Harold Hamm of Continental Resources says there’s no sense in drilling when there’s no margin to make at $58 oil.
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They can’t stop drilling. They have to drill to hold leases
Probably not in the Bakken. One well holds a 1280. Most of those first wells were drilled in the past 15 years. Pretty much everything is held, now its just a matter of whether or not you want to drill the remaining 7 wells on the units that still just have one well. They have a decent amount of Williams/McKenzie Cty inventory (drilled 84 wells in last year) but tIMO they don’t have lease expirations issues unless maybe on tiny amounts in Montana or far Northern Divide (where you probably don’t care if the lease expires too much as its fringe).
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Well they keep saying they will stop drilling when rigs are on 3 year contract’s etc. if they stop everyone will leave and then what
My guess is that they will keep the rigs working, as it’s tough and costly to shut it down and then restart a year or more later. As someone else mentioned, they will continue drilling to hold units—new spacing in many areas is 4 sections, so they can tie up 16 full sections with one pad. (Pad in corner, 4 mile laterals, one in each unit.)
I’ve seen Xto buy out rig contracts to release rigs early and be picking up rigs at same time. It is hard to shut down. Rigs are aging. Ad valorum taxes. Crews drift away. I guess it would throw the work to North Dakota contractors cause everyone else goes home
As of today, Continental no longer operates a drilling rig in North Dakota.
All that means is everyone go somewhere else.