Bloomberg reports Billionaire Harold Hamm, one of the early adopters of shale drilling in North Dakota plans to cut spending by 41 percent at his company after the plunge in oil prices.
Hamm was interviews and he said his company, Continental Resources Inc. and other U.S. producers can adjust quickly to the crude collapse and will be able to withstand the downturn better than many producing countries, which face economic “ruin,” Hamm said in an interview.
Continental (CLR) and rivals including ConocoPhillips and Apache Corp. plan to trim spending and move rigs to more profitable areas while prices remain under pressure. Crude has fallen by almost 50 percent since June to a five-year low as demand forecasts fell amid a glut in supply fed in part by the shale revolution.
Hamm’s wealth, which is tied closely to the shares of Oklahoma City-based Continental, has fallen by $5.7 billion this year, according to the Bloomberg Billionaires Index.
The article also concludes it is important for Shale Producing companies to cut spending amidst low oil prices.
