Last month, Houston-based independent oilman and consultant Townes G. Pressler became chairman of the Texas Alliance of Energy Producers at its annual meeting in Wichita Falls, Texas. The Alliance represents 3,350 members at the state and federal levels and is the largest state oil and gas association in the nation. It also plays a critical role in educating the public through its affiliation with the Foundation for Energy Education.

In his day job, the active Pressler (who still regularly competes in 5K runs) is owner and president of Tepee Petroleum Co., and Pressler Petroleum Consultants. He started the latter in 1985 to provide reservoir engineering, oil and gas property evaluations, due diligence and expert witness services.

It was inevitable that Pressler would enter the oil business. His first job, at age 12, was as an “office boy,” as they were called in those days, for independent Paul Barnhart. Pressler was a roustabout and gauger for Barnhart in the summers during high school, working in the Spraberry Trend in West Texas. His father, Herman, and grandfather, Judge E.E. Townes, were in the oil business too, so at age 14, young Pressler decided to become a petroleum engineer. He did, earning his degree from the University of Texas in 1959. (Son Townes Jr. is also in the business.)

Pressler’s first job out of UT was with Humble Oil & Refining Co. (now ExxonMobil), and he worked for several small independents after leaving Humble, including Barnhart again, before creating his own company in 1985. He also founded an oilfield service company, Total Production Services, which he sold in 2008. He served on the board of Bellwether Exploration, later part of Petrohawk Energy, and is a member of the board of Adams Resources & Energy.

He is active in the community, serving on the board of Texas Children’s Hospital, and as chair of the Rip-ley Foundation; he has served on each of these boards for over 25 years. Oil and Gas Investor caught up with him recently to ask about Tepee and his goals with the Texas Alliance.

Investor You learned a lot at Humble, your first oil-patch job?

Townes G. Pressler

Townes G. Pressler

Pressler My first assignment was in Tomball, north of Houston, as a junior engineer. After a year I was transferred to their research center in Houston to work in the core lab and the PVT lab, and to attend the company reservoir engineering school. My seven years with Exxon were great. I worked for and with great people.

Investor How’d you like working in the field?

Pressler It was a terrific experience. I was on my own, got my hands dirty and learned…what could be better.

Investor What is Tepee up to?

Pressler We traditionally worked on the Gulf Coast and South Texas, but in the past few years we got into the Fayetteville and then the Marcellus, with private Houston firm Alta Resources…we bought acreage, developed it and sold those interests. Now Tepee is fairly active in Washita County in the Granite Wash on a nonop basis through some mineral interests we own. There is a lot of drilling going on there. We’ve been a long-time partner and investor with Alta and we continue that relationship today.

Investor What problems do Alliance members face?

Pressler The Administration’s efforts to repeal tax incentives, such as percentage depletion, intangible drilling costs and passive loss exemptions for investors, as well as its attempts at regulatory overreach, especially with the EPA, represent serious threats that could have a significant negative impact. The majority of our members are small independents, and these are the companies that can least afford any additional costs. Losing these long-standing tax incentives would be reflected in a reduction of drilling activity.

Our industry is made up of rugged individuals who think outside the box. Through our innovation in recent years—especially in the shale plays—we’ve made major progress in reducing our foreign oil imports.

That’s a real game-changer. To jeopardize that success is an extremely serious matter.

Investor What is the Alliance focusing on now?

Pressler We will continue to fight for sound energy legislation and regulation with our industry partners at all levels of government. The need to “educate” our policymakers has never been more important. At the same time, though, I’d like to emphasize the crucial need to “educate” the general public as well. Through our affiliation with the Foundation for Energy Education, we are building new bridges of understanding between energy producers and the consumers we serve. The foundation, a statewide energy education program, includes education using radio, print and television, and initiatives that are conducted in schools throughout Texas in collaboration with the Offshore Energy Center.

Investor What sorts of advice can you pass along?

Pressler The advice I have received has been mainly by example. I learned a lot by the example set by my parents, and by Paul Barnhart, my first boss, a great petroleum engineer and a great businessman. Your name is your most valuable asset. Be the best you can be in whatever endeavor you undertake. Most “lucky” people are really hard-working people. And, do not skimp on due diligence! If you haven’t found anything, you haven’t dug deep enough.

—Leslie Haines

Comments