Hamm shares hard-won knowledge with UND students

Honorary doctoral-degree recipient Harold Hamm visits with UND engineering students

Just hours after he received an honorary doctorate from UND, Harold Hamm sat down to visit with engineering students at a “fireside chat.”

Interim Dean of Engineering & Mines Brian Tande introduced Dr. Hamm, executive chairman and founder of Continental Resources, which was one of the first oil companies to initiate horizontal drilling in the Bakken. The Harold Hamm School of Geology and Geological Engineering is named after Hamm, who has also endowed two professorships — one each in petroleum geology and petroleum engineering — at UND.

Tande thanked Hamm for his generosity, then turned the program over to Hamm and the students.

“It’s good to be here,” said Hamm, who grew up in rural Oklahoma, worked in oil fields, and established Continental Resources in 1967 at the age of 21. “Anytime I come on campus, my favorite part is talking to students. I hope I inspire you a little bit. You inspire me a great deal. Being on campus is a treat for me. It reminds me of my schooling and training, and spending 40 hours a week in an ‘ology’ lab.”

Hamm answered a variety of questions from students, most of whom thanked Hamm for his support of the School and its students. The answers are summarized below.

On getting experience

Hamm said he comes from a small rural community, and moved to an oil boom area that was the home of a major oil company at the time.

“The folks were bigger than life, and I got caught up talking to them,” Hamm said. “Their generosity captured my imagination. I did my thesis on energy and petroleum resources, and I learned more about the industry. I learned what people in Oklahoma had done to build up the state, and I wanted to be like them. I started with nothing. I did it the hard way, and went into the oil fields. Ten years later I went to college to be a geologist. In the meanwhile, a lot of people mentored me. I was blessed.”

On the transition of energy sources

We are in an energy transition now, Hamm said, remembering the oil crisis of the 1970s that resulted in long lines at gas stations and less emphasis on natural gas. He believes we’re experiencing an energy renaissance with horizontal drilling, and that natural gas and solar power generation are also in the mix.

On oil field experience

Hamm emphasized that students need field experience.

“Learn as you go,” he said. “Field experience is really important. Later, when you’re in the office doing math, you’ll know what you’re doing. We have 300 people in the field, and are always needing more folks.”

What UND can do

UND turns out some really good people, Hamm said, adding that basic training is important.

“A degree in engineering means a lot, and field training makes you valuable. Get the basics down. We have some good geologists from UND working in Oklahoma.

On sustainability of oil and gas production

Hamm has been in the oil business for 52 years, he said, adding that at one time, people thought the world would run out of oil.

“We’ve been in oversupply since 2014, and it’s primarily the United States,” he said, adding that oil companies have cut back in order not to oversupply and to preserve oil reserves so they last longer. “Today we have over a 100-year supply of natural gas.”

There is a lot of oil in the Bakken, Hamm said, noting that at one time, they thought they could recover only 3 to 5 percent of it. Now, they are able to recover 20 percent, and he believes they may be one day able to double that recovery rate. He believes there are 30 to 35 billion barrels of oil in the Bakken, and with renewables such as wind and other technologies, he sees a great future.

“Horizontal drilling created this energy renaissance,” he said.

On “soft skills” for engineers

“Too many people hire for skill, not quality and character,” Hamm said. “We’re looking for people who are ethical and work hard. Quality of character means more to Continental than anything else. We run lean, and don’t hire more people than we need. We want them to learn the business and have loyalty. Do you love the industry? If not, you’re not the right person for us.” He added that his company tries to protect employees and avoid layoffs during down cycles.

The one most important course to take

There are so many important courses, Hamm said, adding that chemistry and lab work are skills he often refers to.

Are entrepreneurs born or made?

Entrepreneurs are not born, and can develop over the course of a career, Hamm said, adding that some people have an inherent talent for entrepreneurship.

On risk-taking strategy

“Risk is something we constantly weigh,” Hamm said, adding that they do a lot of investigation before they get too involved. “The wrong deal can drown you. There was a lot of risk with the Bakken, and we drilled a lot of dry holes in the beginning, but we believed it was worthwhile. I’ve seen some really big companies go in the wrong direction and go upside down. . . . Don’t get too far over your skis.”

Differences between the Bakken and the Permian oil fields

Hamm said he and his company earlier speculated on the Bakken, which today is ranked one of the premier oil fields for its quality of crude, fairly low production cost, and reasonable development costs. He said he would rank it just as high as the Permian, which is larger but has some issues. In a follow-up question, Hamm said that his first experience with horizontal drilling was in Bowman County in North Dakota, which led to the Bakken.

“Technology has come a long way,” he said. “It’s led the way for the rest of shale development in the U.S. and the world.”

On downtime

When asked what he does for fun, Hamm said he likes to hunt and fish. He added that he enjoyed visiting with the students.

“It’s good to be here with you,” he said. “We’ve talked fun and serious stuff. It’s wonderful to be in the position we are.”