Biggest independent oil company of Texas

[the-lost-son]

JR often quotes his Daddy‘s dreams that Ewing Oil one day should become the bigges „independent„ oil company in Texas.

I never thought about it - but I don‘t get the term „independent“. Why not just the biggest oil company in Texas? Is it a reference to the „seven sisters“ in the American oil business and most companies being tied to them?
I mean, if you run and own a company - it‘s independent, or not?. I assume there weren‘t many state-owned oil companies. I think, private independent companies should be the standard, especially in US economics.

Can someone please enlighten me?

 

[James from London]

I think it's to do with going public and the stock exchange and having a board of directors and shareholders to answer to and all that stuff.

 

[Lastkidpicked]

Glad you asked, @the-lost-son

If you don't mind, I'll jump in and add to @James from London and also give you the view from here in Texas.

Out here, there were the Seven Sisters and then everybody else. They consolidated so now I should say there are the Supermajors and everybody else.

The thing people don't realize is that even though there are only six Supermajors, there are thousands of smaller, independent oil companies in Texas and Oklahoma. Think companies in the show Dallas such as Harwood Oil, Bradley Oil, Hurst Oil, Luce Oil, and of course, Ewing Oil. As you all know, I work for one of the independents here in Texas. (But not one of those).

When times are good, the supermajors pile up cash. Then when times are bad, they use that cash to buy smaller companies.

In the reunion movie J.R. Returns, Westar was one of the Seven Sisters and Ewing Oil was one of the bigger independents, now owned by Cliff Barnes. There is a great scene in J.R. Returns where J.R. meets with Carter Mckay to try and talk him out of buying Ewing OIl.

If you watch this scene, notice how both Larry Hagman and George Kennedy each down play the scene-- just two powerful figures having a quiet conversation. Very well acted.

J.R.-- I think we should talk. About Westar buying Ewing Oil. I'm curious... Why?

Mac-- It's a good company. Ewing still has some undeveloped fields and we have the money to develop them.

J.R.-- Well assuming this acquisition does go through, what happens to Ewing Oil? Does Ewing Oil cease to exist?

Mac-- Like Jonah and the whale, we would swallow it whole.

J.R.-- You still trying to pick off the independents one at a time aren't you?

Mac-- Something along those lines.

J.R.-- Say you did buy Ewing Oil and then turned around and sold it (to me) for a substantial profit. That would be quite a feather in your cap.

Mac-- That's never going to happen. Ewing oil is simply a small part of a long range program I promised my board.

J.R. Never say never, Mac. One thing I've always admired about you is you never put promises ahead of profit.

...

After this conversation, J.R. is able to get the upper hand on Carter Mckay. J.R. lays out how well his master plan has worked. His final insult is so funny, and Larry Hagman delivers it with the perfect understated delivery:

"Don't kid yourself, Mac. Your long range program just fell on it's ass."

HAHAHAHAHA! I'd encourage you to use that line whenever you can. I do.

 

[Lastkidpicked]

I don't want to get all sentimental here, but notice that these small, independent oil companies are usually named after the person who founded them. Look at Jock, at Jordan Lee, and Andy Bradley. Their companies are part of them. Their companies were built from their blood, sweat, and tears.

That's why we are all a bit saddened when one more of the independents sells out to the majors.

 

[DallasFanForever]

This is why I love this board! I always learn something new in these discussions.

 

[Lastkidpicked]

This is why I love this board! I always learn something new in these discussions.

Exactly why I love coming on here!

One thing I enjoy about you all on these boards is that you pop into my head from time to time. I'll drive past a small Texas town and think, "Right over there is where Ewing 23 would be. I'm going to mention it on the boards and see what people think"

Or "This is the EXACT gas station where the crew would have stopped to fuel up when filming Dallas. I'm going to go on the board and see what people have to say about that."

Good times. . .

 

[Sarah]

When I was younger, I used to think that the Seven Sisters were actually sisters. You know like Joanne, Lisa, Debbie...that sort of thing...

 

[Snarky Oracle!]

Didn't they say at one point that Ewing Oil was "the biggest independent oil company in the southwest"?

 

[Jabari Lamar]

I think it's to do with going public and the stock exchange and having a board of directors and shareholders to answer to and all that stuff.

Yeah, ultimately, as big as Ewing Oil or any of the other smaller companies could get, they just couldn't compete with the major public companies, unless they went public themselves. And that's something Jock apparently never wanted to do, for those reasons. So being the biggest "independent" company was the goal.

 

[Jabari Lamar]

The thing people don't realize is that even though there are only six Supermajors, there are thousands of smaller, independent oil companies in Texas and Oklahoma. Think companies in the show Dallas such as Harwood Oil, Bradley Oil, Hurst Oil, Luce Oil, and of course, Ewing Oil. As you all know, I work for one of the independents here in Texas. (But not one of those).

When times are good, the supermajors pile up cash. Then when times are bad, they use that cash to buy smaller companies.

Right, and that's why on Dallas they had "the cartel" which was an unofficial alliance of the biggest independent oil companies who, when needed, would collaborate on various deals that, by themselves, they wouldn't have had the resources to compete with the majors.

In the reunion movie J.R. Returns, Westar was one of the Seven Sisters and Ewing Oil was one of the bigger independents, now owned by Cliff Barnes.

