D & H Petroleum & Environmental Services

PEI's 2007 President relies Texas tradition of Smart Growth.

When we think of cowboys, we think of rugged individuals who are determined, dependable, dauntless, quick thinking and fast acting. Cowboys are handy and more than a match for the challenges that come their way. Cowboys face challenges head on; there is never any uncertainty about where they stand. We think of the men who roamed the Wild West in its early days: Kit Carson, Bill Cody, Wyatt Earp, Broncho Bill, The Cisco Kid...determined, dependable, dauntless, quick thinking and fast acting individuals.

Calvin Bishop, used to handling thorny issues, removes porcupine quill from a head of cattle at his ranch outside of El Paso.

These same characteristics are evident in this year's PEI President, Calvin Bishop, a self-described wanna-be cowboy. As president of D & H Petroleum & Environmental Services, headquarter-ed in El Paso, Texas, Bishop has grown his company from a single location operating out of a mobile home on a quarter-acre lawn, to a diversified, successful company doing business at seven locations in two countries. For fun, Bishop also operates a 1,000 acre ranch on which 80 head of cattle and several horses graze!

Determined to Do Whatever It Takes
Calvin Bishop moved to El Paso, Texas, after his stepfather, formerly a maintenance worker for Magnolia Oil (later to be Mobil Oil), was injured on the job. Workers' Compensation did not exist in those days, and Curtis Daniell was under pressure to find the means to earn a living to support his family, which included nine-year-old Calvin. Bishop's mother and stepfather opened Daniell's Pump Service, building gas stations for various major oil companies.

In 1968, Bishop's uncle, Larry Hefner, joined the company, incorporating it as D & H Pump Service. Hefner's departure from the company in 1972 paved the way for Bishop, after just one year in college, to join the company in 1974. At the time, there were four employees: an office person, service technician and a two-man construction crew. Bishop, at the age of 19, began his career in the industry as a construction supervisor. By 1975, with his stepfather's health failing, Bishop's parents retired, leaving the area and the business in Bishop's hands.

Calvin Bishop demonstrated how determined he was when, in 1976, at just 21 years of age, he purchased the company from his stepfather and mother. “At the time, the construction of convenience stores was just beginning to escalate. I was young and aggressive. I liked people. And my stepfather was looking for an exit strategy.”

COMPANY SNAPSHOT President:Calvin Bishop Year Founded: 1968 Year Joined PEI: 1978 Headquarters: El Paso, Texas Employees: 120 2006 Sales: $25 million Web Site: www.dhpump.com

Bishop, who at one time wanted to study law, decided that he liked the construction industry better. Determined to finish what he started, he continued studying business, attending school at night. “Too often,” he chuckles now, “an out-of-town construction project meant that I couldn't attend class. My grades were unusual ... A, A, A, F, A, A, A, F. You get the idea.” After 16 years of night school, Bishop finally got his degree.

Dependable Employees Put Customers First
Loyalty is not just a word that is tossed around lightly at D & H Petroleum & Environmental Services. Bishop boasts that many of D & H's 120 employees have been with the company for almost 30 years. “We are family-oriented. We do pot-luck barbeques for Friday lunches. We celebrate important events such as weddings and support each other during the more trying times like illnesses or the loss of loved ones. We are there for each other, which means a lot.”

D & H promotes itself as a customer-driven company. “When we do it right and provide solutions, we do it as a team.”

Dependability is an important characteristic of every D & H employee. The company screens prospective hires in an effort to recruit those who possess a good work ethic. “To fit in and succeed,” says Bishop, “an employee must have the desire to care for customers. Business is 24/7, and many employees are on call. Our work ethic requires that even if the call comes in on a weekend or a holiday, we must put the customer first.”

As an employee-owned company, D & H employees are definitely a cut above average. As owners, they collectively own 40 percent of the company and will, in three to five years, own 80 percent. The Employee Stock Ownership Plan, or ESOP, is a major benefit to employees, but requires accountability to think and act like the owners they are.

Education is of paramount importance at D & H. An in-house training center provides skill training on new processes, products, licensing and other job-related duties. D & H offers assistance to employees who want to further their education at a college or technical school and, depending on the final grade, from 60 to 100 percent of the cost of the course is reimbursed.

PEI President Calvin Bishop purchased his company at the age of 21 and grew it to seven locations in two countries.

Dauntless Pursuit of Success
We all know that the day-in and day-out stamina required for success is not for the faint of heart. In order to succeed, an entrepreneur must have a vision and a willingness to adhere to that vision.

D & H did not employ its first salesperson until 1976, 12 years after the company was established, and two years after Bishop joined the company. Success in those early years was the result of construction work at convenience stores and trucking terminals. All new hires were service people.

Today the company's performance continues to be driven by sales, service and construction work; 60 percent in the retail market; 30 percent in commercial. D & H offers a broad spectrum of services to the petroleum marketing industry. Environmental services include site assessments, corrective action plans and integrity testing. An automotive department offers the sale and service of car wash equipment.

The combination of 120 well-trained, experienced employees and a mix of products that fit the niche D & H has targeted—a one-stop solution for customers—continues to stimulate growth.

