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rig-up and drilling operations. A well-maintained rig also has a
higher resale value. A rig crew of 16 to 18 people is required
to operate a deep well rig.
The oil and gas industry historically has ups and downs,
with periods of favorable market conditions (boom periods) and
unfavorable market conditions (bust periods). One boom period
began in 1973 when OPEC cut oil production, increased crude oil
prices approximately 70 percent, and established an embargo on
oil sales to the United States. Spurred on by rising oil prices,
the U.S. domestic oil and natural gas exploration and production
industry achieved several years of unprecedented levels of
drilling activity. As a result of rising oil and natural gas
prices, Congress' authorization of the construction and filling
of the Strategic Petroleum Reserve, harsh winter conditions in
1976-77, deregulation of certain deep natural gas, and record
demand for oil and natural gas, oil and gas drilling activities
continued to expand through the late 1970's and into the 1980's.
CDC's Organization, Business Plan, and Financing
J.D. Allen and Carl W. Swan organized CDC as an Oklahoma
corporation on October 27, 1980. Messrs. Allen and Swan have a
history of involvement in oil and gas activities. Edwin D.
Arnold joined CDC as president at the time of its incorporation.
Mr. Arnold had worked over 25 years in the oil and gas drilling
business before joining CDC.
CDC engaged in the contract drilling of oil and gas wells.
Initially, CDC planned to design and construct a standardized
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Last modified: May 25, 2011