By: RK Energy

The process of oil and gas production creates millions of gallons of hazardous brine, also known as salt water, every day. This salt water contains various chemicals for extracting impurities out of the oil and gas and has an extremely high salt content, making it dangerous. As the purified oil and gas are brought to the surface during production, salt water is left behind and must be safely discarded.

Companies will often recycle the salt water first by injecting it back into the cistern to continue gathering any remaining oil or gas. Once finished, the salt water must be carefully discarded at a nearby salt water well disposal site or trucked to a well, which can be costly.

A salt water disposal well is a deep disposal site created specifically for the salt water byproduct of oil and gas production. The pipe leading to the well, which can be over a mile in depth, is encased in steel and surrounded by a protective cement layer to ensure containment. These extra protections are in place to ensure that the salt water doesn’t seep out and pollute the land, groundwater or other nearby water resources. Salt water disposal wells can be continually used for up to 15 years and are sealed off upon reaching capacity.

Prior to the 1970s, the oil and gas salt water byproduct was disposed of in whatever manner was cheapest. This meant that it was often released directly on the ground, leaving land riddled with salt scars as well as contaminating both surface water and groundwater.

Regulations for the disposal of salt water vary by state, but the Environmental Protection Agency (EPA) now monitors the disposal of this substance closely. The Safe Water Drinking Act requires the EPA to maintain minimal federal requirements for the practice of salt water disposal and regularly report on them to ensure that surrounding land and water remains safe.

RK Energy specializes in custom solutions and field support services that are expertly engineered for the unique needs of the oil and gas industry. We build custom salt water disposal skids, like the one pictured, to fit each of our client’s specific needs. At RK Energy, we use advanced engineering, preconstruction services and CAD modeling for precision planning that streamlines the design and install of field site facilities and equipment.

By: RK Energy

In the summer of 2014, crude commodity prices were more than $100 a barrel. Since then, prices have dropped to $45 and stayed low for the last few years. While dozens of energy companies had to file for bankruptcy during the down turn, quite a few have made it through despite the low prices. What is the secret to their sustainability? The Denver Business Journal credits their survival to technology advancements, paying debt, cutting expenses and earning favorable margins at a lower cost per barrel.

Technology advancements significantly cut costs.
Technology advancements have cut drilling costs in half. Strategic companies are using the money saved on drilling to pay off debts and sell unneeded assets.

Private-equity investors are still keen on oil and gas.
Over $130 billion has been raised by investors, and due to the market’s high demand, they’re not going anywhere. They see the potential for big returns in the future.

New lending agreements negate the possibility of bankruptcy.
New lending agreements have fixed problems that popped up during the downturn. Companies can no longer receive cash advances before they reduce the value of their reserves or file for bankruptcy. Also, lists of assets used for collateral have expanded to include other property, company-owned bank accounts and underground reserves.

Through the adoption of advanced technologies and cutting expenses, many oil and gas companies in the Denver-Julesburg (D-J) Basin are expecting to pour over $2 billion into drilling in 2018,  boosting output by 83{daeb8d662f58e4975bc93960761d671bdf0aa2ad049ea8a375d2717d280ef80b}, according to a recent Denver Post article. Even at $50 a barrel, the future is looking bright for the oil and gas industry.

RK Energy specializes in upstream and midstream production equipment, along with custom manufactured and skidded equipment for the oil and gas industry. We use advanced engineering, preconstruction and CAD modeling to fabricate skidded equipment for easy installation and maintenance in the field.

By: RK Energy

Excessive costs associated with maintaining oil and gas sites are risky, the smart solution is to rent equipment instead of purchase it.

Due to limited resources, profits can drop drastically because of the substantial up-front cost that comes with buying new equipment. Rental equipment is a great alternative that can also greatly reduce industry barriers allowing for multiple projects to occur simultaneously. In addition, many oil field and construction equipment suppliers rent out specialized equipment for individual needs and often streamline the process by delivering and installing it on site as well.

There are several hidden costs to owning oil and gas equipment.

Besides the decrease in value that comes with years of use, owners are also responsible for equipment repair, maintenance, transportation and more. Renting reduces these concerns and often allows renters the option to buy the equipment down the line. Ongoing maintenance costs are typically included with a rental which avoids unexpected expenses if a piece of equipment suddenly needs service.

During a downturn, companies focus on increasing production to remain competitive and profitable.

With an increase in production comes more exploration, projects and equipment to do the job. Renting equipment allows a business to have multiple on-going projects without tying up too much cash in equipment.

Companies should look beyond rental rates when deciding on a piece of equipment or rental company.

It’s important to understand the rental company’s ability to service and obtain parts quickly which can affect long-term savings and peace of mind. Customers should consider operating costs, emissions generation, increased performance and maintenance requirements as well.

Government regulations can also increase costs when purchasing equipment. Renting equipment ensures that operations are in compliance with regulations rather than having to invest in new equipment when a regulation changes.

Renting can help operators test out the latest technologies and models, gain equipment knowledge, obtain access to specialized or temporary-use equipment, analyze equipment before buying and avoid high start-up costs and maintenance.

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 for more information.