Oil is a critical part of most industries. Without access to an ample supply of oil, manufacturing and processing would come to a halt. The importance of oil makes supplying crude oil to the market a lucrative venture.
Specialized drills are set up in oilfields to access oil reserves deep beneath the surface of the Earth. Large equipment is required to set up a successful drilling site. You have the option of purchasing this equipment outright, or you can rent it from a third-party provider.
Renting can offer a number of unique benefits that small oil companies can appreciate.
1. Reduce Upfront Costs
Drilling for oil can be lucrative, but it can also be quite expensive. The average company will drill in multiple locations before finally hitting an oil reserve. Dry wells don't provide any income, so keeping your upfront costs as low as possible is essential.
Renting your oilfield equipment can significantly reduce the amount of money you must spend to drill wells in an oilfield. You will be able to minimize equipment costs and retain more capital to pay for labor and other expenses that will arise throughout the drilling process.
2. Improve Safety
An oil rig can be a dangerous place. The condition of your equipment will have a direct impact on the safety of your oil rig.
Routine maintenance is needed to keep wellhead equipment in working condition. This maintenance can be costly, and it can require that you stop the drilling process while necessary repairs are made.
A rental company will handle all of your routine maintenance and repairs when you opt to rent your oilfield equipment. Faulty equipment can be replaced immediately to prevent downtime and ensure the safety of everyone working on your oil rig.
3. Eliminate Long-Term Debt
Many excursions into the oilfield are classified as short-term. Your company may be doing some exploratory drilling or closing up old wells that have stopped producing. It doesn't make sense to invest in costly oilfield equipment when you only need access to the equipment for a short period of time.
Renting allows you to access quality equipment without incurring any long-term debt. This will help your company remain profitable and keep operating costs as low as possible while drilling for oil.
Renting your oilfield equipment can be a great way to reduce spending, increase safety, and eliminate debt. Work with a reputable rental company to source your oilfield equipment in the future. Contact an oilfield equipment rental company to learn more.