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Hamm: “Oil prices could rebound faster than expected”

Despite the many recent non business-related headlines about him over the past month, folks within the oil and gas industry should still respect what Harold Hamm has to say. The Continental Resources CEO said Wednesday that he believes “the market doesn’t understand just how quickly oil companies are scaling back their activities, and as a result, oil prices could rebound faster than many observers expect.” Hamm made the comments as he addressed the Argus Americas Crude Summit in downtown Houston.

Hamm’s comments:

 “Exploration and production companies can’t afford to borrow money, and falling stock prices make it hard to raise cash by issuing equity. You’re limited in what you can do if you don’t conserve cash. Oil companies will save cash by laying down rigs and deferring well completions until service companies’ rates drop further. Why complete a well today when these service costs are coming down? Some companies will likely stop producing oil from existing wells and simply leave it underground as they wait for oil prices to increase. It’s not going anywhere, it’s locked in like a rock.”

Hamm added that he believes oil production from the country’s biggest shale plays–such as the Bakken, Permian and the Eagle Ford—could begin to start decreasing mid-year or even sooner. That is news to other observers who say production would still likely increase this year even if drilling activity slows.

“U.S. producers will demonstrate market discipline and act uniformly,” Hamm said. “We have the same market forces on us, so we do the same thing. The market does not appreciate how rapidly U.S. producers are reacting.”

Hamm was uncertain of the level at which oil prices would bottom out at, but he says he believes that they’ll likely be less than $100 per barrel for the long term as the markets come to understand the size of the resource base U.S. shale drillers have access to.

You can read the full story by clicking here.


  1. Either way u pay higher Gas prices or for my unemployed ass to look for a new job

  2. We can drill it here or send soildiers of there to secure the Muslim drillers safty while they drill and kill

  3. Ya know if ya don’t like the oil industry find a new industry and quit complaining

  4. Or we could remove restrictions on companies selling oil to other places and keep low gas prices… But no, let’s hurt our oil and gas industry, cost thousands of jobs, and bump the price of gas back up. Good plans.

  5. 2.50 is ok but not above that. Where it was wasn’t good.

  6. Michael, before you start turning a good post in to a political poonado you clearly have no understanding of, you should learn how to put a sentence together with proper spelling. We( soldiers) were not sent for oil, to protect Muslim oil drillers, or any other dumb ass conspiracy theory you silly billies dream up. Suck start a pistol before you reproduce. Dummy.

  7. Oil just hit a 6 year low today $43 a barrel

  8. Hoping it is true two many people out work

  9. I would take what Hamm says with a grain of salt. He hasn’t made the savviest of decisions lately

  10. Hamm says “could” I say put those from the oilfields to work on roads. Speed up infrastructure is what merica needs.

  11. Hey Harold,Ya only got 14B for pocket change now that your ex. got 1B..She said you were a lying womanizer and a cheap skate, your predictions of the future are about as good as Jean Dixons,the oil industry is cycilcally like most are…Marty

  12. if companies cut back production then just pull those companies off the wells and find another company that WILL pump oil! That simple. THAT is how it works at any job!!!! You slack off at your work you get replaced, right? You are losing money on your stock?????? SELL YOUR STOCK, DUMMY!!! Stop crying about 47 dollars a barrel. Why do you still own that stock when it was at 130 dollars a barrel not long ago???? You should have sold it at 120$ like a smart person when it was dropping!!! When it starts to up trend again you buy more!!!! YYOOUUU have no idea how markets work!!!!

  13. Is this wishful thinking, Howard? Scared you hedged the wrong way?

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