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This research seeks to understand principal self-efficacy in light of the challenges and demands faced by principals of small rural schools located in the boom/bust environment of the Bakken Oil Patch in Eastern Montana. This mixed methods study used the Principal Sense of Efficacy Scale to survey principals and interview those with high self- efficacy about the challenges inherent in a rural boom/bust environment. Principals identified economic and social challenges associated with an increasingly growing and diverse student population as well as lack of community acceptance and support as the most challenging issues. Relationships with students and teachers, past student successes, and mentoring by university and peers bolstering principals' self-efficacy. Recommendations for policy are also included.