He added that while low prices are bad for natural gas producers, investors must always keep in mind that low prices are great for utilities and those that use gas, like the chemical companies.
In the "Executive Decision" segment, Cramer sat down with Randy Foutch, chairman and CEO of Laredo Petroleum (LPI - Get Report), an independent oil and gas producer that's expected to grow its oil production by 25% this year. Laredo came public in December 2011 and is trading only slightly above its initial IPO price.Foutch said the new horizontal drilling technologies have fundamentally changed the energy business in America. He said that we've always known that shale formations were in areas like the Permian basin because previously they've had trouble trying to drill past them. But now, he said, wells came be drilled horizontally into these formations and stimulated to produce more oil than the "easy" oil that laid beneath them. Foutch said Laredo purchased its first land rights in 2008 in an area where only one well stood. Today, he said, there are 35 to 40 wells in that area and all are performing very well. When asked about the company's expansion plans, Foutch said Laredo remains very disciplined. He said the company has many options for financing its growth including joint ventures, public financing and the debt markets, which means it is not capital constrained, but the company is still taking a slow and sustainable path towards expansion. Finally, when asked about where he sees the price of natural gas in the future, Foutch said the industry is finally able to bring enough supply to meet just about any demand, so he expects prices to increase but not as fast, nor as volatile, as they have in the past. Cramer said he's a fan of Laredo as the oil and gas revolution marches on.