{"id":39295,"date":"2022-07-16T22:01:57","date_gmt":"2022-07-17T04:01:57","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/two-new-faces-in-new-mexico-oil-and-gas\/"},"modified":"2022-07-17T04:01:57","modified_gmt":"2022-07-17T04:01:57","slug":"two-new-faces-in-new-mexico-oil-and-gas","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/two-new-faces-in-new-mexico-oil-and-gas\/","title":{"rendered":"Two new faces in New Mexico oil and gas"},"content":{"rendered":"

\"Sean
Sean Dugan, left, and Ryan Merrion at the San Juan College School of Energy in Farmington on June 27. (Whitney Howle\/Special to the Durango Herald)<\/span>Whitney Howle\/Special to the Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>\n

Sean Dugan wanted to be the next great filmmaker. Ryan Merrion wanted to invent a vacuum cleaner to clean rooms faster than the speed of light.<\/p>\n

Neither got their wish.<\/p>\n

Today, Dugan, 38, runs Dugan Production Corp., and Merrion, 34, runs Merrion Oil and Gas Corp., two energy companies that have served San Juan County and beyond for more than 60 years.<\/p>\n

\"Dugan
Dugan Production Corp. and Merrion Oil & Gas Corp. signage at the San Juan College School of Energy. (Whitney Howle\/Special to the Durango Herald)<\/span>Whitney Howle\/Special to the Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>
Merrion: \u2018Big shoes to fill\u2019<\/div>\n

Merrion worked as a summer field hand for Merrion Oil and Gas when he was in high school. The work sparked his interest in the oil and gas industry, and he went on to get his bachelor\u2019s degree in petroleum engineering from Colorado School of Mines. After graduating, he joined the company, focusing on operations of the company\u2019s oil and gas assets.<\/p>\n

\u201cAs I started my career, the notion of taking over the company became more apparent,\u201d Merrion said. \u201cAbout a year ago, I transitioned into the role of vice president of Merrion Oil and Gas. As part of the new role, my dad (T. Greg Merrion) involved me in the larger company decisions, which exposed me to administrative decisions, investment decisions and partnership decisions.\u201d<\/p>\n

In March 2021, T. Greg Merrion, who had taken over the family business in 1992, said he would retire at 2:22 p.m. Feb. 22 and turn the company over to his son.<\/p>\n

\u201cTo be honest, my first thoughts were a bit overwhelming,\u201d the younger Merrion said. \u201cI tried not to think about it too much and focus on tasks at hand. I knew I had a huge responsibility and huge shoes to fill, so I tried to get as much experience as I could while I was still training. My dad has been my mentor since as long as I can remember, and I\u2019ve had the luxury of having \u2018on-the-job training\u2019 both in and out of the office.\u201d<\/p>\n

While his grandfather was an icon in the community, Merrion said he only knew J. Greg Merrion as \u201cPapa.\u201d<\/p>\n

\u201cMy sister and I would come to the office and race each other to see who would get to hug Papa first,\u201d he said.<\/p>\n

Merrion\u2019s elders left an inspiring legacy of community involvement.<\/p>\n

\u201cMy dad and grandpa were involved in the community and were impactful. I hope I can continue that legacy into the next generation.\u201d<\/p>\n

\u201cMy family, co-workers and friends have all supported me through the transition,\u201d Merrion said. My family\u2019s support has definitely given me the confidence to lead the company through the next generation and having the support of the staff at Merrion has been critical to a smooth transition. Having my dad remain on board as senior adviser and having a well-experienced staff to support along the way has been crucial as I get my feet under me.\u201d<\/p>\n

Merrion Oil and Gas were fortunate to not having to layoff people during the pandemic, Merrion said.<\/p>\n

\u201cMerrion Oil and Gas operates with a \u2018lean and mean\u2019 staff as a way to handle the volatility of the market prices,\u201d he said. \u201cAlternatively, during higher prices, Merrion contracts work to offset the additional workload of excess projects. It\u2019s been a good strategy throughout the years.\u201d<\/p>\n

The future of oil and gas in the San Juan Basin looks \u201cvery bright,\u201d Merrion said. \u201cThe recent increase in prices has spurred opportunity and projects that otherwise would be foregone. We have some fun projects we\u2019re excited to work on in the upcoming years.\u201d<\/p>\n

