With the price of oil hovering around $35 a barrel, some of the world’s biggest oil producers continue to curb their domestic efforts. Many are diversifying into wind and solar power.

Low oil prices are impacting the large-scale economies of corporate organizations, states and countries alike, but not to be overlooked are the small com-panies whose livelihoods have existed, sometimes been built, on a surging oil market.

If diversification is an answer for corporate organizations, it must be an answer for small, Western Oklahoma and Eastern Texas Panhandle companies as well.

TREES, DEMOLITIONIt is for Tim Bradford, owner

of Christ Centered Carriers of Canute.

“We started in 2012 and we

originally started off as a water transport company and then it pretty well involved into a full blown service company (that was) one-hundred percent focused at that time in the oil field.

“We grew into roustabout steamers, flatbeds, you know, the

whole nine yards, doing dirt work and remediation and then every-thing has kind of fell off here as of late.”

Bradford says they’ve diver-sified into all types of work including tree service, which has become foundational.

“We’ve really branched out into several different areas on tree work, residential and commer-cial. We’ve got the capabilities to do demolition, haul off (and) clean up. I’m actually sitting on a location in Cordell right now tearing down the funeral home for the new Tractor Supply Store. You know, we’re really trying to branch out into anything non-oil-field related. We also are gearing up more for state and federal jobs as far as disaster clean up. That’s exactly what I used to do. I’ve got about 10-years (of) experi-ence in that. We’ve got a bucket truck. We have haul trucks and experienced guys to do it. That’s some of our guys’ background, especially mine. I grew up log-ging in southwest Missouri and I’ve got a lot of experience in that. Any and everything as far as clearing, destruction (is) kind of what we’re more geared towards and also the tree service side of it,” Bradford said.

ROCK, STRIP MININGSteve Galmor has seen it all be-

fore after riding out the previous oil industry slumps. He and his company, Galmor’s/G & G Steam Service of Shamrock, was quick to make the change and diversify

in order to survive during the low oil market.

“I’ve kind of branched off into these rock quarries and strip min-ing operations before I got out of that Advantage part of the busi-ness that I had. So, yes,” Galmor said.

“We’re dealing with wind farms and counties, mainly, is what we’re dealing with right now. We’re getting some oil field work, but the majority of it is sec-ondary work, government work and county roads and stuff.”

GOVERNMENT WORKGovernment work is also the

area where Hutton Construc-tion of Elk City is concentrat-ing. Owner Doug Hutton says government contract service work has been the saving answer for his company which has become more involved in the bidding of projects like roads, highways, bridges and other infrastructure improvements.

“We’re diversifying into some state work, its state construction (and) infrastructure and it’s kept us busy so far. That’s been our savior since in October.”

Hutton is quick to point out that if and when that opportunity closes, he’ll move on to some-thing else. He’ll go wherever he can make money.

“We’ll try to follow the state work or what other avenues we can find, but the infrastructure work will follow the economy of

ENERGY

MARCH 2016VOL. 4 NUMBER 321,500 COPIES

Listen Live To The Exploring Energy Show weekdays from 8:05 a.m. - 9 a.m.

Online at www.exploringenergy.net

(See OPTIMISM, 2)

NEWS

BY PAUL JOSEPHKECO News Director

Companies Diversify During Oil SlumpInsIde ThIs Issue...

Agency FIghTs RulIng AgAInsT FRAckIng .....4

The FInAl dAys oF AubRey Mcclendon ..3

cRude oIl, nATuRAl gAs PRIces..............4

gAlleRyoF guesTs ............... 6

ReMbeeRWhen ...................... 5

See who stopped by or called in to the Exploring Energy radio show in March.

Oklahoma’s King of the Wildcatters

Courtesy photoHutton Constrcution of Elk City, Ok. diversifies by doing non-oilfield related

dirtwork and construction for the state of Oklahoma.

Rig CountMaRCh Count as of 03-11-16

oklahoMa

66 Rigs

217 Rigs

31 Rigs

49 Rigs

texas

noRth Dakota

louisiana

1 MonTh Ago

76 RIgs

-10

1 MonTh Ago

248 RIgs

-31

1 MonTh Ago

39 RIgs

1 MonTh Ago

-8

+247 RIgs

new MexiCo

13 Rigs

1 MonTh Ago

22 RIgs

-9

80.0

100.0

120.0

140.0

160.0

180.0

200.0

220.0

240.0

260.0

280.0

300.0

320.0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

IND

EX

(Bas

e=10

0 Ja

n 19

95)

October 2008 - 287.2

Dec2009187.5

November 2014 - 313.4

Base YearDec 1995

Last YearDec 2014

This YearDec 2015

Copyright © 2016 by Texas Alliance of Energy Producers. All rights reserved.

