Financially, we have always maintained a strong balance sheet and we are taking steps to protect them fairly quickly during downturns. During the recent downturn, we all experienced wage cuts, starting at the top down. The company`s management waived dividends at an early stage. We didn`t take a job if they weren`t lucky enough to have a positive cash flow for the company. When walking a tightrope, there is little room for error. A bad decision from a good company can make all the difference. Today, Justiss Oil Company provides drilling, exploration, well and leasing services on the southern Gulf Coast, from Texas to Alabama. Company President Jim Justiss III shares his thoughts on his company`s success, the nature of the oil and gas industry, and the key challenges and opportunities ahead. Phillips 66 has established Community Advisory Committees (ACPs) throughout its facilities, made up of community volunteers, and meets with them regularly to share ideas about the company`s presence, operations and initiatives, and to address community concerns. You could say that James “Jim” Justiss III was born with oil in his blood.
His grandfather, James “Jick” Justiss Sr., began as a mule butcher in the 1920s, transporting oil and gas equipment to southern Arkansas during the El Dorado boom. Jick was noticed by legendary Texas oilman H.L. Hunt and worked for Hunt for many years, directing his field operations. With this experience and a partner, Jick Justiss founded the Justiss-Mears Oil Company in Jena in 1946. The company flourished over the years and his son James Justiss Jr. eventually began working for the company – first as a tool pusher and later as president. Times were good in the late 1970s: two major acquisitions (Baker Tank Company and Altech) brought new tanker production capacity into service and the company had 28 active platforms. In 1980, Jick Justiss died and the Mears family decided to sell their interest in the company, which was renamed Justiss Oil Company. The crash that rocked the industry in 1982 was a major challenge, but Jim Justiss Jr. managed to keep the company on track. Jim Justiss III joined the company in 1990 as a geologist and eventually served as Vice President of Operations for many years.
In 2013, he was appointed President, his father became Chairman of the Board. When I first worked in the company in 1990, we had to go to Monroe or Shreveport to check government records of wells. Everything was on paper, and we had to draw maps, make photocopies and hope not to forget anything before driving the hour and a half back to Jena. Fortunately, today we have SONRIS – the best data system for public access to oil and gas records that a state has. From 1970 to 2019, combined emissions of six common pollutants in the U.S. fell by 77 percent. Your family has long been involved in various industry organizations – you and your father have both served on the boards of groups such as IADC and LMOGA, and you are active in LOGA, LAGCOE, API and others. Why do you think it is important for companies to get involved in such professional and trade associations? The industry often changes a lot of money, so the public believes that the industry and all the businesses that provide it with goods and services are very profitable. In most cases, this is far from the truth. I can`t think of an independent oil and gas operator in Louisiana with conventional production that needs a tax deduction. So yes, it`s important for people to see the human side of the company. Would you recommend oil and gas as a career to a future graduate? Which career paths (geology, business, operations management, technology) do you think offer the best prospects? When you look at the future of Justiss Oil Company and the industry as a whole, what do you see? In addition to well and well completion services, Justiss Oil Company also provides design, fabrication and repair services for storage tanks and pressure vessels through our Baker Tank/Altech division in Arp, Texas.
We are very close to our farms. Jena is located on the LaSalle Arch, a distinctive underground structure that influences production within the Wilcox trend of central Louisiana. This production brought my grandfather here as an employee of Mr. H. L. Hunt. His knowledge of this flat oil production gave him the confidence to start this business in 1946, but it is not the only or even the main reason why we decided to stay here. In 2020, Plains and its subsidiaries invested more than $2.9 million in cash and in-kind donations in projects and initiatives that meet the local needs of communities in their operating areas. Over the years, we have had to become lighter, which unfortunately sometimes has resulted in layoffs. Since 2014, the number of employees at our head office has halved. We also don`t have a super complicated long-term budget.
We pride ourselves on being able to spin a penny and take advantage of an opportunity when the opportunity arises. Sometimes it`s as simple as counting our money and weighing the risk against the reward for effort. Staying out of debt was essential for us. IPY`s Community Engagement Guidelines promote the safe and responsible development of natural gas and oil resources by involving and respecting the communities in which we operate. Founded in 2021, API Energy Excellence is the industry`s unified approach to accelerating safety and environmental progress. As part of this program, stakeholder engagement is a critical component, and API members are committed to improving the integrity of operations across the industry by applying best-in-class standards, implementing employee training programs, and participating in performance initiatives. How does technology impact your work? How do you think this will shape the future of the industry? James “Jim” Justiss III, President of the Justiss Oil Company While we try to be optimistic, we also have to be realistic. The U.S.
onshore market is very mature. This is especially true for the Gulf Coast basin. Most of the large fields were found a long time ago. Any conventional well that pursues smaller and smaller targets is either productive or condemns a particular area around it as well as non-commercial. Our industry works every day to be a good neighbour and have a positive impact on local communities. We are committed to supporting constructive interactions between industry, regulators and surrounding communities/populations that may be disproportionately affected and addressing potential unfair impacts. IPY member companies implement a high level of environmental, social and health impact assessments for new projects and existing operations to continuously assess and mitigate potential impacts. It is industry practice to encourage broad stakeholder engagement at every stage of a project, and natural gas and oil companies often have dedicated employees who focus on understanding, discussing and appropriately addressing community concerns related to our operations. These organizations were formed to promote the interests of this industry, and the work they do helps us all. They keep us informed of critical issues, support industry education, and host valuable events.