Last Modified: Monday, March 25, 2013 10:32 PM
Around 2005, George Jordan had a conversation with his father, Steve, about the future of the oil and gas industry.
The elder founded Jordan Oil in 1980 and watched his company grow to include Central Crude and LA Tank. Each company participates in the oil and gas world.
“I was at LSU at the time and was visiting with Dad trying to decide if I was going into the family business. He said the industry had been good to him but at that time (around 2005), Dad did not know what the future was going to be,” George Jordan, 27, said.
Today, both men are extremely pleased with the state of the oil and gas business, especially since new technology has made it economical for oil and gas exploration businesses to pump wells that as recent as the 1970s nobody thought possible.
More than a year ago, all three companies had 60 employees. Due to onshore oil and gas finds around the country, the Jordans’ employment roll consists of 160 workers.
“I am thrilled about it and super excited about the opportunities we have,” George Jordan said. “Oil and gas industry people are resilient and innovative.”
As much as he is optimistic about the chance to see his family’s company grow, along with the industry as a whole, Jordan is circumspect about the challenges independent companies like his face.
He explained that big, heavily financed international companies have bought or leased millions of acres of land across the country and are drilling and making oil and gas finds. As a result, Jordan Oil and its two sister companies had to make adjustments.
A lot of time is spent in the company providing midstream, transportation and environmental services to the bigger companies that are drilling.
“It is difficult for traditional well drillers to compete at the same time we have this boon onshore. It is a big boys’ game right now. For the smaller independents it is harder to compete. Big companies like Conoco can spend $8 million to $10 million on a well,” he said.
Also, the low price of easily tapped domestic natural gas, make it difficult for independently owned oil companies to make a profit after a well investment.
Jordan said the Haynesville Shale located between northwest Louisiana and northeast Texas is an example of an area hurting from its own success.
“That was one of the first shale booms. Gas was around $10 to $12 dollars (per cubic square feet). The amount of money that was going to Shreveport was crazy due to success. Then the priced dropped to $2.50.”
Companies across the world are waiting to see if the United States government will allow more export of a cheap yet abundant natural gas supply. Environmentalist and the chemical industry officials stand in opposition. One said argues that the water is polluted because of chemicals used in hydrolicfracturing; the other side wants to keep a cheap source of energy available to power industrial plants.
Jordan said the positive, that the public may not know, is that the abundant supply of domestic oil and gas may allow the country to become energy independent by 2020.
“Had we said that 10 years ago, people would have laughed and thought we were delusional. Anytime we can reduce the country’s independence on foreign oil, it is good for natural security and creates jobs in the United States instead of abroad,” Jordan said.
He is happy to be involved in the family business at a time when new networks of highly talented professionals are devising new ways to improve drilling.
“A lot of oil and gas companies rode the ups and downs of the industry. Some went out of business. Dad built a great company and that puts us in a great position. I have come into a business with so much potential.”
Posted By: Tamela Stryzewski On: 4/5/2013
People can , quite literally, light the water from their kitchen sink on fire.
Yep. Send your children to the sink for a glass of that to drink.
Posted By: william hayes On: 3/28/2013
The nut cases who are against hydro-fracking have absolutly no facts to back themselves up. The News outlets both traditional and internet have absolutly no interest in reproting the facts of the matter because this is a hot button issue and keeps people talking much to their gain. (Look up the documentary "Fracknation" if you want the facts)These "News Outlets" also state thet the natural gas can be turned into a much cheaper Diesel fuel. I dont know if that's true or nor, but I do know that it can be turned into a very good form of gasoline with a natural 95 octane rating. If they were making it now....the cost to us would be about $2.00 a gallon. And it would burn so much cleaner ! Texas A&M developed this process years ago and so far the only entity to lease the process from Texas A&M is the country of Kuwait.
Posted By: Tafford J. Deshotel On: 3/26/2013
Title: Mr. Tafford Deshotel
I am very happy for the continued success of a local company.