3 Ways Rented Oilfield Equipment Can Make You A Stronger Competitor
In the oilfield industry, it is all about competition. When the bidding war starts for a particular job, you want to ensure that you can provide the correct bid, the right amount of manpower, and the best equipment necessary. Of course, purchasing expensive oilfield equipment for various jobs is not always an option. Luckily, renting equipment could make you a stronger competitor for a few reasons.
Lowering Capital Expenditures
Many companies have come to realize the benefits they can reap by renting oilfield equipment rather than buying. In fact, the oilfield equipment rental market is projected to rise from the estimated $26,818 million it was at as of 2014 to approximately $53,706 million by 2019.
Part of the reason many companies choose to rent oilfield equipment is thanks to their reduction in capital expenditures. Capital expenditure, which is also commonly referred to as CapEx, is money that a company spends in order to improve their physical assets, which includes equipment used to perform a certain job.
Renting is often cheaper than buying, meaning companies can reduce the amount of money they spend in order to purchase upgrades for their equipment or equipment with better technologies. Therefore, by reducing capital expenditure, a company is better equipped to take on a job without the risk of losing money. Instead, the company is more likely to make a decent profit.
Lowering Maintenance Costs
In order to be a strong competitor, your company must know how to save money in order to make money. However, one area that you should never cut corners on is maintenance. Proper maintenance of oilfield equipment is a necessity. Without proper maintenance, you run the risk of serious injury and delays.
Should a piece of equipment malfunction, it could injure one of your workers, therefore decreasing your manpower. Furthermore, a malfunctioned piece of equipment could force you into having to halt your production on the job. Fortunately, oilfield rental equipment is the solution to the problem.
Rental companies provide maintenance services for all of their equipment, either free of charge or at a lower rate compared to the cost of maintenance on equipment you own. Therefore, you are able to decrease the amount of money you spend having to fix or replace parts. Should a piece of equipment break, you would have to spend an outrageous amount to replace it. If you are renting, the rental company may offer you either a loaner or a new piece of equipment to use.
Lowering the Risk of Old Technology
Old, worn out, and otherwise obsolete equipment can damage your reputation in the oilfield industry. If another company with better, more technologically advanced equipment comes along and places a bid on the job, they are more likely to get it. Therefore, you need to ensure you have the best equipment possible.
Renting your equipment ensures that it is never obsolete. When the equipment proves irrelevant to the oilfield industry, you can go back to the company and turnover the equipment in place of something newer and far better than what you rented before. For example, a rental company may acquire a piece of equipment with far better drilling technologies than the equipment you are currently using. Therefore, it makes sense to rent the more improved piece of equipment.
If you are interested in learning more about saving money, lowering your CapEx, and gaining access to the newest technologies, contact an oilfield equipment rental company near you. A professional can assist you in finding and renting the equipment you need to increase your competitiveness in the oilfield industry. You will quickly discover why so many other industry leaders are already making use of oilfield rentals.