James Cramer wants you to be an oil bull.

Cramer told listeners on his

"RealMoney" radio show Monday that it wasn't the death of Saudi King Fahd that drove oil prices to

a new high. Cramer said the Saudi king was sidelined for years by ill health, so his effect on crude prices had been diminished anyway.

But Cramer warned that the late king's policy of keeping oil prices low will live on for years. Cramer said Saudi Arabia's efforts have dissuaded American oil companies from expanding their exploration and production operations.

"When you listen to the big driller conference calls, you hear that we have not spent enough time and money to explore ourselves," Cramer said.

The companies that have invested in the necessary rigs will reap the rewards from the decades of underinvestment. Among the winners will be midlevel companies like

EnCana

(ECA) - Get Report

and

Cimarex

(XEC) - Get Report

, both of which Cramer is long.

Plus, one of Cramer's newest faves is

National Oilwell Varco

(NOV) - Get Report

, which was recommended to him by

RealMoney.com

energy watcher Chris Edmonds.

An analyst at Sanford Bernstein said that

Burlington Resources

(BR) - Get Report

may be a better play than EnCana, Cramer said, adding that he believes that EnCana is on its way to becoming a household name.

Contract driller

Grey Wolf

( GW) should also go higher as drilling rates go up, Cramer said.

"Most of the analysts following oil have no idea how underinvested we are in oil," Cramer said. "Who's laughing now at Goldman Sachs after their super spike call of $100 a barrel? They were pilloried for being too bullish."

Cramer said we need to find more oil, conserve more oil and stop listening to folks like

Exxon Mobil

(XOM) - Get Report

CEO Lee Raymond, who recently forecast that oil prices were on their way down.

Cramer's Callers

Image placeholder title

Cramer explained to a caller that

Annaly Mortgage

(NLY) - Get Report

makes its money on the spread between short and long rates. The spread, however, has narrowed as the

Fed

keeps raising short-term rates, while long-term rates remain in place.

However, Cramer said he believes Annaly is a well-run company and when you add back the dividend, it has been a decent performer. And since long rates will soon go up because the Fed should be done sooner rather than later, it would be wrong to give up on Annaly now.

Cramer said

Sirius Satellite Radio

(SIRI) - Get Report

may announce a strong quarter Tuesday, but he said any gains will be balanced by the satellite radio broadcaster's typical hideous quarterly loss. So Cramer said you may get a better chance to buy it later.

Therapeutic and diagnostic device makers like

AngioDynamics

(ANGO) - Get Report

are richly valued, said Cramer in response to a caller's inquiry. But they have a lot of momentum, he added, so they could fall even after reporting solid earnings. Cramer advises investors to treat these as long-term investments, perhaps picking some shares up after a selloff.

"Some stocks are so hot that when they report, they have to blow off the steam," Cramer said. "Don't approach these as earnings stories but as long-term medical plays."

Cramer wanted to clarify the differences in his investment theses for a caller who likened

Whole Foods

( WFMI) to

Sears

(SHLD)

.

"Whole Foods is about dramatic revenue growth," Cramer said. "Sears Holdings is the opposite. It is not an earnings or growth story. It's a bet on Eddie Lampert's management ability."

Cramer also reminded investors "not to press their bets" on high-dollar amount stocks like Sears.

In tech-land, Cramer predicted the price war will continue between

Advanced Micro Devices

(AMD) - Get Report

and

Intel

(INTC) - Get Report

, but this won't hurt Intel too much. Intel will weather the competition without a problem. Worldwide demand is the key and that seems quite strong, Cramer said.

Cramer told another caller that

Con Agra

(CAG) - Get Report

is damaged. If you want a recession-proof stock, then swap into

P&G

(PG) - Get Report

. The food group is getting tough and Con Agra is problematic in Cramer's view.

Finally, Cramer encouraged a caller to buy some

Boeing

(BA) - Get Report

which he thinks will take off, just like the planes it builds.

At the time of publication, Cramer was long Boeing, Cimarex, EnCana, Intel and Sears.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict."