In the ever-volatile world of oil markets, few voices carry as much weight as that of Harold Hamm, the billionaire wildcatter and founder of Continental Resources. As oil prices hover in the low $50s to $60s per barrel amid global oversupply and weakening demand, Hamm has made headlines with his stark assessment: there’s simply no economic incentive to drill at these levels. This sentiment, echoed in recent interviews and company decisions, highlights the challenges facing U.S. shale producers outside the most efficient basins like the Permian.
Drawing from a Bloomberg report and Continental’s latest moves, this article explores Hamm’s comments, the historic halt in Bakken drilling, the company’s pivot to South America, and what it all means for America’s oil future.
The Bloomberg Perspective: Shale’s Breaking Point
Back in March 2025, Hamm sat down with Bloomberg and delivered a reality check to the industry. He argued that U.S. shale drillers require oil prices around $80 per barrel to viably develop higher-cost fields beyond the Permian Basin.
“When you get below the cost of supply, you can’t ‘drill, baby, drill,'” Hamm stated bluntly, pushing back against optimistic claims from some in the Trump administration that production could ramp up even at $50 per barrel. He emphasized that while the Permian might break even at lower prices, regions like the Bakken in North Dakota face steeper hurdles due to geology, infrastructure, and operational expenses.
This wasn’t just talk. Hamm’s warning came amid a broader industry debate over the sustainability of U.S. output growth. With Brent crude forecasted to average $51 per barrel in 2026 by the U.S. Energy Information Administration, many operators are reevaluating their capital plans. Hamm’s Continental, a pioneer in hydraulic fracturing, has long championed aggressive exploration, but even he acknowledges the math doesn’t add up below $58-$60. As WTI crude dipped to around $60 recently—down over 3% in a single session—Hamm’s words resonate more than ever.
A Historic Pause in the Bakken: No Rigs for the First Time in 30 Years
Fast-forward to January 2026, and Hamm’s caution has turned into action. Continental Resources is set to halt all drilling operations in North Dakota’s Bakken shale, marking the first time in over three decades that the company has no active rigs in the region.
“This will be the first time in over 30 years that Harold Hamm has not had an operation with drilling rigs in North Dakota,” Hamm told Bloomberg in a recent interview. “There’s no need to drill it when margins are basically gone.”
The Bakken has been Continental’s cornerstone since Hamm drilled his first well there in 2003, proving the viability of horizontal drilling and fracking in the tight rock formation. The play has produced over 6 billion barrels of oil to date, with Continental as one of its largest operators. At its peak, the company ran multiple rigs, contributing significantly to North Dakota’s output, which hit record highs around 1.3 million barrels per day in the late 2010s.
But low prices have eroded profitability. Continental’s decision reflects a broader pullback: rig counts in the Bakken have dwindled as operators prioritize cash flow over growth. Hamm’s move isn’t isolated; it’s a symptom of an industry grappling with sub-$60 oil, where only the lowest-cost wells pencil out. For Continental, this means shifting focus to more resilient assets while waiting for a price rebound.
Pivoting South: Continental’s Drilling Push in South America
While dialing back in the U.S., Continental isn’t sitting idle. Under Hamm’s direction, the company is aggressively expanding into Argentina’s Vaca Muerta shale, often dubbed the “Permian of the South” for its vast potential. In November 2025, Continental inked a deal with Pluspetrol SA to acquire assets in the basin. Just weeks ago, on January 5, 2026, it announced another major acquisition: non-operating interests in four blocks from Pan American Energy (PAE), including Coirón Amargo Sureste, Bandurria Centro, Aguada Cánepa, and Loma Guadalosa.
These moves represent Continental’s first significant international foray, exporting U.S. shale expertise to unlock Vaca Muerta’s estimated 16 billion barrels of recoverable oil and 308 trillion cubic feet of natural gas. Hamm sees parallels to the early days of the Bakken: untapped resources ripe for fracking innovation. The company’s stake in these blocks—around 20% in some cases—positions it alongside majors like BP and CNOOC through PAE’s joint ventures.
Drilling activity in Argentina is ramping up, with Vaca Muerta’s gas output hitting milestones like 7 billion cubic feet per day. Continental’s investments, while terms remain undisclosed, signal a strategic diversification. By mid-2026, expect Continental to deploy rigs and apply Permian-style efficiencies, potentially boosting Argentine production and creating a new low-cost supply hub for global markets.
What This Foreshadows for U.S. Oil ProductionHamm’s decisions aren’t just company-specific—they portend a turning point for U.S. oil. The Bakken halt underscores how low prices can stall growth in mature shale plays. Analysts warn that U.S. production, which peaked at around 13 million barrels per day pre-2020s slumps, may have crested again. With the Permian accounting for nearly half of domestic output, declines in higher-cost areas like the Bakken and Eagle Ford could drag overall volumes down by 2027 if prices don’t recover.
Experts like those at Goehring & Rozencwajg suggest the Permian itself is depleting faster than expected, with output potentially peaking soon. Hamm’s pivot to Argentina hints at a broader industry trend: seeking opportunities abroad where costs are lower and regulations more favorable under pro-business leaders like Argentina’s Javier Milei. For the U.S., this could mean reduced energy independence, higher imports, and vulnerability to global shocks—ironically, countering the “drill, baby, drill” mantra Hamm once championed alongside President Trump.
Yet, it’s not all doom. A price rebound—perhaps driven by OPEC+ cuts or geopolitical tensions—could revive Bakken activity.
In the meantime, Continental’s international bets may cushion the blow, ensuring Hamm’s legacy as a global energy trailblazer endures.
As oil markets evolve, one thing is clear: at $58 per barrel, the drill bits stay quiet in places like the Bakken. For energy investors and policymakers, Hamm’s moves are a wake-up call to the fragile economics of shale.
We have some huge issues around the world working themselves out rightnow. Venezuela’s first oil shipment was sold by the United States through the new financial system, effectively gaining control of the country’s entire oil and gas exports, amid unrest and a potential revolution in Iran that could spill over and impact Iraq’s output. There are way too many moving pieces in the oil and gas pricing matrices to get a firm grip, but one part of supply and demand will remain a cornerstone. The fact is that the world has not been investing in oil and gas exploration for decades and is short by trillions of dollars.
The pendulum of pricing will switch back to the upside; the question is how soon and how long. Harold Hamm is right there, will not be “Drill baby Drill” when there are no margins.
Stay tuned to Energy News Beat for more updates on this shifting landscape.
Sources: business.financialpost.com, Bloomberg, tipranks.com, energynewsbeat.co
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