The Past, Present and Future of Natural Gas in Oklahoma
In 1977, I began working as a petroleum landman thanks mainly to my great western Oklahoma friend Larry Wade. Larry had encouraged me visit with another great friend, Cooper West. Cooper offered me the opportunity to work for his company which launched me into the energy industry.
I did not realize at that time that some of the oil and gas leases I was purchasing would wind up as locations for some of the deepest natural gas wells not only in the Anadarko Basin of western Oklahoma but in the world (over 20,000 feet) and that natural gas would be playing a significant role in meeting the energy needs in the 21st Century.
However, the boom our industry experienced in the late 1970s and early 1980s attracted the attention of our policy makers, and there was an attempt to implement a Windfall Profits Tax. I remember being quoted in an Oklahoma City newspaper in 1980 as saying that the Windfall Profits Tax would be devastating to the energy industry. Twenty-six years later, California Proposition 87, a tax proposal on the oil and gas industry, was presented to California voters and fortunately defeated. Nevertheless, this demonstrates the lack of communication between our industry and our government.”
It is important that there be an understanding of the history of natural gas in Oklahoma especially the drilling for deep natural gas. In 1977, I began primarily purchasing oil and gas leases on behalf of The GHK Company, a company led by Robert Hefner III through Cooper West’s firm.
Robert Hefner III was the pioneer who led this Nation towards natural gas. In 1959, Hefner, age 24, founded the company. He is now known as the “Father of Natural Gas”
GHK drilled a well in western Oklahoma near Elk City, named the #1 Green well. The well was completed in 1969 to 24,473 feet. It was then the second deepest well in the world.
Along the way, Robert and his team met the challenges of “innovating the technologies”. He also had the challenge of communicating to the leaders of this country that natural gas was uneconomical to produce at controlled prices. Therefore, he led the effort to deregulate natural gas prices in the 70s. His pioneer spirit and drive are major reasons that today billions of dollars have gone into the economy.
The government stepped in after the deregulation passage with a piece of legislation that did not allow the use of natural gas for electric generation. This was a great setback to the natural gas industry.
Robert Hefner III’s drive, persistence and focus on natural gas led GHK to several countries for exploration. He founded natural gas fields not only in western Oklahoma and eastern Oklahoma but throughout the world.
He has appeared before 18 Congressional committees “testifying on natural gas pricing, deregulation, and the abundance of America’s natural gas resources”.
Today, it is vital to Oklahoma’s economy that we have a strong natural gas industry. Furthermore, it is extremely important to this Nation that we have a healthy natural gas industry.
Thanks to Robert Hefner III, a strong foundation has been established to carry on the “natural gas” torch throughout this century and beyond. In my next article, I will review with you his book, “The GET”, The Grand Energy Transition which a documentary based upon his writing has been produced. In fact, I encourage you to buy the book. It is a great read, and it is a means of better understanding the importance of natural gas.
Should you have comments, topic suggestions, and/or questions, please email me at mark@thegtdgroup.com. America Needs America’s Energy! Together, we can make a difference!