The oil and gas sector is one of the largest industries globally, amounting to over $5.1 trillion in revenue.
The oilfield services and equipment market may be smaller than the total oil and gas industry, but it comprises a significant portion. Statistics show the global oilfield services market was worth approximately $267.82 billion in 2019. More importantly, analysts predict the market will grow to $346.45 billion by 2027, growing at a compound annual growth rate of 6.6 percent.
Why Selecting the Right Equipment Matters for Oil and Gas Exploration and Production Companies?
Oil and gas exploration and production companies need the latest state-of-the-art equipment for various reasons. The right equipment helps these organizations extract more oil and gas efficiently. In addition, the oil and gas sector is known for challenging and often dangerous working conditions. The right equipment helps workers perform their tasks while minimizing harm.
Leading oil and gas exploration and production companies also state that choosing the right equipment directly affects efficiency and productivity. Most oil and gas exploration and production companies would hire drilling organizations for their rigs. However, this practice has changed recently. An increasing number of oil and gas exploration and production companies are investing in setting up their internal processes to manage the system better.
What Type of Equipment Do You Need?
It’s important to consider the type of equipment you require before purchasing drilling technology. Here is some equipment commonly purchased by oil and gas exploration and production companies. They include:
- Rotary Drilling: Rotary drilling rigs are used to dig holes by grinding rocks. They’re mainly used in oil and gas production. The rotary drill is brought closer to the impact area, and drilling fluid is injected into the drilling string. The drilling fluid is essential because it consolidates the borehole’s walls, making the process smoother.
- Down-the-hole Drilling: This drilling requires using drilling rigs with rotary cutters numerous times. The rotary cutters hammer the bottom of the borehole with a pneumatic hammer. Once drilling is done, the excavated material is brought to the surface. These drills are well-suited for geothermal drilling since drilling operations are usually 4000 meters deep.
- Top Hammer Drilling: Top hammer drilling rigs are used for operations on percussion systems. Unlike down-the-hole drilling rigs, top hammer drilling rigs remain outside the borehole. Oil and gas exploration and production companies primarily use them for small-diameter drilling.
- Auger Boring: Auger boring is a rotary drilling rig that uses a worm screw. It’s ideal for unconsolidated clay or sand terrain because the worm screw brings the excavated material to the surface.
Things to Look for in an Oil and Gas Equipment Provider
You have to ensure that the oil and gas solution provider you choose has the necessary equipment for your needs. Oil and gas exploration and production companies require highly specialized equipment for their work processes. Pipelines must be sturdy. Otherwise, you’ll lose valuable oil and gas during the transportation process. Likewise, oil drilling equipment must be high-quality; otherwise, you’ll face problems extracting oil from underneath the earth.
Finding the right equipment can be challenging. Hence, ensure you secure the right equipment from a reputable oil and gas solutions provider. In addition, such equipment is very costly. You don’t want to get poor-quality equipment because you’ll have to replace it quickly.
As previously stated, oilfield equipment is extremely expensive. You’ll want to ensure you’re partnering with a trusted oil and gas solutions provider. Ideally, they should have considerable experience within the field. Oilfield equipment and service providers who have provided equipment for large-scale projects will be more trustworthy and reliable.
You should search for a well-established company with a reputable name. The internet will prove beneficial for finding reputable companies because you can check online reviews and testimonials. Reputable companies will also provide quality services and equipment with lower turnaround times.
Oil and gas equipment isn’t cheap. It’s expensive to purchase and operate. However, the more pertinent issue is that equipment can cause productivity loss due to downtimes if it breaks down. Ideally, you’ll want to prevent equipment from breaking down. However, while you can perform preventative maintenance regularly, there’s not much else you can do. As a result, ensure that you get oil and gas equipment from a supplier that provides warranties for their products. Doing so means that you can get your equipment replaced without paying more.
Refrain from Buying Refurbished or Used Equipment
Many manufacturers will often peddle used and refurbished equipment. These come under the guise of being cheaper than their brand-new counterparts. However, the reality is that you cannot rely on refurbished or used equipment, particularly in the oil and gas industry. Most extraction and drilling sites have harsh environmental conditions. While these equipment are built to withstand these conditions, they do get affected by the environment. Equipment starts to break down over time. Many manufacturers will often repair slightly damaged equipment and offer it at a lower price to oil and gas exploration and production companies. While this might seem tempting, refrain from it.
Oil and gas equipment can cost a pretty fortune, but that’s because the industry is capital-intensive. You’ll be saving yourself headaches, time, and money by opting for brand-new equipment instead of saving money buying used or refurbished components.
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CNPS is a complete energy solutions provider. The company launched in 2008, offering OCTG pipes and bars products and solutions. Since then, they’ve grown to become a leading energy solutions provider. Their offerings include renewable and sustainable energy solutions, oilfield service equipment, electronic product solutions, mud logging equipment, etc.