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

A Message from Eric Danos

30-Oct-2015

By: Eric Danos

 

Phew…we have a lot going on!  One of them is developing budgets and strategies for 2016 at a time that is very different than a year ago.  In this same month last year WTI prices averaged $80.93.  Today they are almost 50% lower.  But what really tells the story for me about the change in prices is the amount of customer projects that have been cancelled or delayed.  Over $200 billion in investments have been deferred.  This is an astonishing reduction, the likes of which we have not seen since the infamous 1980s. 

On the other end of the spectrum, midstream and downstream markets remain strong.  Louisiana is in the midst of a petrochemical renaissance due to low natural gas prices.  If you’ve driven along the river between Baton Rouge and New Orleans lately chances are that you’ve seen cranes dotting the skyline at petrochemical complexes.  What this means is that in spite of the upstream oil and gas market having fewer opportunities today, we are still in competition for local resources. 

But no matter what’s happening outside Danos, we will keep focus on principles that don’t change with the markets or with time.  For us that’s our purpose and values.  Difficult times often require trade-offs.  I am strongly confident we will not trade away anything to do with our purpose or values.  You are committed to them.  I believe it’s this strong commitment, in good times and bad, that makes Danos special.  

The leadership team met recently to study our progress toward the Vision and to lay out 2016 strategic priorities based on our progress toward the vision.  This team is well aligned as to what we need to do to win.   Firstly, we recognized the need to be focused on what internal projects we take on.  We need to do a better job of zeroing in on a small number of things that will really make an impact and do these things well.  The leadership team established the following focus areas for 2016:

  • Develop field leadership

  • Enhance project management capabilities

  • Develop bidding & estimating processes

  • Win large projects that involve all of our lines of business

  • Provide a comprehensive materials management solution to the industry. 

These should sound familiar because we have already been working on aspects of them as part of this year’s strategy.  In continuing to work them we are reconfirming that these are the right strategies and we need to continue them to completion. 

As we navigate through this downturn our customers will demand more rigor and discipline around work execution.  We have been laying the groundwork for this for a couple of years now and will continue to build toward an organization that sets the standard for operational excellence every day.  We have much work to do yet to achieve our Vision, but I am happy to be on this journey with you.   

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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