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 - Get Report) 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 - Get Report) 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. . Follow @BretKenwell