By: RK Energy
The recent decline in the oil and gas industry has many companies experiencing hardship. Those that have survived are working to reduce costs by selling equipment or letting it sit idly; others are bypassing well testing, equipment servicing, repairs and site maintenance.
While scrimping on equipment maintenance is tempting, companies should seriously consider retaining and maintaining their costly operating equipment and field sites. Used equipment can now be found at bargain-basement prices today. Selling equipment in a downturn will likely result in a large capital loss for the business. The benefits will lie only with the buyer. Oil and gas companies should consider that once the industry turns around, the cost of equipment will also rise.
By holding onto equipment and investing in preventative maintenance instead, operators can gain enormous savings on future repairs. Investing now in maintenance will reduce down time and extend the life of the equipment. It will also help identify potential site risks and reduce overall production costs.
If companies continue to market effectively, it could also be an opportunity to win some business from competitors who are downsizing. Rather than dismantling and selling equipment or slashing the maintenance budget, maintaining existing equipment can put companies in a position to gain market share when the industry picks up because they’ll be able to ramp up production more quickly.
Despite the significant slowdown, there is still plenty of oil to drill. When the industry is on the upswing, competitors who downsized will be forced to spend extra time and capital expense before getting back to work as they will have to replace their equipment and perform site maintenance. Those who sustained their equipment and sites will be able to get to work right away.
If you are looking for someone to maintain your oil field equipment and perform on-site maintenance, RK Energy would be happy to discuss our services with you. Contact RK Energy at email@example.com for more information.