Cramer's 'Mad Money Recap': How to Beat High Oil Prices

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"Instead of freaking out over the price of gasoline, why not make some money from it," Jim Cramer told viewers of his "Mad Money" TV show Monday.

According to Cramer, the stratospheric rise in the price of oil is not being driven by speculators as many analysts and pundits claim.

Instead, he pointed out three reasons why oil is at $135 a barrel. First, the old oil fields are drying up. Second, it's getting more difficult to find new oil and get it out of the ground. And third, the demand for oil is growing every day, especially in China, India and the rest of the developing world.

"It now takes twice as many rigs to pull the same amount of oil out of the ground and now we need even more of it," he said. Because of this continuing trend, Cramer turned his attention to the wildcat drillers, who explore and drill previously untapped areas of the world.

Cramer added Petrohawk Energy (HK Quote - Cramer on HK - Stock Picks) to his ever-growing list of "must own" oil and natural gas stocks, calling it one of the lowest-cost producers of oil and gas in the group.

The company currently boasts 1.1 trillion cubic feet of natural gas reserves, and with new properties being developed in the shale fields of Arkansas and Louisiana, it could add 1.6 trillion cubic feet in its reserves.

Cramer called Petrohawk a $48 stock masquerading as $35 stock. He added the company to his other favorites, including Devon ( DVN Quote - Cramer on DVN - Stock Picks), Southwestern Energy ( SWN Quote - Cramer on SWN - Stock Picks), Apache ( APA Quote - Cramer on APA - Stock Picks), XTO Energy ( XTO Quote - Cramer on XTO - Stock Picks), Chesapeake ( CHK Quote - Cramer on CHK - Stock Picks), Anadarko ( APC Quote - Cramer on APC - Stock Picks) and Ultra Petroleum ( UPL Quote - Cramer on UPL - Stock Picks).

Cramer: If Your Stock Needs Oil, Don't Own It