Chevron (CVX - Get Report) is the stock to buy, not Exxon Mobil (XOM - Get Report) , if oil prices continue to go up, TheStreet co-founder Jim Cramer said Friday.

While Exxon Mobil reported a 63% earnings drop on Friday, what's important is that the company took 33% out of its capital expenditures while doing well with its overlooked chemicals division, Cramer said. He also noted the company has been a great cash manager, boosting its dividend earlier this week, although it did lose its AAA rating, leaving just Johnson & Johnson  (JNJ - Get Report) and Microsoft  (MSFT - Get Report) with that distinction. "It was impressive," he said of the company results.

Cramer acknowledged that Chevron's stock has had quite a run so he understands those investors who want to take profits because the company "didn't handle things as well as Exxon." He also noted that Chevron invested a lot in the Gulf of Mexico that's really starting to hurt the company. But he believes that if oil prices go up, "Chevron is the one to be in, not Exxon."

With oil prices on track for their best month this year, Cramer credits various factors, including China producing 300,000 barrels per day less, expectations that the U.S. will drop 1 million barrels per day and import more, Iran not adding as much as people think and Schlumberger (SLB) cutting back its work for Venezuela, which isn't pay its bills. "We're probably out a million-and-a-half barrels," he said.

Cramer said Charif Souki, the founder and former CEO of Cheniere Energy LNG who predicted oil prices would be cut in half, said on Fast Money earlier in the week that the world is pretty much in supply-and-demand balance and that maybe by the end of the year oil prices could go a little bit higher. "It's all about production cuts and the increase in demand, and the International Energy Agency has been saying that demand has picked up by 1.3 million a day," Cramer said. "So you end up with a situation where unless the Saudis can pump out a couple million more [barrels] per day, oil is going to keep going higher. $50 has been my price target."