Cramer's 'Mad Money' Recap: Peru Play

While BPZ only produces 500 barrels of oil a day currently, the company is expected to produce up to 8,000 barrels a day by the end of 2008 and 11,000 barrels a day by the end of 2009.

Cramer said that while BPZ is currently 100% vested in oil, the company also plans to expand aggressively to go after finding and producing natural gas.

A Missed Opportunity

Cramer welcomed Rep. John Peterson (R., Penn.) to the show to discuss his proposal to extend offshore drilling from 50 miles to 200 miles off the coast, and thereby open up potentially billions of gallons of oil reserves to the country.

The bill, defeated today in the Subcommittee on Interior and the Environment, would be a boon for the offshore drilling complex, said Cramer.

Approval of the legislation would benefit Cramer favorites such as Transocean (RIG Quote), National Oilwell Varco (NOV Quote), FMC Technologies (FTI Quote) and Schlumberger (SLB Quote).

Peterson said he was surprised at the outcome of today's vote. With the country already 60% dependent on foreign oil, he said every vote against increased production is a vote away from energy independence. He explained that with oil at $135 a barrel, policies against more drilling just don't make sense.

Peterson said he doesn't subscribe to the philosophy that if the U.S. drills for more oil, it will focus less on alternative energy sources. He supports investment in both increased fossil fuel production as well as investment in wind, solar, nuclear and other alternative sources.

Peterson said that prices for oil currently are where they are without any major disruption of supply. That could change drastically in the event of severe weather, a terrorist attack, or other major event, he said.

Am I Diversified?

Cramer evaluated the portfolios of callers to see if their portfolios have what it takes.

The first caller's portfolio included: Apple (AAPL Quote), Disney (DIS Quote), Emerson (EMR Quote), Nike (NKE Quote) and Blue Nile (NILE Quote).

Cramer said he's not a fan of Blue Nile, but blessed the portfolio as diversified.

The second caller's top holdings included Ford (F Quote), Johnson Controls (JCI Quote), Eaton (ETN Quote), Trinity Industries (TRIN Quote) and Manitowoc (MTW Quote).

Cramer said both Ford and Johnson Controls are too much in the auto business and recommended selling one for either a healthcare or defense stock.

The third caller had Apple (AAPL Quote), Abbott Labs (ABT Quote), Arch Coal (ACI Quote), Morgan Stanley (MS Quote) and John Deere (DE Quote) as their top five stocks.

After careful examination, Cramer said he liked all of these companies very much and owned Abbott Labs and Morgan Stanley for his charitable trust Action Alerts PLUS. He called the portfolio "crystal clear diversification."

Mad Mail

In this segment, Cramer told a viewer that he's still a buyer of Ingersoll-Rand (IR Quote), despite the recent departure of the company's CFO last week.

Sudden Death

Cramer was bullish on Apache (APA Quote), Kaydon (KDN Quote), Petroleo Brasileiro (PBR Quote) and AES Corp (AES Quote).

Lightning Round

Cramer was bullish on Molson Coors (TAP Quote), Costco (COST Quote), Wal-Mart (WMT Quote) and Energy Conversion Devices (ENER Quote).

Cramer was bearish on CSX Corp (CSX Quote), Royal Bank (RBS Quote), Washington Mutual (WM Quote), Home Depot (HD Quote), Onyx Pharmaceuticals (ONXX Quote), Hudson City Bancorp (HCBK Quote), Trina Solar Ltd (TSL Quote) and Intercontinental Exchange (ICE Quote).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

For more of Cramer's insights during the Lightning Round, click here.