Quick Thinking and Resourceful
D & H Petroleum & Environmental Services has built its success on the relationships that it enjoys. “The more effort we put into a relationship,” Bishop says, “the better that relationship will be.” Over the years, the company has paid attention to customers' needs, offering products and services they require to maintain and grow their businesses. Bishop says, “What I think makes us a little unique is that we really concentrate on being a full-line company. We've made a marketing decision to offer as many services as economically possible. We are not necessarily looking for a lot of additional customers. We're looking to sell more to those existing customers.” With 2006 sales of $25 million, it's obvious that D & H Petroleum & Environmental Services is succeeding in meeting that objective.

“Service as a product is the most challenging thing for companies in our industry to deliver,” Bishop says, “but when service is done right and we are able to quickly and efficiently respond to our customers, we succeed.” D & H's emphasis on meeting its customers' needs has helped create a loyal base that will continue to support future growth.

Fast Acting to Take Advantage of Opportunities
When Bishop purchased his company three decades ago, its operations were housed in a once burned down and then remodeled mobile home situated on a quarter acre of land. Today, in addition to its El Paso headquarters, D & H operates branches in Midland/Odessa and Amarillo, Texas; Albuquerque, Gallup and Farmington, New Mexico; and Juarez, Mexico. Bishop relies on gut instinct and his ability to gather critical information regarding a location's potential. He also relies on D & H employees who share his commitment and work ethic.

D & H Licensed Installer Rudy Martinez (blue shirt) supervises a tank entry for repair of an underground storage tank.

D & H has been doing business in Mexico for 30 years, and Bishop notes how the marketplace there has changed. “For many years, there was just one pump company in Mexico, and it dominated the market.” The landscape has changed and is now home to some 20 pump companies, many of them PEI members. “It's much more difficult to compete with those companies. As PEI members, they are knowledgeable professionals.” At one time, D & H sold product from its store in El Paso, located five minutes from the border, and exported it to Mexico. Today, it's sold from a branch in Juarez Mexico, where three employees take care of customers.”

According to Bishop, requirements governing tanks, piping and monitoring systems are stricter in Mexico than in most areas of the United States. An April 1992 explosion in Analco, Guadalajara, killed 206 people, injured 500, and left 15,000 homeless, precipitating legislation that mandated double-walled piping and tanks.

As to future branches, Bishop says they are a definite possibility. “We are always looking for a geographic fit in the market,” he explains, and he is not averse to acquiring another company, “provided it's a good fit.”

While all facets of D & H's business enjoyed growth in 2006, the largest future growth is likely to come from the environmental services and car wash/automotive areas. Ninety-five percent of the company's environmental work is done out of El Paso. Eventually, environmental services personnel may be hired to staff each D & H branch. “There will continue to be a lot of emphasis on environmental issues which impact all of our customers,” notes Bishop, “and I see a lot of opportunity for growth.”

Equipment Operators Hector Carrera (front) and Joe Vasquez maneuver a tank in preparation for inspection.

In an environment peopled by what Bishop refers to as good competitors, “D & H has a history of being very competitive. We stand behind our products and will be there to support our customers' issues in the long-term. Because of our track record and the promise of future reliability, we can command a better price for our work. Longevity in this industry is crucial.”

Bishop's Vision for PEI
Calvin Bishop is bringing his experiences—cowboy and entrepreneur—to PEI as the association's 57th President. He describes himself as a consensus builder and will take advantage of the diversity of member companies as he furthers PEI's mission of being the leading authority and source of information for the industry. “A diverse association brings together the wealth of many different backgrounds and experiences.”

He remembers what it was like as an inexperienced 19-year-old manager of a construction crew, and he expresses gratitude for the opportunities he had to “get his boots dirty” and work alongside the industry's best. Bishop never forgot those opportunities for learning from and networking with other PEI members.

The lesson still remains. Through his membership in PEI, Bishop says he has a greater understanding of developments in other parts of the country and, more recently, in other parts of the world. He continues to find tremendous value in the networking opportunities available to PEI members, and wants to heighten the benefit of this value of PEI membership.

As he begins his year as leader of the Petroleum Equipment Institute, Bishop points to two critical issues now facing the industry: alternative fuel sources and the Energy Policy Act. “As alternative fuel sources enter our market, there will be new technologies and methods. PEI will be at the forefront as a clearinghouse for information.” He also notes that portions of the new Energy Policy Act that affect PEI members and how they are enacted into state law will influence business a great deal this year, and adds, “PEI will be here to help.”

Calvin Bishop will keep PEI looking forward as the association serves the needs of its members. After all, Calvin Bishop, whether wearing the hat of a cowboy rancher or the hat of a company president, knows that PEI as an organization will not do differently than he has done for the last three decades. In his role as PEI President, he will be dauntless, determined, dependable and ready to move ahead.

It is these characteristics of the cowboy that are the same characteristics of the Petroleum Equipment Institute, as we look forward to a year of growth in a changing and challenging industry.

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The PEI Journal • First Quarter 2007 • Volume 1, No. 1 • Contents are Copyright © Data Key Communications, Inc.
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