This Day On The Street
Continue to site right-arrow
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Jim Cramer's 'Mad Money' Recap: Opportunity Knocks

Stocks in this article: ESVHALEXXINUEXOM

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK (TheStreet) -- Opportunity is knocking off the coast of Louisiana, Jim Cramer told his "Mad Money" viewers Monday on location from the deck of an Ensco (ESV) off-shore oil rig.

Cramer said the revolution in oil and natural gas has taken what was once considered an old and tired oil field and infused it with new life, thanks to new technology. He said the oil and gas renaissance is a solid, long-term theme that investors can't count of for years to come. No matter the woes in Russia or Europe or the slowdown in China, there will always be a thirst for oil somewhere, Cramer said.

That means great things for a host of oil and related stocks, including Ensco, which manages the rig Cramer was standing on; to Halliburton (HAL), who helped engineer it; to Energy 21 (EXXI) that sells the oil it produces; to companies such as Nucor (NUE), which is building a new steel plant to take advantage of the cheap fuels it produces.

Executive Decision: John Schiller Jr.

In his first "Executive Decision" segment, Cramer sat down with John Schiller Jr., chairman and CEO of Energy 21, to talk about the rig he was visiting.

Schiller said that despite being the second-largest old field in the Gulf, the area where they were standing has only seen two wells drilled over the past nine years. He said while the field may not have been profitable for Exxon Mobil (XOM), its former owner, for Energy 21 it's a gold mine. While Exxon needed to produce at $10 a barrel, Energy 21 is perfectly happy drilling at $20 a barrel.

When asked more about operating the field, Schiller noted that new technology in every aspect of drilling is making the company's operations more efficient and profitable. Horizontal drill was invented in the Gulf, Schiller reminded Cramer, and with new imaging technology Energy 21 is finding oil from 3,000 feet below the surface to 18,000 feet and in some places even down as far as 24,000 feet.

Turning back toward Wall Street, Schiller said Energy 21 has been aggressively buying back its stock between $24 and $25 a share as it can make a lot more money than that over the long term.

Cramer said Energy 21 is the perfect example of how America's oil and gas industry is creating an exciting future for our country.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs