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Cramer Quick Take: My Top Oil Picks

NEW YORK (TheStreet) -- With crude oil prices surging over the past couple of weeks, TheStreet's Jim Cramer tells Debra Borchardt a couple of solid ways to play oil.

Although crude production is at some of the highest levels in years, consumption is down. But does this mean that oil prices will fall, or will they continue to head higher?

Cramer said he thinks that the use by many companies of crude oil as an inflation hedge might have pumped up prices a bit.

He also added that on the conference call Schlumberger's (SLB) management said consumption, particularly by China, is likely higher than many think and that it wasn't pumping as much oil as it could.

U.S.-based companies have been reporting record profits as well, due to the international exposure that WTI crude now has, making the United States an exporter of much more oil than in previous years.

Cramer added that he doesn't expect crude oil prices to contract soon and that Brent crude will likely remain elevated for quite some time.

For exposure, he said that the Action Alerts Plus portfolio just added to its Anadarko (APC) position.

Cramer also cited Schlumberger as having the year's single best quarter so far. He pointed to its expanding margins, increased revenue, improving technology and expansion into new markets as reasons to buy.

Cramer concluded by telling investors to buy Schlumberger, even at these levels, and that he also likes Anadarko going forward.

-- Written by Bret Kenwell in Petoskey, Mich. .

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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