By now, all of you are aware that the Permian is one of our strategic focus areas for 2018. Many of you had a chance to participate in this Wednesday’s
lunch and learn led by Jeremy Adkins. If you joined, what you surely heard was that the Permian is hot and Danos is right in the middle of the action.
Two facts worth noting that Jeremy shared are Permian oil production is expected to increase by 50% from 2017 and 2020, and the Permian basin is expected to account for 75% of the net increase in U.S. oil production in that same period.
We want to be right in the middle of that, and we are.
Our production services group has done an excellent job over the past six years establishing a Danos presence, building credibility, gaining market share, and providing outstanding service. The opportunities for Danos are ripe and growing as a result.
We have recently established ourselves with the top three operators in the region and are excited about what opportunities lie ahead for us there. We reached a milestone of 3 years, 1 million man-hours, and 8 million miles driven incident-free with Oxy, our most significant customer. And, we are gaining momentum on achieving our vision of offering multiple lines of business.
Up to the beginning of 2018, we had very little going on outside of our production services offering in this area. In the next month or so, we should be approaching 150 people on our project services side involving all lines there, including quite a bit of fabrication being done in Amelia and getting shipped to project locations in the Permian.
We have a lot to be excited about as a company as we look West to the Permian. We are working hard to remain focused and intentional about our efforts there. Our team is doing an outstanding job, and our customers are asking for more of our services.