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February 28, 2013

Local company benefits from advent of SCOOP

CHICKASHA — There is no question that large energy companies like Continental Resources will find a lot of value in the SCOOP. It's discovery and excavation will lead to billions of barrels of oil and natural gas.

Shale deposits similar to the SCOOP have produced revenue totaling in the trillions of dollars across the country.

These deposits require companies with incredible revenue streams to mine the raw energy from beneath the ground and this action benefits small local companies like Chickasha's Steagall Oil.

President Barry Stegall said his company has already seen an influx of business in the area looking to him for lubricants that are needed to cool drill bits.

Starting in 1979, Steagall Oil has already seen one oil boom and bust, but still managed to stand the test of time.

"Most people that were as small as I was at the time didn't make it through, but with God's help and a good banker we made it through," Steagall said.

Starting with only three people, Steagall Oil has grown into a company that employs over 50 people in offices located in Chickasha and Fort Worth. The company mostly buys finished products and sells them to energy companies in need of lubricant while also purchasing propane from the energy companies and selling it to third parties.

Steagall has seen such a steady growth of his business that he may even expend into southern Texas, but doesn't know exactly how much the SCOOP will contribute to that effort.

"I am certainly not educated enough to make a guess at how much business this will bring in," he said. "I just hope companies are a little more conservative than they were in that first boom. Everybody was spending money like it wouldn't end."

Despite his company's growth, Steagall has maintained his business as one dominated by a family first mentality. His son runs the Fort Worth office, his brother is the entire company's general manager and his another brother is the company's primary lubricant engineer.

"A lot of people have stuck with me over the years," he said.

Due to the competitive nature of themarket, Steagall wouldn't elaborate on what energy companies buy lubricant from him, but he did say his company keeps enough in stock to be a major supplier for this part of the country.

"We are one of the largest lubricant suppliers to Oklahoma, Texas and other bordering states," he said.

The future seems bright for this local company as more petroleum and natural gas is pulled from the ground by various energy organizations,

Steagall said he could see the possibility of continued expansion.

"I'm 71-years-old. I'm tired, but the younger people are definitely looking into it," he said.

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