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.

What's Hot On TheStreet

The stock market may be overvalued: Now may be the time to pay extra attention to red-hot tech stocks such as Apple (AAPL) and Facebook (FB) . As TheStreet first reported Tuesday afternoon, asset valuations are somewhat "rich" by standard metrics, Federal Reserve Chair Janet Yellen said in London during a conversation about economic issues with British Academy President Lord Nicholas Stern. Yellen's comments on equity valuation and bank strength closely mirrored Fed Vice Chairman Stanley Fischer's from an IMF event held earlier in the day.

If you liked this article you might like

Tech Sector Sits at Bottom of Wall Street as Apple Continues Its Slide

How to Invest Like Billionaire Warren Buffett

How to Eat Lunch With Billionaire Warren Buffett