Monday to Friday, from 6:00 to 7:00 PM ET, CNBC's Jim Cramer made a significant assertion. He stated that stocks associated with oil and natural gas are poised to flourish during President-elect Donald Trump's tenure. Trump has demonstrated a greater inclination towards the industry compared to President Joe Biden. Cramer pointed out that an oil executive has been appointed to lead the Department of Energy. He emphasized, "If you seek a sustainable Trump trade, I suggest betting on the natural gas ecosystem."Under Trump's Administration: A Favorable Environment for Oil and Gas
Natural Gas and Oil Companies Set to Thrive
CNBC's Jim Cramer on Friday highlighted that companies related to natural gas and oil will thrive under President-elect Donald Trump's administration and a majority Republican Congress. He noted that in the current climate of various "Trump trades," many have witnessed insane movements within less than three weeks, to the point where they now seem precarious. However, he firmly believes that if one wants a sustainable Trump trade, betting on the natural gas ecosystem is the way to go. This is an industry that already had inherent strengths but just needed some cooperation from the federal government, which is now on the verge of being achieved.President Joe Biden's administration has been largely opposed to fossil fuels. The federal government has taken steps to block pipelines and halt new liquified gas export authorizations. This situation, coupled with a weaker global economy, led the sector to underperform for a significant part of the year, as Cramer suggested. But Trump has shown more favor towards the industry. He pointed out that he appointed prominent oil executive Chris Wright to lead the Department of Energy.Recommended Stocks in the Sector
Cramer recommended several stocks in the sector. Energy producers EQT and Coterra are among them. EQT is focused on natural gas and recently acquired peer Equitrans, raising the combined company's valuation to an estimated $35 billion. Cramer noted this and added that Coterra is a good long-term holding, calling the company "one of the shrewdest operators in the industry."He also highlighted pipeline companies like Energy Transfer and Kinder Morgan. He was especially bullish on Enbridge, stating that it transports about 20% of all natural gas consumed in the U.S. and has "strategically located assets." He named Cheniere and Sempra as well, claiming that Cheniere is the "best play" for liquified natural gas exports.Seasonal Advantage and Industry Optimism
"Seasonally, this is a good time for the commodity," Cramer said, pointing out that natural gas itself has climbed since the election. He believed that there is also some optimism about the future of the industry driving this upward movement. This combination of seasonal factors and industry optimism provides a favorable backdrop for the oil and natural gas sector.Overall, Jim Cramer's insights and recommendations suggest that the oil and natural gas industry is likely to see significant growth and opportunities under President Trump's leadership. The appointed oil executive and the current market conditions are expected to have a positive impact on the sector.
