David G. Griffin is coming up on his 50th year in the oil and gas business, having graduated in 1960 from what is now known as Oklahoma State University, which he attended on a basketball scholarship. The Midland-based mechanical engineer (petroleum option) has drilled from North Dakota to South Louisiana to East Texas; he even worked offshore for a short time. His career has taken him from Amerada (now Hess Corp.) as a green engineer in North Dakota to the presidency of NRM Corp., one of the early public drilling income funds in the late 1970s and early 1980s. He and some friends also bought and took private a penny stock E&P called Merit Energy Co. in the late 1980s that had included John Wayne and other movie stars as investors.

“I’m an old-school, free-enterprise guy who likes hard work so you can guess how I feel about entitlements and handouts. But it’s a mystery to me and all who know me how I’ve lasted this long in the oil business,” jokes the native of Hope, Arkansas.

Griffin has been chief executive of Griffin Petroleum Co. in Midland since 1983 (he has also been its president). The private company generates prospects and operates in the Permian Basin and elsewhere. It now includes his son, also a petroleum engineer.

“He and I run the company. He’s a good hand and everybody marvels at how good he turned out given I’m his daddy. There must have been a genetic cycle skip,” the older Griffin quips. “He has worked his way up to partner and president of the company and now he’s trying to skid my rig to low-paying ‘advisor’ with no authority.”

That sense of humor has enabled him to weather all business cycles. Meanwhile, Griffin has co-authored SPE papers, served on the National Petroleum Council from 1990 to 1993, and was named Permian Basin Engineer of the Year in 1997 by the Texas Society of Professional Engineers, among his many other professional activities and honors. Also active in several Midland charities, he’s currently chairman of the board for High Sky Children’s Ranch.

A talk with Griffin gave us a portrait of how private independents are faring in the Permian Basin.

Investor How have lower oil prices affected you?

Griffin If prices go back up, we have probably 50 to 75 wells (PUDs) to drill on nonoperated Wolfberry projects, but the costs are not down enough just yet. We’re not drilling but we are getting warmed up. We could do okay with $65 or $70 oil, but we’d like to see $75-plus to really sleep better at night. In the Wolfberry, we’re talking about $1.2- to $1.4 million for drilling and completion costs currently and it needs to be lower.

Casinghead gas is an important part of the cash-flow stream on Wolfberry wells (about 15%-20% now) and the price of natural gas is adversely affecting the economics.

We will drill some moderate-risk San Andres/Clearfork prospects on the Central Basin Platform later this year, plus continue to develop our shallow production in Pecos County, Texas, with the goal of waterflooding at some point.

Investor What philosophy has kept you going through the cycles?

Griffin “There’s never been a horse that ain’t been rode, and never been a cowboy that ain’t been throwed.” That keeps me grounded when I think I’m gettin’ it all know’d up. I have a motto for our crew: Honesty, integrity, fair play and social responsibility—plus, add value as you go. And don’t forget to have fun.

(Famed college basketball) coach John Wooden is one of my heroes. One of his sayings that I use to inspire our group is: “The player that makes the team great is better than a great player.”

Investor What lessons do you draw on?

Griffin The last hiccup in prices didn’t teach me anything new I hadn’t already experienced. I already knew not to get too “chesty” when oil prices run high—don’t run up a bunch of debt. Money is a lot easier to borrow than it is to pay back.

Nowadays one of the many buzz phrases is “keep your powder dry,” but I’m giving a talk soon on “How to survive with wet powder.” Costs have always lagged product prices both going up and coming down and they haven’t gone down enough yet to send us back drilling some of our resource-play acreage.

Here’s another major-league key to victory: Operations, operations, operations. Our folks know how to get things done in the field and keep costs down.

Investor Has your focus changed over time?

Griffin I’ve never been smart enough to know where I shouldn’t be. I’ve always said that with the right people on the ground, in this day of high-speed communication, we can operate literally anywhere in the U.S. other than offshore and on the “Left Coast”—too many greenies there. We even have leases in South Dakota, so we’re not afraid to wander from our home base.

Investor I assume you’re never going to retire?

Griffin This business is so infectious and doing deals is exciting. I always think the “big un” is just around the corner. I don’t fish or garden and physically can’t play golf every day, so I like to try to pull my weight. We’ve got 155-plus years of experience covering every discipline, and we all share ownership in the deals we do.

I also want to finish my book, “Working Without a Net,” which is how I’ve felt most of my career. And I have a book of poems that’s been in the works a long time. Some of ’em even rhyme.