FOCUS: Permian Focus

31-Oct-2018

By: Eric Danos

Our 2019 Permian strategy is called Permian Expansion. This name change from Focus to Expansion is subtle but important. It signifies a desire to build on the foundation of three years of strategic focus in this region. A good, strong base has been built. Now we need to grow from it. In a nutshell, the strategy going into 2019 is about the expansion of Danos’ presence into new geographies, customers and service offerings. It will also ensure we have the facilities and people to support the growth.

At first it might not make sense to talk about Permian Expansion strategy within new geographies when the Permian has been our target geography. Keep in mind though that the Permian is a producing area that stretches across south and west Texas into eastern New Mexico and has several component basins within it. Today one of the most important of those component basins within the Permian is the Delaware basin.

 
We have plans to set up an office and have people and equipment ready in the Delaware basin to help us better support this part of the Permian. This is what we mean when we talk about new geographies within the Permian Expansion strategy.

During our strategy development process for 2019, we reviewed and discussed a lot of information to understand the market forces that influence how we should respond. This chart, in particular, reminds us why the Permian is so important to Danos as well as the rest of the oil and gas industry.

 
It shows an increase in production for 2019 and where that production will come from. Far and away, the Permian will lead oil growth, followed by the Gulf of Mexico. Danos is positioned well in both the Permian and Gulf of Mexico to play a significant role in the upcoming change.

Our executive team feels strongly that we are near the tipping point for a significant step forward in the Permian. We have a solid base and several very significant opportunities in the Danos pipeline. We have been challenging our teams to study what we will need to support these opportunities and then build organizational capabilities in advance of starting them. Sometimes we have to build capability before we have work when we can see it coming. This is a challenge for us because we are more comfortable responding and catching up after we win. But being ready in advance of opportunities because we are smart about what we see coming is part of our drive toward operational excellence. Stay tuned for what we hope will be more tremendous opportunities coming with customers in the Permian!

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. Read more...



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