The NPC Difference

1981 – 1997

NPC did not start as a consulting company, but rather as a drilling contractor in the midcontinent region.

Securing drilling rigs became difficult, so a small group of oil and gas investors decided to start a drilling rig company to assure rig availability for their own prospects. This venture was spearheaded by Mike Oxley, our founder and still Chairman of the board. Then, Mike was only 22 years old, freshly graduated from the University of Oklahoma with Petroleum Engineering and MBA degrees. The inspiration of the company name did not come entirely from oil prospecting, but from a famous Thoroughbred racehorse (Mr. Prospector).

It all started in Fort Smith, Arkansas in 1981. After the 1973 Middle East oil embargo that OPEC imposed on the US, oil prices skyrocketed from $20/barrel to $60/barrel in a matter of months. This spurred an initiative for the US to become energy self-sufficient. The oil and gas industry reacted by increasing investment to bring more supply of hydrocarbons into the market. This upswing continued into 1980 and by then oil prices were at an all-time high of $114/barrel. At cycle high, the rig count was at 4,521 in the US.

Full of enthusiasm, Mike Oxley secured bank financing to purchase and place rig 1 in June of 1981 for Tenneco Oil Company and soon after, rig 2 on October of 1981 for Samson Resources. The company only enjoyed two months of “good times” before the great oilfield depression began on January 1, 1982. Our nation’s rig count dropped steadily for five years before bottoming in 1986. At cycle low, the rig count was down to 686, or 85% from the 1981 peak. During that period, only a few drilling contractors avoided filing bankruptcy. In fact, several went bankrupt more than once. New Prospect was not well capitalized. It was saddled with tremendous debt since inception and was paying 21.25% (prime rate plus 3/4%). How did the company survive the 17-year depression?

The answer is complex, but in a nutshell, that time period tested our core values and personal traits which revolved around relentlessly honoring and protecting our name and reputation, and resolute focus on survival. That downturn came to define and cement our company ethos of teamwork and entrepreneurship that to this day, continues to guide us.

1998 – Present

Eventually, hard work paid off. After arduous work and steady growth, NPD persevered in building its rig fleet through the 80s and 90s from two to seven rigs. In 1998, the company sold its assets to Nabors Drilling, including tool pushers and rig crew personnel. Still holding other oilfield equipment, the company changed its name to New Prospect Company. Within months after the sale, many of NPD employees that transitioned to Nabors were unemployed. Mike Oxley, upon learning this, told them to come back to work NPC, even though there was not any work for them to do, we would figure it out together. There was no grand strategy or a business plan in place. Not all business decisions shall be driven by financial reasons. We are loyal to our team members. Our previous Tool Pushers were highly experienced and many operators in the Arkoma and Anadarko basins thought highly of New Prospect’s team.

In 1999, NPC organically pivoted toward a wellsite consulting services as a vehicle to keep that team of six members employed. The company continued growing year after year, by word of mouth and exclusively only drilling supervisors as employees only (no independent contractors yet), until 2006, when our industry went through the expansion of horizontal drilling and multi stage hydraulic fracturing in unconventional plays across the country. Our first leap outside the Midcon region was in East Texas, hiring a dedicated sales team to offer our level of experienced personnel and professionalism to the Haynesville shale, followed by the Marcellus shale. Soon after, our expansion continued to South Texas (Eagle Ford and Gulf Coast region), then to offshore Gulf of Mexico, and finally to the Permian basin.

Today, NPC has a presence on all major basins in the US, both conventional and unconventional, including offshore Gulf of Mexico, with highly experienced wellsite supervisors, from drilling, completions, safety, engineering, construction, HSE, etc.

Because of our roots, we do not measure success by having the highest number of consultants, but by having the best. If you consider yourself in this group, and want to work for a company and be part of something more than just making money, we extend our invitation to contact us and allow us to be of service to you.