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Cramer’s Watching Energy Stocks: Chevron, Devon, Pioneer

Energy consultant Rusty Braziel tells Jim Cramer that increases in oil production, prices, and natural gas imports are good for the industry.

Increases in oil production, prices and in natural gas imports are signs of a healthy petroleum industry, Jim Cramer’s viewers on Mad Money heard from Rusty Braziel, founder and executive chairman at RBN Energy. The conversation came during a recent Executive Decision segment. RBN Energy is a fundamentals analytics company known for its energy markets consultancy.

Prices are rising, which Braziel said is allowing oil producers to pay down debt and get ready for the next wave of drilling. Oil production has risen 600,000 barrels a day in the U.S. over the past six weeks. Earlier this year, there were also a lot of DUCS, or drilled-but-uncompleted wells. Many of those wells are now completed and coming online. Drillers can make some "serious" money at these levels, Braziel added.

Check out Cramer’s investing ideas and trading strategies for energy companies on Real Money.

Cramer said recently on another episode of Mad Money that investors would do well to keep an eye on crude oil. As prices near $100 a barrel, Cramer said, “Chevron  (CVX) - Get Report, Devon Energy  (DVN) - Get Report, and Pioneer Natural Resources  (PDX)  only become more attractive."

On Wednesday, oil futures gained more than 4%, supported by a drop in crude stocks at the Cushing, Okla. storage hub to the lowest level since early 2020. Also on Wednesday, the Energy Information Administration reported U.S. crude inventories rose by 2.1 million barrels for the week ended July 16, marking the first weekly rise in nine weeks.

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As for the natural gas market, Braziel said that U.S. exports are up to 10 billion cubic feet per day and there is now a lot of demand for LNG exports, far more than last year at this time.