The petroleum engineering curriculum at the University of Pittsburgh definitely has a claim to notoriety for preparing some of the big names in the industry for outstanding careers in the American oil game. Mark G. Papa is just one of those who excelled past the rest after receiving his bachelor’s degree way back in 1968. With an early start at the Belco Petroleum Corporation he was able to fine tune his technique and then go on to found EOG (Enron Oil & Gas) Resources where he served as chairman and CEO and then held a role on the board of directors. He now has his sights on the Permian Basin as he negotiates his way back into the profits from this hot spot in western Texas.
It seems like a couple $100 million just is not enough to keep the papa away from his children. He has decided to make the reentry due to the oil shortfall that stemmed from the significantly lower barrel prices than when he was doing his thing back in 1999-2013. Riverstone Holdings, under leadership of David Leuschen and Pierre Lapeyre joined forces with the industry giant with the hopes of creating another Enron, but Mark Papa understands that only once in a lifetime does such an opportunity create itself, yet he is still working hard to produced dividends with using the $500 million that they were able to round up as working capital.
The power now lies in Permian, and he admits to underestimating its pure potential during the time preceding his retirement. With over 2.2 million barrels being retrieved daily, drillers are still working out the best way to unearth and explore the rich area using such new plays as hydraulic fracturing and horizontal drilling. Papa foresees an ever increasing demand for American oil despite some industry opponents claiming that there will be a peak reached that will destroy the price that they need to keep getting in order to see a great return on investment.
Centennial Resources Development aims on taking advantage of the flexibility that is available through the Permian Basin in order to outdo the Deep Water initiatives which require a lengthy buildup time before they can be appropriately drilled and the barrels of oil retrieved. It might be a somewhat risky venture anyhow, but if there is anyone that has the capability of gathering the right names and talent in order to make things happen then it is the American Legend now looking to rename himself as Papa Permian.