Click here for an archive of Cramer's "Mad Money" recaps.

"Expensive oil is here to stay and is not going away any time soon," Jim Cramer told "Mad Money" viewers on Wednesday.

So, instead of crying and panicking, investors need to find something to buy.

"Since high oil is here to stay, I will explain the soup-to-nuts of bringing oil out of the ground to where it is used. Who pumps it? Who has the drills? And who has the ships?" Cramer said.

Cramer believes that the real question is ... how do you profit from the oil patch?

The first thing is the drilling, he said. You need wellhead equipment -- specialized subsea equipment.

If you want to buy a rig, the only place to buy it is

National Oilwell Varco

(NOV) - Get Report

. They are rig builders.

Once you have a rig, you'll need someone to operate it. That's when you'll look to

Nabors Industries

(NBR) - Get Report

to help you.

They operate the rigs around the globe, said Cramer, whose charitable trust

Action Alerts PLUS owns the stock.

For shallow-water drilling, you need

Rowan Companies

(RDC)

, which makes jack-ups, the rig/barge combo for shallow-water drilling.

Also needed, said Cramer, is

GlobalSanteFe

(GSF)

, a company that has a $7 billion order-book backlog and just announced a $2 billion buyback.

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To drill for oil, you must have a drill bit. Cramer likes

Smith International

( SII) for that product.

"They are bit players in the drill bit business," Cramer said, but he still believes in their product. In addition, the company announced a 20-million share buyback program, thus providing a great safety net for the stock price in a tough market.

Once you have the drill bit, it needs to be connected to the rig and then lubricated. That will require piping, he said.

For drill pipes, you want to own

Grant Prideco

( GRP). "It's not a pure play in piping, but it makes

the best product," Cramer said.

Once you drill down, you need to control the flow of oil and prevent blowouts. For that, Cramer likes

Hydril

( HYDL).

The company makes the wellhead equipment that controls oil pressure. The company beat its most recent earnings estimates by 9 cents a share and has a big buyback in progress.

Chain Reactions

Next in the value chain is

Amcol International

(ACO)

. Amcol makes bentonite, which lubricates the drill bits, an essential ingredient in the extraction process.

Once companies actually start operations, they typically rent the equipment they require rather than purchase it. That's because many pieces of hardware are not needed continuously.

For tool-rental stocks, Cramer believes that either

Weatherford International

(WFT) - Get Report

or

Superior Energy Services

(SPN)

are good stocks to own.

Cramer recommends

FMC Technologies

(FTI) - Get Report

for offshore drilling technology.

When the well turns dry and the site needs to be decommissioned,

Tetra Technologies

(TTI) - Get Report

is the company to buy. Wall Street estimates for this stock just keep going higher and higher, Cramer said.

Am I Diversified?

The first caller to ask Cramer about a portfolio owned

National Oilwell Varco

,

Essex Corp.

(KEYW) - Get Report

,

I-Flow

( IFLO),

Emcor

(EMKR) - Get Report

and

Englobal

(ENG) - Get Report

.

Cramer liked National Oil Varco as a good oil-sector play and Essex as the best counter-intelligence vehicle in the market. Cramer was also keen on I-Flow, which manufactures medical-device pumps, as well as Emcore's semiconductor business.

However, it was Englobal that caught his ire. Cramer called the company a second-tier oil-services company.

Given that the caller already had exposure to the oil sector, Cramer recommended switching out into a bank, or a consumer products company like

Johnson & Johnson

(JNJ) - Get Report

and

Pepsico

(PEP) - Get Report

.

The next caller owned stock in

Valero Energy

(VLO) - Get Report

,

Tim Hortons

(THI)

,

JDSU

(JDSU)

,

Goldman Sachs

(GS) - Get Report

and

Crystallex

( KRY).

"The bottom line is that I like what you have, Cramer said. "Crystallex and JDSU are both speculative, and I'd get rid of one."

Lightning Round

Bullish

Cramer was bullish on

Microsoft

(MSFT) - Get Report

,

Pantry

(PTRY)

,

Valero Energy

,

Nordstrom

(JWN) - Get Report

,

Abercrombie & Fitch

(ANF) - Get Report

,

Qwest

(Q)

,

Southwestern Energy

(SWN) - Get Report

and

Eastman Chemical

(EMN) - Get Report

.

Bearish

Cramer was bearish on

XM Satellite Radio

( XMSR),

Delek

(DK) - Get Report

,

Carpenter Technologies

(CRS) - Get Report

,

NYSE Group

(NYX)

,

Level 3 Communications

(LVLT)

,and

Eastman Kodak

( EK).

For more of Cramer's insights during the most recent Lightning Round, click here.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

At the time of publication, Cramer was long Halliburton, Microsoft and Nabors Industries.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on Mad Money are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."