When it comes to the business of resource exploration, equipment for drill rigs is absolutely crucial for the successful winning of bids, as well as the completion of all the contracts and turning a profit. And as you probably know already, purchasing a brand new rig is not a small decision. It’s something that a lot of factors and variables have an effect on. With that in mind, the question is – should you actually buy new drilling equipment?
The downturn in the volatility of the oil and mineral market in the past couple of years has left quite a few drill rigs idle. While this isn’t good for the business as a whole, it also means that it’s not difficult to cannibalize parts and components in order to keep the other active rigs maintained. Naturally, that’s not an indefinitely sustainable way to run a drilling business. But is new drilling equipment a better option than keeping the old one for your specific business? We’ll explore all of the factors that go into such a decision below!
Resources
Naturally, resources are important when it comes to maintaining a business. But besides the expenses of actually buying drilling equipment, there are other factors to think about – such as capabilities, talent, and the time to perform the overhauls required to get an older rig going. If you want to overhaul an existing rig, you could potentially save hundreds of thousands of dollars. Replacing components of the rig or Re-manufacturing equipment such as Blowout Preventers can leave you with exponential savings. Relying on companies such as Pickett Oilfield, LLC to fulfill your pressure control needs for certified remanufactured equipment or new spools and ram blocks could save you time and money.
New Technology
If you want your drilling company to be viewed as a valuable contractor like amroofingcompany.com, you will need to keep up with the latest technology. Companies with older fleets of drill rigs will find that a brand new rig offers more options in terms of productivity; you can drill more efficiently for more meters. Generally, newer rigs are simply more productive, and more reliable in terms of the uptime you can reasonably expect. Plus, not unimportantly, these newer rigs are far better in terms of operational safety, with more features designed for that.
In fact, some newer safety requirements for drilling sites, depending on your jurisdiction, might actually dictate you purchasing a new rig that is in compliance with those; so make sure you’re up-to-date with local drilling regulations. This could make or break your attempts to win a drilling contract.
However, purchasing a Used Drilling Rig that just needs a few components can be cost effective when you buy Certified Remanufactured equipment such as blowout preventers, or New pieces of equipment such as Drilling Spools, Adapters Spools, Spacer Spools, and Ram blocks to replace those parts of the drilling rig to ensure consistent productivity, giving you the best of both worlds in new technology and savings.
Reliability
If you’re working with used drill rigs, you need to be more prepared for them to break down than with new ones. And this means downtime that could severely affect your ability to complete a contract on schedule. The expenses that you accrue due to rig downtime, repairs, and productivity losses could end up amounting to quite a lot. Inspect your equipment, and see if it’s up to snuff in order to decide whether buying new parts or machinery is what you need. Obtaining good used or certified remanufactured equipment could help avoid downtime in the first place if purchased by a reputable company with solid standards on the equipment they sell.
Used vs New
Once you start looking for replacement equipment, the question you’ll need to ask yourself is – do you buy used drilling equipment, or new drilling equipment? When you’re looking to purchase drilling equipment, it’s rarely easy to see if the equipment was used gently, or if it was treated harshly in the field. Therefore, it is imperative to purchase your Good Used, Remanufactured, or New equipment from a company that has been in the industry for many years, a company that has built its reputation on selling quality drilling equipment, such as Pickett Oilfield, LLC.
Expenses
When you decide to buy a drill rig, shopping for low-cost options is always tempting; this is an expensive business, and saving money where you can is always a great thing. However, as with any other kind of product purchase; you need to evaluate just how much the entirety of the ownership costs will be. If you want to be careful with your budget, take some time to gauge the prices of all the crucial replacement parts, as well as other spare parts that you’ll probably buy sometime in the future.
Moreover, you should also keep the availability of said components in mind. If you’re buying an inexpensive drilling rig from a company that doesn’t have a presence on the global market, you may face limited availability of spare parts. Plus, the lead times for the spare parts and components could have an impact on the bottom line of your company. Quite a few manufacturers don’t offer support beyond their regional customers.
However, purchasing these parts from a third party can be a viable possibility. Locating parts of the drilling rig to replace is what Pickett Oilfield does. Their many years in the Oilfield Industry has enabled them to find equipment at prices that other companies simply cannot. Additionally, they are able to do this in a timely fashion to keep you up and running smoothly.
Conclusion
At the end of the day, it’s not always certain whether buying new drilling equipment is better. On the one hand, you may be dealing with more reliable equipment; but on the other, you’ll need to make a bigger upfront investment. It’s all a matter of weighing the different pros and cons and making an informed choice for your company!
Written By: Lisa Roberts (Contributor)