Excellence Logging, along with every operator or service company in the upstream oil and gas sector, is being hit by a sharp drop in the demand for oil and gas driven by the economic impact of the Coronavirus pandemic, coupled with a precipitous drop in the market price of oil and gas caused by an oversupply of crude oil and gas to this depressed demand market. This combination of factors represents an unprecedented challenge to the global oil and gas industry, and particularly to a recently evolving and growing company like Excellence Logging. For us, the impact of Coronavirus and related effects has varied effects by region and to some extent by country but from experience we can foresee that the overall situation will worsen in the coming days and weeks. As in previous downturns the same questions of how long the downturn will last and how rapid the rebound will take are unknown and will remain unknown for some weeks, months or even quarters.
Fortunately, within Excellence Logging’s Corporate and Regional management teams we have many that have experienced previous industry downturns and the strategy and actions that have proven effective before are still valid when adapted to the current situation. The strategy is to expect that the situation will deteriorate before it gets better and to focus on controlling what we can control. We cannot control the daily price of oil and gas, nor the global supply nor the daily demand of these commodities, but we will control our organization, our teams, and our delivery of quality service and value to our customers.
The actions that go along with this strategy are also proven and known. The first action is to assume that the situation will also worsen faster than most anticipate and accept that operators will need us to be proactive and stay ahead of a rapidly changing situation. Excellence Logging is maintaining its’ long term strategic goals in developing a leadership position in service and technology as well as its management succession plan.
John Lechner who joined Excellence Logging in 2019 as Chief Operating Officer is appointed Chief Executive Officer. Bruno Burban will stay in the group as President Founder & Chief Technology Director. This position enable Bruno to continue to provide his considerable knowledge and experience to aide Exlog in maintaining our technical culture and capability in the short term, while being available as an acknowledged technical expert with broad industry connections to support Exlog’s growth through advanced services when the upturn occurs.
On behalf of Excellence Logging, John sincerely hopes that all employees’, clients’ and suppliers’ families and teams stay safe and healthy. We urge you to follow the direction of your local government departments and for Exlog employees your local QHSE department’s advice to protect all of you from Coronavirus exposure. Though the situation is certainly very serious and the news disturbing, conscientiously following local government and EXLOG QHSE department directives have proven that avoiding exposure to the virus is possible and prevents the actual risk of infection. When in doubt always chose the more cautious path and stay safe. Progress in getting through the peak of infection has been reported in China, and a definite slowing of the infection rate is also being reported in other countries. The pace of getting through the pandemic will vary from country to country, but all will eventually get through, and following directives aimed at protecting you and yours will be the best way to stay free of the Coronavirus through this period.
Our EXLOG Situation Response Team (SRT) has been communicating procedures, best practices and governmental resources to the organization during the pandemic and will continue to do so, and will include suggestions and resources on how to deal with the impact of the Coronavirus pandemic and associated social isolation measures on mental wellbeing. Accepting and positively addressing the stress caused by these are as important as physical health to the long-term wellbeing of our employees and their families, and I encourage you to incorporate these suggestions into your response to the current crisis.