Continental Resources CEO Hamm warns sub-$50 oil "not sustainable"

|About: Continental Resources, Inc. (CLR)|By:, SA News Editor

Continental Resources (CLR -0.4%) CEO Harold Hamm tells CNBC that crude oil prices below $50/bbl are not sustainable for oil companies, and a drop below $40 would cause many U.S. producers to stop drilling.

Hamm says oil prices dipping into the $30-$40 range would force drillers to cut capex and stop drilling new wells, causing production to dry up and leaving the market undersupplied.

Hamm urges drillers to "be prudent and use some discipline... that's what we're doing at Continental" when it comes to new oil production.

CLR operates in North Dakota, Oklahoma and other parts of the U.S. where it is typically harder to break even on producing new oil than in Texas.