2019 safety focushouma: july 22 and 29midland: dates tba

4WARD: Permian Pursuit

12-Apr-2017

By: Eric Danos

I recently attended an oil and gas investor conference. This conference was an opportunity for operators to provide insight into their business to their investors. One thing that was really clear through the presentations I attended is that the Permian Basin is receiving a lot of attention from all types of operators – big and small, new and old. Activity levels have increased significantly because this area has become a go-to region for investment. Our industry is leveraging technology and growing its knowledge to drive down the cost to produce wells in the Permian. This bodes well for continued development even if oil prices dip somewhat. Danos is well positioned to remain a part of the Permian growth story that is being watched from all over the world.

We have been in the Permian for over 5 years now. As you know last year we recommitted in a significant way because of our awareness of the amount of investment taking place in the Permian. Since our first days in the region, we have always had a good team on the ground. They have grown our business from initial startup to over 200 people. Just as importantly we developed a reputation for providing outstanding service in the key operational areas of our business. Our Permian team was recently strengthened when both Jeremy Adkins and Rene Vidrine moved to Midland to support our growth plans for that area. Our goal is to double the size of Danos’ business during the next three years in the Permian. Much of that growth is expected to come from our Automation and Construction lines of business. Today we have little work in either of those service lines; we mainly provide Production services.

To achieve this kind of growth we need to recognize that this is a different market and it needs to be approached differently. Even though we are fundamentally doing the same thing in that we are producing oil and gas, the Permian is in many ways very different than the Gulf of Mexico. We are adapting our processes to this market.

Progress can be seen in many areas. We have a new facility that can support Automation and Construction where before we weren’t set up to support these service lines. We are learning how to estimate and bid jobs for this market. We are looking into new ways to execute these land jobs that are much different than offshore. We have a new focus in the way we market Danos and engage potential customers. The sales and business development team is focused on expanding our customer base and cross-selling services to support the financial commitment we made to the Permian. These efforts appear to be paying off. We are on pace to triple the number of potential customers we’ve pre-qualified, and although we started with only one customer today are actively working with 8 customers.

I’m glad that our team has recognized this opportunity to operate in a different market and is willing and able to be adaptive to apply our collective energy to the Permian. Stay tuned for future updates.

Eric Danos

Eric Danos oversees the company’s finance, safety, human resources and land activities. A third-generation owner and member of the Danos Board of Directors, Eric began his career at Danos in 2004 as an operations manager for the international labor division. Eric has a B.S. in Marketing from Louisiana State University and an M.B.A. from Stanford Graduate School of Business.


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