Continental Resources is reversing course on drilling cuts as oil prices surged past $100 per barrel, with CEO Harold Hamm pledging to raise capital spending by $300mn to $2.8bn in 2026. The decision marks a sharp turnaround from January, when the shale driller paused new wells in North Dakota as prices languished below $60. Hamm told the FT he does not expect prices to return to pre-war levels.

Since US strikes on Iran began in late February, producers have added 18 oil rigs, pushing the total to 425. The Energy Information Administration expects US production to climb 410,000 barrels per day in Q1 2027 and hit 14.21mn bpd by year-end, up from 13.53mn bpd in the first quarter. Publicly listed shale companies raised capital expenditure forecasts by $490mn in their Q1 results.

Diamondback added rigs, signaling wider expansion despite warnings that high-quality Permian Basin drilling inventory is running out. Scott Sheffield, a former Pioneer Natural Resources CEO, said accelerating remaining tier one inventory would exhaust it faster. If prices stay elevated, US producers stand to capture a $63.4bn cash flow boost while American households have already paid $40bn more for fuel since the conflict began.