4WARD: Efficient Execution


By: Kevin Biringer

I was recently asked, “Is efficient execution really strategic? Isn’t that something good companies should always be working on?”

After some thought, my response is yes and yes.

While Danos has always been striving to find unique ways to reduce costs, eliminate unnecessary tasks and become more efficient in the way we operate, the price environment we’re currently working in has made it more important than ever. 

Strategically, this should push (oilfield service) OFS companies to manage their service offerings and relationship portfolios in a more focused way, allowing them to concentrate on higher margins, differentiated services, risk-and-reward sharing contractual arrangements, and long-term partnerships with both operators and equipment suppliers. Additionally, they should ensure back office and administrative functions are efficient, cost-effective, and state-of-the-art.


To balance cost challenges against the possible need for new reserves, a leaner and more efficient industry is required both in execution and operation. Companies will need to be prepared to deliver significant volumes of oil and gas at competitive returns, even if prices remain low and carbon externalities are priced more accurately. The industry will undergo a new technical revolution, with significantly higher levels of artificial intelligence and automation and remote operation and management.

--World Economic Forum--

Most in the industry agree that the current environment is forcing companies to think very differently about execution and be more open to change, including adoption of new technologies. Danos, on the services side, is responding to conditions that are being driven by our customers.

Hess has recently rolled out ‘Operations of the Future’ in the Gulf of Mexico. Hess stated, "The goal of OOTF in this lower-for-longer oil price environment is to maximize production and lower costs while keeping safety the priority. It will also establish a systematic approach to continuous improvement, empowering the workforce to cut waste and solve problems."

As customers continue to look for ways to improve efficiency, you may start to notice an increase in discussion about the topic at your location or job site. Below is a recent Chevron investor presentation:

Capital efficiency, operational excellence, continuous improvement; whatever you call it, there is a major industry focus on working smarter & more efficiently. That’s why for 2017, in order to continue providing a service our customer’s value, efficient execution is 1 of 4 strategic initiatives.

Kevin Biringer

Kevin Biringer is the General Manager for Shale Production Services. He joined Danos full-time in 2014 after a summer internship with Danos in 2013. Prior to joining Danos, Kevin was a project engineer for the ExxonMobil Development Company.  



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