Continental Resources ( CLR) CEO Harold Hamm warned on Wednesday that if crude prices fell below $40 per barrel many U.S. producers would stop drilling.
On Wednesday, U.S. crude traded at about $44 a barrel.
"This price ... is not sustainable," Hamm said on CNBC's "Squawk Box." "It needs to be north of $50 for sure to be sustainable in the world."
A drop in prices into the $30 to $40 per barrel range would force drillers to reduce capital expenditures and cease drilling new wells, rendering the market under supplied.
"While this period of adjustment is going on, drillers don't want to drill themselves into oblivion. Backup, and be prudent and use some discipline," Hamm said.
"That's what we're doing at Continental and there are other CEOs I think that are probably doing the same thing. We don't talk about those things," he added.
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