This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer: The Real Tale of Oil Tape

NEW YORK ( Real Money) -- Does it bother anyone else that just a few days ago we were hearing that the glut in U.S. oil is now going to cause a gigantic widening in the spread between Brent and West Texas and all that's happened since then is that the two have converged?

Does it bother anyone else that not one, but two, major firms upgraded the refiners at precisely the moment when the convergence started?

Has it become perceived wisdom that the oil in this country's just going to become more and more bountiful may actually not be true?

These are all of the issues that need pondering now that West Texas is back to $98 and the move below $90 that so many had been expecting seems to be way off base right now.

I think there's a war going on under the surface of this oil market. On the one hand there's the Mark Papa school of thought. Mark's the amazing oil man who built EOG ( EOG) into the greatest exploiter of the two most important shales of the era: Eagle Ford and Bakken. His company's the fastest growing of the major independents and even as he is retiring, he's still finding oil, including a big prospect in the Delaware Basin of the Permian. Mark's been saying that the era of free money, where more and more oil is found and sold at higher and higher prices, might be over. The big finds are going to start peaking, he believes, and at the same time, the price domestically may no longer be going up because we are producing so much oil.

On the other side is the duo of Scott Sheffield and David Demshur, who believe that the best is yet to come. No, by far the best is yet to come. Pioneer's ( PXD) Sheffield says his company is sitting on the second-biggest oil field in the world after Saudi Arabia: the Spraberry. Even though it was discovered in 1949, it still has far more oil in it that North Dakota's Bakken and the Eagle Ford of Texas. While the judgment does seem on the hyperbolic side, Demshur of Core Labs ( CLB), the foremost reservoir mapping technology company, says it could very well be that big.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Markets

Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs