, and the reasons for the run vary from the shortage of oil for the international integrateds (just did a video with Keith Lieberthal on this very issue, watch for it on the site soon) to the turn in natural gas prices.

That's good news. There is a whole cohort of natural gas drillers that can move ever higher and there's an equal thrust to own the Schlumberger(SLB Quote - Cramer on SLB - Stock Picks)/GlobalSantaFe(GSF Quote - Cramer on GSF - Stock Picks)/Transocean(RIG Quote - Cramer on RIG - Stock Picks) group.

(I would emphasize Halliburton(HAL Quote - Cramer on HAL - Stock Picks), too, as a laggard, but the contempt it's showing for its shareholders vs., say, Nabors(NBR Quote - Cramer on NBR - Stock Picks) can only be described as frightening.)

We are just now turning in the U.S. If Canada turns, I believe you could see the Oil Service HOLDRs(OIH Quote - Cramer on OIH - Stock Picks) easily breach its high of $168. When it does, the resistance will disappear and a remarkable re-valuation even from these levels will begin.

Simply put: There's a lot more ahead. I would remain a buyer of this very important group.

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