Shale Pioneer Harold Hamm Steps Back From Bakken After Decades

Harold Hamm says low oil prices are forcing a step he hasn’t taken in decades: shutting down drilling in North Dakota’s Bakken, according to Bloomberg.

“This will be the first time in over 30 years that Harold Hamm has not had an operation with drilling rigs in North Dakota,” he said. “That tells you a whole lot right there: There’s no need to drill it when margins are basically gone.”

The decision underscores how far conditions have shifted in the region that once defined the US shale boom. The Bakken was where Hamm showed that fracking could unlock oil long thought unreachable, helping transform the US into the world’s leading producer and reshaping global energy markets.

Bloomberg writes that the pullback reflects pressure across the industry. Even as Hamm backs President Donald Trump, producers are feeling the strain from policies aimed at pushing oil prices lower to fight inflation, at the expense of profitability.

Costs are rising just as prices fall. BloombergNEF estimates that a typical Bakken well now needs about $58 a barrel to break even, nearly 4% higher than a year ago. At the same time, US benchmark crude has slid about 25% over the past year to roughly $59, weighed down by fears of oversupply and expectations of more barrels entering the market, including from Venezuela.

Drilling activity has dropped nationwide, with US rig counts down 15% over the past year and the biggest reductions coming from the Permian Basin.

“A lot of people are assessing their activity in all the basins,” Hamm said.

He made clear the pause may not be permanent. “We’re price takers, as you’re aware — not price makers,” he said with a laugh. “See what we can get.”