Oil tycoon Harold Hamm says Saudi Arabia and Russia are flooding the market in a “direct attack” on U.S. producers.
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“They’re taking advantage of this coronavirus pandemic that’s sweeping the world to focus in on this industry and devastate it,” Hamm, founder and executive chairman at Oklahoma City-based Continental Resources Inc., said during an interview on FOX Business’ “Cavuto Coast to Coast” on Wednesday. "That's not gonna happen. We're gonna take action on them. We're gonna investigate that."
He said the Domestic Energy Producers Alliance has taken action to pass a resolution and start an anti-dumping investigation into Saudi Arabia, Russia and possibly other countries.
On Monday, West Texas Intermediate crude oil plunged 24.6 percent after Saudi Arabia slashed its price by $6 to $8 a barrel when Russia declined to join OPEC in cutting supply. The selloff contributed to a more than 2,000-point drop for the Dow Jones Industrial Average, the sharpest since the 2008 financial crisis.
U.S. shale producers, which on aggregate need oil to be priced in the upper $40s to be profitable, saw their market capitalizations plunge as crude fell as low as $27.34 a barrel. The selling also hit U.S. banks, which have loan exposure to the shale patch.
“Does it damage the industry? Absolutely," Hamm said. Russia and Saudi Arabia both "know that, and that’s why they’re taking this action. Can we stop them? We certainly can.”