I believe Westar was meant to be separate from the Seven Sisters. IIRC there was a scene in one of the later seasons when Bobby wanted to sell Ewing Oil and get out of the oil business altogether, and he was meeting with Harv Smithfield about potential buyers, and Harv first mentioned that Westar had made an offer, but Bobby didn't really want to sell to them because of their history with McKay, and then Harv said the Seven Sisters had made an offer too (I guess they would've bought it collectively?) but on the condition that Bobby remain as President and Bobby didn't wan to do that either. And that's when he ended up selling it to Genie instead.

 

[Jabari Lamar]

I don't want to get all sentimental here, but notice that these small, independent oil companies are usually named after the person who founded them. Look at Jock, at Jordan Lee, and Andy Bradley. Their companies are part of them. Their companies were built from their blood, sweat, and tears.

Which is exactly why most of those companies never wanted to sell, and instead remain independent. But sometimes the costs would be too much. We see it in other industries too. Big chains like Borders and Blockbusters would come to town and put small bookstores and videos stores out of business. Walmarts whole business model is based on doing that.

 

[Billy Wall]

Lol...Continuity wasn’t a strong point. Small independent company like Ewing Oil owning the tallest building in all of Dallas. And Bobby distinctly once said that “we have one asset, Southfork.” I guess a skyscraper isn’t an asset.

 

[Lastkidpicked]

Harv said the Seven Sisters had made an offer too (I guess they would've bought it collectively?) but on the condition that Bobby remain as President and Bobby didn't wan to do that either. And that's when he ended up selling it to Genie instead.

That's a very good point, Jabari. And again, we see this in real life all the time. If Punk Anderson owns a successful company, you know it's successful because of Punk. So if you bought him out, you'd ask him to stay on as president. Often, you'd make that a condition of buying his company.

Which is a pretty good compliment, by the way.

 

[Angela Channing]

I'm sorry for being a bit dim but what are the Seven Sisters? I only know it to be a constellation of stars or a station on the London Underground, I don't know what it is in reference to the oil business. I don't even remember when it was referenced in Dallas.

 

[Sarah]

Big Oil - Wikipedia

en.m.wikipedia.org

 

[the-lost-son]

Glad you asked, @the-lost-son

If you don't mind, I'll jump in and add to @James from London and also give you the view from here in Texas.

Out here, there were the Seven Sisters and then everybody else. They consolidated so now I should say there are the Supermajors and everybody else.

The thing people don't realize is that even though there are only six Supermajors, there are thousands of smaller, independent oil companies in Texas and Oklahoma. Think companies in the show Dallas such as Harwood Oil, Bradley Oil, Hurst Oil, Luce Oil, and of course, Ewing Oil. As you all know, I work for one of the independents here in Texas. (But not one of those).

When times are good, the supermajors pile up cash. Then when times are bad, they use that cash to buy smaller companies.

In the reunion movie J.R. Returns, Westar was one of the Seven Sisters and Ewing Oil was one of the bigger independents, now owned by Cliff Barnes. There is a great scene in J.R. Returns where J.R. meets with Carter Mckay to try and talk him out of buying Ewing OIl.

If you watch this scene, notice how both Larry Hagman and George Kennedy each down play the scene-- just two powerful figures having a quiet conversation. Very well acted.

J.R.-- I think we should talk. About Westar buying Ewing Oil. I'm curious... Why?

Mac-- It's a good company. Ewing still has some undeveloped fields and we have the money to develop them.

J.R.-- Well assuming this acquisition does go through, what happens to Ewing Oil? Does Ewing Oil cease to exist?

Mac-- Like Jonah and the whale, we would swallow it whole.

J.R.-- You still trying to pick off the independents one at a time aren't you?

Mac-- Something along those lines.

J.R.-- Say you did buy Ewing Oil and then turned around and sold it (to me) for a substantial profit. That would be quite a feather in your cap.

Mac-- That's never going to happen. Ewing oil is simply a small part of a long range program I promised my board.

J.R. Never say never, Mac. One thing I've always admired about you is you never put promises ahead of profit.

...

After this conversation, J.R. is able to get the upper hand on Carter Mckay. J.R. lays out how well his master plan has worked. His final insult is so funny, and Larry Hagman delivers it with the perfect understated delivery:

"Don't kid yourself, Mac. Your long range program just fell on it's ass."

HAHAHAHAHA! I'd encourage you to use that line whenever you can. I do.

Thank you very much. What great competence this forum offers. Fascinating to realize how close a series mirrored reality.
Much appreciated.

 

[Angela Channing]

Big Oil - Wikipedia

en.m.wikipedia.org

Thank you, I hadn't heard the term before. And it was mentioned in Dallas? It must have completely gone over my head because I didn't know what it meant.

 

[Sarah]

Thank you, I hadn't heard the term before. And it was mentioned in Dallas? It must have completely gone over my head because I didn't know what it meant.

I know JR mentioned them more than once in conversation.

 

[DallasFanForever]

Not to be confused with the Sinister Sisters. That would be Kristin, Katherine, Jessica and Michelle

 

[Lastkidpicked]

Not to be confused with the Sinister Sisters. That would be Kristin, Katherine, Jessica and Michelle.

Hahaha! Nice one!