\"A
A mineral and Native American art collection at the offices of Dugan Production Corp. When Tom Dugan died in 2017, Sean and his sister, Megan, became owners of the family business. (Whitney Howle\/Special to the Durango Herald)<\/span>Whitney Howle\/Special to the Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>
Dugan: \u2018Everything changed\u2019<\/div>\n

While Sean Dugan, who graduated from Full Sail University, thought he would take over the family business, he didn\u2019t think it would happen in his early 30s.<\/p>\n

\u201cMost of our family conversations centered around the business,\u201d Dugan said. \u201cOur family vacations were based around industry conventions or policy. The trips to the field, the weekends spent in the conference room doing my homework while my family reviewed paperwork were a given. I attended conferences with my grandfather (Tom Dugan) and, as a kid, having folks ask when I would be taking over the business.\u201d<\/p>\n

The reality of taking over Dugan Production hit Sean when his father, Sherman, became deathly ill.<\/p>\n

When Tom Dugan passed away in 2017, Sean and his sister, Megan, became owners of Dugan Production.<\/p>\n

\u201cGrieving the loss of your father while at the same time realizing that our family business would be skipping the second generation and going straight to the third was difficult,\u201d Dugan said. \u201cEverything changed.\u201d<\/p>\n

Sean took over the leadership of the company, facing the daunting job of running a company that has a history of strong leadership and loyal employees.<\/p>\n

\u201cI thought it was way too soon,\u201d Dugan said. \u201cIt wasn\u2019t supposed to be like this. I was supposed to have more time to prepare.\u201d<\/p>\n

He feared being the generation \u201cthat comes in and messes up a good thing.\u201d<\/p>\n

\"Artifacts
Artifacts from Sherman Dugan\u2019s collection are on display at the offices of Dugan Production Corp. The marine mollusks \u2013 ammonoids \u2013 vanished after the Cretaceous-Paleogene extinction event 65 million years ago. (Whitney Howle\/Special to the Durango Herald)<\/span>Whitney Howle\/Special to the Durango Herald<\/span><\/figcaption><\/figure>\n
\"Artifacts
Artifacts from Sherman Dugan\u2019s collection are on display at the offices of Dugan Production Corp. Amethyst, above, is a variety of quartz. Iron in the crystal determines the color of the amethyst, ranging from lilac to deep purple. (Whitney Howle\/Special to the Durango Herald)<\/span>Whitney Howle\/Special to the Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>

\u201cHow am I going to live up to the enormous shadow that our founder, Tom Dugan, has cast?\u201d he said. \u201cWhat if I fail? What happens to all the employees and their families? What will my children think of me? Can I do this? Should I do this?\u201d<\/p>\n

\u201cWhen you have an organization that is so firmly rooted in its history and ways for 63-plus years, change becomes a challenge. Not changing the fundamentals and the foundations that got us to where we are, but evolving into what comes next,\u201d he added.<\/p>\n

First the pandemic, then the Russian embargo brought new challenges to Dugan Production and Merrion Oil and Gas.<\/p>\n

\u201cCompanies who were heavily leveraged heading into the pandemic were greatly affected,\u201d said Dugan. \u201cWe saw bankruptcies and layoffs across the country. With the price rebound, it\u2019s been beneficial to our company because we can proceed with some of the projects we\u2019ve been holding off on for the past several years.\u201d<\/p>\n

\u201cSupply chain and equipment prices have doubled or even tripled in some areas,\u201d he added. \u201cOn one hand, we\u2019re doing great, but it\u2019s costing a lot more to do business. Companies have come out of the pandemic licking their wounds. They are paying their debts down and strategizing for a very volatile future.\u201d<\/p>\n

Hard times brought hard lessons.<\/p>\n

\u201cThe global pandemic, the price of crude oil dropping into the negative for the first time in history taught me more than I\u2019d ever want to know about making the hard decisions that this position requires,\u201d he said.<\/p>\n

In the end, his trial by fire gave him the discipline and confidence he needed.<\/p>\n

\u201cIn hindsight, I\u2019m grateful I took over at a time of a downturn,\u201d he said. \u201cIt forced me to deep-dive into our operations and our balance sheet. You really get a feel for a company\u2019s strengths and weaknesses when you must count every dollar that goes out and rely on every dollar that comes in.\u201d<\/p>\n

