In a historic shift, Continental Resources founder Harold Hamm announced the company will halt drilling operations in the Bakken oil fields for the first time in over 30 years.
Hamm, a pioneer of the North Dakota oil boom, told Bloomberg that falling crude prices have effectively eliminated profit margins. With oil currently trading near 59 dollars per barrel—just slightly above the 58-dollar break-even point—Hamm says “there’s no need to drill” until the market improves.
The pullback comes as the U.S. begins importing oil from Venezuela, adding to an oversupply that has seen domestic prices drop 26% over the last year. North Dakota remains the nation’s third-largest producer, but industry experts warn the absence of the state’s most prominent driller signals a major reevaluation of activity across the basin.
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