Texas Drilling Permits IssuedAnnual Average

Texas Rig CountBaker Hughes - Dec 2015

% Change12/14-12/15

Texas Petro Index IndicatorsDecember/Annual 2015

June 199983.8

Texas Petro Index: 191.7By Karr Ingham, Petroleum Economist

Crude Oil PriceAnnual Average

Natural Gas PriceHSC & Waha First-of-Month Spot Index

Annual Average

Texas Petro Index January 1995 - December 2015

Nov 1997119.8

Aug 2001143.0

Aug 2002117.1

Dec 2015191.7

$91.45 $90.69 $94.49 $89.49

$45.35

$0.00

$25.00

$50.00

$75.00

$100.00

$125.00

2011 2012 2013 2014 2015

$/b

bl

$3.99

$2.73

$3.60 $4.32

$2.55

$-

$2.00

$4.00

$6.00

2011 2012 2013 2014 2015

$/m

mB

TU

Natural Gas PriceHSC & Waha Physical Gas Prices

Annual Average

22,840 22,47921,471

25,792

10,549

-

5,000

10,000

15,000

20,000

25,000

30,000

2011 2012 2013 2014 2015

911838 843 872

324

0

200

400

600

800

1000

1200

2011 2012 2013 2014 2015

OIL AND GAS INDICATORS BASE YEAR LAST YEAR THIS YEAR % ChangeDecember/Annual 2015 December 1995 December 2014 December 2015 12/14 - 12/15

Oil Price/bbl (Monthly Average) 17.47$ 55.52$ 33.77$ -39.2%Oil Price/bbl (Annual Average) 16.75$ 89.49$ 45.35$ -49.3%Natural Gas Price (First of Month Spot Index) * 1.91$ 3.30$ 1.91$ -42.1%Natural Gas Price (Annual Avg) 1.46$ 4.32$ 3.43$ -20.5%Rig Count (Month) 255 872 324 -62.8%Rig Count (Annual Avg) 251 882 430 -51.3%Drilling Permits (Month) 919 1,506 727 -51.7%Drilling Permits (Annual) 11,244 25,792 10,549 -59.1%Oil Well Completions (Month) 390 1,559 788 -49.5%Oil Well Completions (Annual) 4,334 24,999 15,578 -37.7%Gas Well Completions (Month) 287 353 151 -57.2%Gas Well Completions (Annual) 3,778 3,585 2,787 -22.3%Oil Production Volume (000's bbls/month) 46,374 105,822 107,833 1.9%Oil Production Volume (000's bbls - Annual) 552,202 1,135,613 1,266,589 11.5%Oil Production Value ($000's Month) 810,160$ 5,874,804$ 3,641,982$ -38.0%Oil Production Value ($000's - Annual) 9,246,712$ 100,929,790$ 57,452,922$ -43.1%Gas Production Volume (000's MCF/month) 483,581 754,620 750,488 -0.5%Gas Production Volume (000's MCF - Annual) 5,705,756 8,640,146 8,806,806 1.9%Gas Production Value ($000's Month) 923,639$ 2,490,247$ 1,433,432$ -42.4%Gas Production Value ($000's - Annual) 8,376,241$ 37,060,727$ 22,430,557$ -39.5%Total Oil & Gas Employment (Month) 132,500 306,330 246,150 -19.6%Total Oil & Gas Employment (Annual Avg) 132,560 295,325 263,105 -10.9%Oil and Gas Extraction Employment (Month) 70,000 104,050 88,400 -15.0%Oil and Gas Extraction Employment (Annual Avg) 70,250 102,120 93,095 -8.8%Oil and Gas Support Employment (Month) 62,500 202,280 157,750 -22.0%Oil and Gas Support Employment (Annual Avg) 62,310 193,205 170,010 -12.0%TEXAS PETRO INDEX (Base = 100 January 1995) 97.2 309.8 191.7 -38.1%

Texas PetroIndexTexas Alliance of Energy Producers