Continental Resources Restarts Bakken Drilling as Oil Prices Near $100
According to Oklahoma Energy Today, Continental Resources founder Harold Hamm announced at the Williston Basin Petroleum Conference in Bismarck that his company is returning drilling crews to North Dakota’s Bakken play after a pause that began in January.
Market Impact
The January shutdown marked the first time in 30 years that Continental Resources, North Dakota’s No. 2 oil producer, did not have an operating rig in the state. Hamm cited low oil prices at the time of the pause, with West Texas Intermediate trading around $60 per barrel. As of the conference, WTI had climbed to approximately $100 per barrel, driven in part by the ongoing war with Iran.
Hamm has not released a specific rig count for the restart, but told the North Dakota Monitor the number would be “meaningful” and that crews would be back to work before the end of the year. He also said he does not expect crude prices to fall sharply even if the Strait of Hormuz reopens, adding, “I think that we’ll get back to realistic values of oil and natural gas.” Hamm described the high $70s to low $80s per barrel range as a “healthy range” for the industry, noting that anything lower tends to curb activity. The breakeven cost for North Dakota operators ranges from $50 to $65 per barrel depending on location, according to Department of Mineral Resources Director Nathan Anderson, who called the announcement welcome news and noted at least one other operator is also planning to pick up an additional rig.
What It Means for Subcontractors
- Bakken service demand is returning. Drilling crews, completion crews, logistics providers, and equipment rental companies that scaled back in North Dakota earlier this year should expect activity to ramp up before year-end.
- Pricing leverage has shifted. With WTI near $100 and operators motivated to move, subcontractors have more room to hold firm on rates. Hamm’s own comment, “we’re not giving it away now,” signals operators are protecting margins, but activity is back on the table.
- Watch for rig mobilization signals. Continental has not confirmed a specific rig count yet. Subcontractors should stay close to their Continental contacts and monitor state permitting data for early indicators of where and when activity resumes.
- North Dakota’s breakeven math matters. At $50 to $65 per barrel breakeven and WTI near $100, the margin buffer is substantial. That environment typically supports sustained drilling programs, not just short bursts, giving service companies more confidence to hire and commit equipment.
