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. The 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 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. NPD was not well capitalized. It was saddled with tremendous debt since inception and was paying 21.25% (prime rate plus 0.75%). So 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.