MINOT, N.D. (AP) - As an entrepreneurial venture fueled by North Dakota’s oil boom, Credence Energy Services is proving its staying power even in slower times.
Kevin Black, Credence president for business development, understands oil. He’s part of his family’s third generation with businesses interests in the industry.
Credence, which provides chemical services for oil well operation, launched in January 2015 and ramped up in a few months later to become truly operational by April. Originally staffed with two people, the company now employs eight and is in the process of hiring more.
“We have only grown during this downturn and we are continuing to grow,” Black said. “The downturn has allowed us to really shine. We are small, innovative, quick to respond. We have been able to provide the solutions, the cost savings, the operators really need. So being a small business and with our background, it’s been an advantage.”
Black estimates the average age of the Credence workforce is early 30s, but the company also has consultants with up to 40 years of experience.
Three of his cousins are partners in the business. His family’s involvement in the oil business started when his grandfather came to Williston in the 1950s, so cycles of boom and bust are nothing new for them. They also know what it takes to thrive.
“In this industry, name recognition and reputation takes time to build, but also it’s a relationship business. Among people we have hired, we have strong relationships with a lot of operators already and because we are offering unique and innovative products, we have had a lot of business,” Black said. “Wells over time can build up mineral scale down hole. We have designed one-of-a-kind pump trucks that can more effectively and safely pump these chemical solutions and clean these wells up. It’s a design that’s unique to us. We are able, because of our design, to save operators significant amounts of money and remove a lot of the hazards and risks associated with pumping acid.”
The slowdown in the oil industry has changed market conditions, making it more competitive, he said.
“I absolutely love the challenge. I wouldn’t have it any other way. It’s just been a remarkable opportunity to do this, but it has been a roller-coaster,” Black said.
“It has forced us, which is not a bad thing, to really improve upon our supply chain, really improve upon our efficiency so we can deliver the savings our customers are looking for,” he added. “We believe we have really very strong products and we have unparalled service and as a result, our customers are giving us more and more opportunities.”
His goal is to see Credence become the premier chemical provider in the oil and gas industry in North Dakota, the Minot Daily News (https://bit.ly/2hrxV6a ) reported. A longer range goal is to expand into the Montana and Wyoming markets. Black said he senses a new optimism about the industry. Although the industry has sought to remain optimist for the past two years, he said, “This optimism definitely feels different.”
“I think there’s a lot of excitement and hope that 2017 is going to bring some better market conditions,” he said.
Born in Williston and raised in Minot and Grand Forks, Black attended North Dakota State University to earn his degree in industrial engineering and management.
“I hadn’t originally planned on going into the oil and gas industry, but at the time I graduated in 2010, things were, obviously, starting to boom out west,” Black said.
He was thinking of joining Boston Scientific, where he had interned in Minneapolis-St. Paul. He made a sudden course change and went to work for Champion Technologies in Williston, one of the largest privately held chemical companies.
Black left Champion Technologies to work for Baker Hughes in Minot as an account manager in the chemical division. Moving to Minot brought his family closer to Westhope, where his wife, Kalli, works at her father’s insurance agency. The couple has a year-old daughter, Reagan. Returning to Minot also felt like coming home to Black.
“I have always loved Minot,” Black said. “I just had so many fond memories and I had so many good friends who lived here.”
He spent three years with Baker Hughes before starting Credence.
Black serves on the University of North Dakota petroleum engineering advisory board. He plans to have UND students job shadowing with Credence over Christmas break and hopes to offer an internship to an UND or NDSU student next summer.
Petroleum engineering wasn’t an option in the state when he was looking at a college major, but industrial engineering has served him well.
“Industrial engineering really gave me the tools to look at efficiency - how do you improve the process; how do you save money; do it safer, faster, really lay the foundation for this company. We are taking existing processes and we are improving upon them,” Black said.
Black’s desire to make things better extends to his community. From the time he served as student body president at NDSU, Black has always felt the need to be involved and give back. As a past Rotary scholarship recipient, the organization has long been special to him, and he now serves as president of Minot Sunrise Rotary.
“The thing I love about Rotary is it is all about service. We do a lot of projects that focus on the youth of Minot,” he said.
Black also serves on the board of Minot Young Professionals, where he recently was involved in co-planning the Minot Leadership Summit.
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Information from: Minot Daily News, https://www.minotdailynews.com
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