Independent oil and gas company goes boom instead of bust

By By Eric Cormier / American Press

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


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.”