Continental Resources halts Bakken drilling for first time in 30 years

FARGO, N.D. (Valley News Live) – For the first time in more than 30 years, North Dakota’s Bakken shale formation will be without drilling rigs operated by Harold Hamm’s Continental Resources Inc., the company’s founder announced in an interview with Bloomberg last week.

The shutdown decision comes as falling oil prices have eliminated profit margins for Bakken operations, according to Hamm, who spoke with Bloomberg News over the phone.

“There’s no need to drill it when margins are basically gone,” said Hamm, 80, the billionaire oilman whose company pioneered modern drilling techniques in North Dakota’s oil fields.

Continental Resources’ exit from active Bakken drilling represents a turning point for the region where Hamm first demonstrated that hydraulic fracturing could unlock vast oil reserves trapped in shale rock. Those innovations transformed the U.S. into the world’s leading oil producer.

Current economics make Bakken drilling unprofitable. Wells in the formation need oil prices of at least $58 per barrel to break even and generate modest returns, according to research firm BloombergNEF. Drilling costs have climbed nearly 4% in the past year.

But oil prices have moved in the opposite direction. West Texas Intermediate crude, the U.S. pricing benchmark, closed Thursday at $59.19 per barrel, down 26% from a year ago. Market analysts attribute the decline to anticipated oversupply.

The pullback extends beyond North Dakota. Across the U.S., the active rig count has fallen 15% year-over-year, with Texas’ Permian Basin seeing the steepest cuts at 60 rigs.

Hamm, whose company also operates in Oklahoma and Texas, said the industry is reevaluating drilling programs nationwide.

“A lot of people are assessing their activity in all the basins,” he said in his interview with Bloomberg.

The Continental Resources founder indicated the company could resume North Dakota operations if market conditions improve.

“We’re price takers, as you’re aware, not price makers,” Hamm said. “See what we can get.”

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