While continuing the build on the reputation and the success of Merrion Oil and Gas and Dugan Production is exciting and challenging to the next generation of leadership, the opportunities the future offers is equally exciting and challenging Merrion and Dugan said.<\/p>\n

\u201cThere will be challenges as new industry comes into play,\u201d Merrion said. \u201cHowever, as technology advances, I have no doubt there will be new creative and innovative ways to continue producing oil and gas in a safe and responsible fashion. Another noteworthy topic is how the integration of renewables will impact the fossil fuel industry. I see energy generation from natural gas complementing renewables for decades to come. Natural gas is a clean, reliable, and good source of energy that we\u2019re lucky to enjoy here in the United States.\u201d<\/p>\n

The opportunities in the San Juan Basin are plentiful, not only meeting our own country\u2019s need for energy, but also the rest of the developing world as well, Dugan said. \u201cWhether it be exporting liquefied natural gas to foreign nations, using natural gas to create hydrogen fuels or bridging the gap between fossil fuels and renewables, the San Juan Basin and the Four Corners will have an important role in these massive undertakings,\u201d Dugan added.<\/p>\n

\"The
The mission, core values and vision of Merrion Oil and Gas Corp. are displayed in the office lobby. Third-generation family businesses are truly a rarity in this day and age,\u201d said T. Greg Merrion. (Whitney Howle\/Special to the Herald)<\/span>Whitney Howle\/Special to the Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>
\u2018In good hands\u2019<\/div>\n

Merrion\u2019s and Dugan\u2019s work has not gone unnoticed.<\/p>\n

\u201cI\u2019ve known Ryan his whole life,\u201d said George Sharpe, the investment manager at Merrion Oil and Gas. \u201cWhile Ryan likes to have fun, he is a serious and conscientious engineer and businessman. He shares T. Greg\u2019s low-key, inclusive management style. Everybody likes him and everybody absolutely loves working for him. I have no doubt he will do an outstanding job leading the company through the next generation.\u201d<\/p>\n

\u201cThird-generation family businesses are truly a rarity in this day and age,\u201d said T. Greg Merrion, \u201cand our family feels fortunate and blessed that Ryan has the aptitude and the interest to run Merrion Oil and Gas. Like me, he worked outside the company after he first graduated from college, which provided some good training, as well as a different perspective of how other companies do business. He is very smart and capable, and I have no doubt he will do a wonderful job guiding Merrion Oil and Gas into the future. The entire Merrion clan is very proud of him.\u201d<\/p>\n

At Dugan Production, Dugan has proven his value and his leadership to be great assets, said John Alexander, the vice president of Dugan Production.<\/p>\n

\u201cSean did not attempt to redesign or remake the company into anything other than what it was under Tom Dugan\u2019s direction, said Alexander. \u201cThat doesn\u2019t mean that nothing changed. In fact, a lot of things changed to bring the company into a rapidly changing world of oil and gas exploration and production. Sean is making a diligent effort to keep the company doing what it does best \u201cto legally, morally and ethically produce oil and gas.\u201d To do this is quite the challenge today due to the policies of both state and federal governments, but Tom Dugan would be proud.\u201d<\/p>\n

John Dean, a longtime friend of the Dugan family, said, \u201cI believe Dugan Production is in good hands with Sean. He is intelligent, loyal, honest, hardworking, compassionate and a great listener, and he is a real people person. Dugan Production has lots of great people for employees, and they and the business will thrive under Sean\u2019s leadership now and into the future.\u201d<\/p>\n

\"The
The lobby art collection at Merrion Oil and Gas Corp. (Whitney Howle\/Special to the Durango Herald)<\/span>Whitney Howle\/Special to the Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>","protected":false},"excerpt":{"rendered":"

Merrion and Sean Dugan take over family businesses during disruptions of pandemic and war<\/p>\n","protected":false},"author":1,"featured_media":39296,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[221,28,138,445],"naviga_topic":[],"class_list":["post-39295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-gas-and-oil","tag-headlines","tag-new-mexico","tag-newsletter-lead"],"acf":[],"author_name":"dh_admin","_links":{"self":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/39295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/comments?post=39295"}],"version-history":[{"count":0,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/39295\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media\/39296"}],"wp:attachment":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media?parent=39295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/categories?post=39295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/tags?post=39295"},{"taxonomy":"naviga_topic","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/naviga_topic?post=39295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}