Think of the oil and gas industry as a group of experienced professionals living in a small town who meet up at the local barbeque restaurant to share their news. That describes The International Oil Show twice each year in Houston, Texas. The world’s largest to smallest oil companies fill the convention center to physically sit down with one another, shop deals, partner with one another and institutional funding sources, and plan their next plays.
Now imagine spending more than 30 years in that small town. Your reputation had better be good. If you have been a driller and operator in the oil industry for over 30 years, and you’re still operating, you have a stellar reputation, a reputation like James McCabe’s.
Consider the upside of the domestic oil drilling business in the US:
U.S. oil production grew more in 2012 than in any year in the history of the domestic industry, which began in 1859, and is set to surge even more in 2013. Daily crude output averaged 6.4 million barrels a day last year, up a record 779,000 barrels a day from 2011 and hitting a 15-year high, according to the American Petroleum Institute, a trade group. (Source: WSJ)
The market size is growing for this commodity. But reputation remains the only way to get the best leases, operate with the best drilling services, and raise the funds to drill and produce oil. That reputation speaks to the experience also necessary to maximize profitability.
James McCabe’s experience includes working with every aspect of the industry, including securing the lease from a skilled landman, planning a successful drilling schedule with a seasoned geologist, deciding the correct financing structure based upon relationships built through the years with select lenders and investors, establishing a contract with a drilling service company, then managing operations, compliance, oil sales, and accounting.
So, it may be argued that if oil industry professionals and investors are still excited to work with you after 30 years, you’ve probably heard of Jim McCabe.