Continental Resources has suspended new drilling activity in North Dakota's Bakken shale, citing inadequate economics under current oil price conditions. The decision was disclosed by founder and controlling shareholder Harold Hamm during an investor call hosted by Bloomberg, where Hamm said prevailing prices no longer support incremental drilling in the play.
After more than 30 years of continuous activity in the Bakken, margins have compressed to levels below Continental’s return thresholds, Hamm said. Elevated service costs and weaker crude pricing have pushed breakeven requirements above current market levels, he continued.
The company characterized the move as a tactical pause rather than a permanent exit, indicating that drilling could resume if pricing improves.
The Bakken was central to the early expansion of horizontal drilling and hydraulic fracturing in the US. However, as the play matures, productivity gains have moderated and capital efficiency has come under pressure.
Argentina
Meanwhile, Continental is advancing its first large-scale expansion outside the US, targeting Vaca Muerta in Argentina’s Neuquén basin.
On Jan. 5, 2026, Continental finalized an agreement with Pan American Energy (PAE), acquiring a 20% non-operated interest in four shale blocks.
PAE Group chief executive Marcos Bulgheroni said Continental’s participation adds technical expertise focused on efficiency and risk reduction. Continental chief executive officer Doug Lawler said the company views Vaca Muerta as one of the most competitive shale plays globally.
That deal follows Continental’s acquisition of a 90% operated interest in Los Toldos II Oeste from Pluspetrol, establishing the company in Argentina as both an operator and a non-operating partner.
