As the owner and operator of an oilfield company or crew, you best bet is to reduce your costs as much as possible. The oilfield industry is an expensive industry all around. As a business owner, you could spend several thousand on just one piece of equipment needed for the job. Fortunately, there are many reasons why oilfield rental is your best option.
Reduce the Stress of Expenses
Purchasing expensive equipment is stressful for sure, but it is even more stressful when an expensive piece of equipment you own happens to break down. From drill subs to blast joints, power swivels, thread compounds, drill pipes, and more, each piece is costly. If a piece of equipment happens to break, you may be forced into halting your oil drilling process. Halting or delaying the process could anger clients, which could in turn result in a loss of finances.
It is not always feasible to replace or repair a piece of equipment. In truth, having to spend thousands on repairs or replacement could set your company back financially, which could in turn hurt your future success. Luckily, oilfield equipment rental companies allow you to gain access to the equipment you need at an affordable price when you need it most.
Although you will not own the equipment outright, you can still use it when it is needed. If a rented piece of equipment happens to break or fail, the rental company will typically provide repair services. Therefore, renting often proves far more financially sound for industry owners such as yourself looking to reduce some financial burden.
Many oilfield business operators have figured out the benefits of oilfield rental equipment over purchasing. That is why the overall worth of the oilfield equipment rental market continues to rise. The rental market was worth approximately $26,818 million as of 2014 and is expected to rise to $53,706 million in 2019.
Increase Your Business Strategy
A smart and strategic business owner is a successful one. If you wish to succeed in the oilfield industry, you need to increase your business strategy. Believe it or not, renting oilfield equipment can help you improve your strategy. Strategic business owners understand the importance of testing out equipment or remaining up-to-date by using the newest and greatest equipment on the market.
When you choose to rent your equipment, you are able to test it out. Testing the equipment allows you to find what works best for your company, thereby giving you an edge over your competitors. Given that the oil industry is highly competitive, it is important to raise your competitive edge.
Another way oilfield rental equipment can improve your strategy is by allowing you to lower your bids. When it comes to bidding on a job, a lower bid may win over the client. Since you can lower your expenses by renting equipment, it means you do not have to throw out such a high bid in order to make money on the job. However, if you are financially stressed, you are likely going to need to place higher bids, which may cause you to lose potential clients.
Contact an equipment rental company that specializes in oilfield rentals to find out just how much money you can save. In determining how much money you can save, you will know how much you can lower your bids on each job. Make sure you work in conjunction with an equipment rental professional so that you are always aware of the best equipment and prices available.
Before renting any equipment, make sure you familiarize yourself with equipment rental policies and procedures. Ensure that the rental company will provide you with replacements or repairs should something go wrong with the equipment that you rent.