How Did Apache Corporation Begin in 1954?

David Senra says Raymond Plank founded Apache Corporation in 1954 with $250,000 after Minneapolis oil investors told him he must take over and manage their assets. The firm knew nothing about finding oil or completing and producing wells, did not feel qualified, and proceeded nonetheless.

Little drilling in the United States during World War I and World War II had left American oil resources rapidly depleted. After the wars, Washington incentivized a domestic search through tax incentives and raised graduated income taxes to pay down immense war debts. The top tax rate exceeded 90% of gross income. High tax rates plus drilling and production tax incentives pushed heavily taxed people to invest in oil and gas. Accounting and tax work tied to Minneapolis oil investors grew through oil and gas contacts. When charges for drilling, completing wells, or acquiring and holding acreage looked out of line with real costs, Plank checked oil field service providers directly.

Kickback checks were fattening the purses of unscrupulous promoters. He reported the findings to a group of investors, and the response was instant and unanimous: take over and manage the assets, which were substantial. Apache opened with a handful of employees: a geologist, an executive assistant, and a land man.