Computalog
By 1976 with his new DDL technology and his lead in innovative open hole solutions, Marvin Gearhart was looking for ways to expand his company and gain a step on industry giant Schlumberger. Open hole was where the money was. It was where drillers decided to go ahead with further production. Gearhart looked to the north and Canada for an answer. The Canadian open hole market was then controlled by just a couple of companies. Gearhart met with several Canadian firms to set up a possible partnership. It was a struggle but Gearhart struck a deal in 1976 with a merge of one of Gearhart's former clients called Perfco and Wireline Electronics. This new partnership would be called Computalog Services and be headquartered in Calgary, Alberta. Perfco and GO were now in the digital wireline open hole business with a domination of the Canadian market ahead of them. For the next several years Computalog, under CEO Walter Dawson, operated basically as an independent company with promising success. It was combined with the cased hole services and the name was changed to Computalog Wireline. The Canadian employees were sent to Fort Worth for training on the new system.
After a couple of years in the planning, it was decided in 1980 to make the company go public with another name change to Computalog Gearhart, Ltd. In spite of unstable business situations due to continued debates in Ottawa over the National Energy Program, the company made financial strides with revenues of $10 million while Gearhart made $150 million. With the NEP decided by 1981, the Canadian service companies took a beating and many of them fell. Gearhart Computalog took adavantage of this and introduced their new MWD technology to Canada. Initially it was met with skepticism but eventually with acquisition of two drilling companies, Computalog became the leader and had great success.
Computalog was putting every new system that Gearhart could develop to good use. A new data transmital system called COMSTAR went into service allowing well data to be transmitted by way of satellite from the well to Computalog headquarters for analysis by engineers without having to be on site. By 1985 with acquisitions and new business, Computalog's revenues had almost reached $100 million annually.
In 1986, due to lower prices from non-OPEC producers and political problems in the Middle East, OPEC increased production rates causing a world glut and the resultant drop in prices. The oil service industry again fell on its collective face. Computalog's employees made concessions which proved successful to the company's survival. Gearhart did not fare so well. Computalog was making the most of the technology being supplied by Gearhart and helped shore the Texas parent. In spite of improving conditions in the US, Gearhart was still in financial straits. Gearhart divested itself of many of its holdings leaving it with only a 4.5% ownership of Computalog. It had now lost $337 million and was a prime candidate for buyout. Computalog had now become one of the companies interested. It was not to be and Computalog had now lost its main supply of technology. The Gearhart connection had ended its 12-year run.
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