Wildcatting legends outline the secrets to their success, many of which were lessons learned from their failures.

A wise man recently noted that a herd of sheep possesses more risk-taking gumption than today's typical oil man.

While allowing that this is a bit of an overstatement, I think it's true that the derring-do of past wildcatters has been replaced by a more conservative approach. At its best, the new conservatism helps companies dodge the "spend it while you got it" mentality that has led so many companies to ruin in the past. At its worst, this approach is often geared more toward making upper management and Wall Street happy than finding new oil and gas reserves.

At a recent dinner hosted by the Houston Geological Society, some of history's greatest wildcatting legends gathered to reminisce about their past trials and triumphs and to offer their thoughts on the current state of affairs in the oil industry. Among the noteworthy were: Michel Halbouty, recognized as one of the greatest wildcatters in the industry's history; Bill Barrett, founder of Barrett Resources and discoverer of five giant fields; Thomas Barrow, former president of Humble Oil and instrumental in the discovery of the Prudhoe Bay field; Marvin Davis, founder of Davis Oil and one of the industry's most colorful characters; and Robbie Gries, founder of Priority Oil and Gas and the first woman president of the American Association of Petroleum Geologists.

The evening's discussions were not merely a trip down memory lane. There seemed to be a general feeling of frustration among the speakers, as if the very credos upon which they founded their careers had gone the way of cable tool rigs and nitro-fracs in the face of relentless pressure from on high to think inside the box, stick to the data and not take any chances.

"Geology has grown on the scale of probability rather than on the rigid back of mathematics," Halbouty said. "We use our powers of deduction and observation. Without either one of these qualities, the effectiveness of the practice dries up precipitously."

Relying on probability does mean making a few mistakes, and most of the speakers had made their share. Halbouty recalled drilling 36 straight dry holes, which "came near to destroying me," and Davis had an even worse story: an 80-well program in the eastern portion of the Denver-Julesburg Basin that resulted in 80 consecutive failures. "I was convinced there was no oil left in the United States," he said.
Gries recalled crying for three straight hours after drilling a dry hole, and Barrett wryly noted that he has the record of drilling the deepest dry hole in the Rocky Mountains.

But it's that willingness to take risk that has set these people apart. "Hitting singles are for guys named Peewee," Barrett said. "Guys named Babe go for the fence. You need to take a swing at the big reserves. To paraphrase Shakespeare, it's better to have drilled and lost than never to have drilled at all."

Much of that attitude seems to be lacking in the hallways of today's oil companies. "Many good oil finders are ridiculed and squashed by bosses who intimidate rather than encourage ideas," Halbouty said. "Fear stifles an explorationist. Creativity and boldness are destroyed by fear of failure."
Barrett outlined several lessons that he's learned:

* If necessity if the mother of invention, then technology might be the father. Technology hastens the move from an unconventional to a conventional reserve.

* Despite our reliance on geology and geophysics, it's still about creativity and the motivation of talented people. The team needs to feel invested and not be overly judgmental and critical.

* Be a "VIP" - espouse vision, integrity and performance. Reputation is more important than reserves in this business.

* Innovation is exacting, precise work. Technology allows the geologist to process information, but he needs to know the importance of that information. The details are the difference, and a lot of companies overlook details that might lead to unconventional discoveries.

* It's important to challenge unnecessary and onerous regulations. It's important to protect the environment, but you also need to fight for what's right.

* Listen to your gut. Science, technology and numbers are part of the business. But trust your instincts.
"I've been very fortunate, even lucky, some might say," Barrett said. "But the old adage is, the harder you work, the luckier you get. Geology has been the one consistent thread throughout my success.
"All of my major discoveries were found and developed with geology. If you utilize geology, it helps you find a lot of gas."

Ultimately, wildcatting is about taking risks, and Gries said that some of the best risk-taking comes when challenging a dogma. "That's when we're living up to the standards of the profession."

Gries has challenged dogma a few times in her career, notably when she forced the US Geological Survey (USGS) to rethink its stance on the volcanic fields in the San Juan Basin in New Mexico. Despite the government's assertion that the field rested directly on pre-Cambrian formations, Gries followed rumors of oil seeps in the region until she found one for herself. When it was tested, it proved to be Cretaceous crude.

"The USGS told me they were proud that I forced the issue and got it drilled," she said. "It's not only about taking risks but about challenging those dogmas."

Finally, it's about the spine-tingling thrill of finding oil and gas. "To hear that brake hitting your pay zone and hearing it scream because the zone is so porous - that's one of the most thrilling sounds," Gries said.


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