4WARD: Permian Pursuit


By: David Poe

How important is customer-centric thinking going to be in 2018?

As one of our key strategic initiatives and someone that works in sales, I believe customer-centric focus may be the most important initiative. Good things are more likely to happen when Danos understands and is aligned with their customers. Surprisingly, achieving customer-centric focus might be as simple as a 1, 2 and 3 formula in 2018.

1. Customer Demand

A Morgan Stanley analyst recently wrote that “Demand for oil is growing at a surprisingly high rate.” The writer predicted if OPEC and other oil exporters manage production by leaving “1.8 million barrels off the market throughout next year”, we should see significantly more customer investment and increased demand for our services. The analyst predicted that U.S. shale drillers will have to grow production from about 5.9 million barrels a day to 7 million barrels a day requiring drillers to add 8 to 10 new rigs each month in 2018! New customers will be under pressure to produce oil and gas to meet projected demand. That also means our customers will need our help to meet increasing demand.

2. Be where the customer lives

The hottest customer activity right now is in the Delaware basin that runs from Southeastern New Mexico to West Texas as part of the larger Permian basin. Our 2nd largest customer in Texas has added three drilling rigs in the Eagle Ford in South Texas. Marcellus activity is increasing to meet future natural gas demand for an emerging petrochemical market. We are already increasing our ability to service these customers with our biggest footprint in the Permian. So it just makes sense that we plan to have the facilities, people and the commitment to be where the customer works and lives.

3. Make it easy to do Business

When our customers get busy, we need to do things their way to save them time and money. It shows we understand what is important to them, that we are nimble enough to adapt to how customers want to do business and perhaps most importantly, Danos becomes a better partner to execute our customer’s operational strategy. We will win more business if we make buying and working with Danos easy.

Customer-centric thinking is strategic and important. We have a commitment to adjust to the way our customers do business and have grown our physical presence to shale locations with the intent to provide all of our lines of business. All we have to do is align our customer’s objectives with our Danos objectives to make the whole process as easy as 1, 2, 3.

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