In terms of sheer statistics, the oil and gas businesses are one of the biggest industries in the world. If data is to be believed, the yearly revenue of the industry is somewhere in the region of $3.5 Trillion. Countries in the Middle East like Saudi Arabia, Iraq, and others are the biggest producers of oil in the world.
Other countries like Canada, Russia, and the United States also have large deposits of oil and natural gas. In terms of resources, the oil and gas industry is the largest in the world. It helps run economies, businesses, and global networks.
In this article, we look at how Exploration and Production companies (E & P) should look at selecting the right equipment for their rigs. Additionally, we will also look at why equipment plays a very major role in improving the efficiency and productivity of the process.
Why Selecting the Right Equipment Matters for E & P Companies?
When it comes to equipment that is used in drilling, extraction, and storage of oil, choosing the best equipment matters a lot. Completion Products, one of the leading manufacturers of sand screens in the industry states that choosing the right equipment is directly proportional to efficiency and productivity.
We all know that drilling for oil and gas is not an easy business. It is a highly dangerous field of activity. If you are not careful about choosing the best equipment, you might suffer injuries and losses in terms of your manpower and other resources.
The equipment also results in promoting better efficiency and productivity of the entire process. Crucial seconds lost can result in huge financial losses. The entire system of the extraction process needs to be carefully planned and is dependent on the choice of the equipment. In addition to essential equipment, pressure transducers are also used in the process of oil and gas production to monitor the pressure in the pipel.
Most E & P companies earlier used to hire drilling companies for the rigs. However, in recent years, they have tried to set up their own internal processes to command the entire system better. This means investing in the equipment on their costs and with their own labor.
3 Important Things to look for when Selecting Equipment for your Oil and Gas Rigs
1.The Credibility of the Manufacturer-
Manufacturing components and equipment materials for rigs is not an easy task. It requires years of expertise and technical know-how. You should go with a manufacturing vendor that has at least a decade worth’s of experience in the field. This will ensure that you get proper after-sales service and support from the manufacturer if something goes wrong.
2. Ask for Warranties for the Product-
Oil and gas rig equipment does not come cheap. They are very expensive to buy, run and operate. This is why if something goes wrong, your entire production process will end up suffering. Make sure that the manufacturer gives you warranties for the products that they are selling to you. This means that if a part goes bad, it can be easily replaced at no extra cost.
3. Do not go for Refurbished or Used Components-
Many manufacturing vendors will try to sell you used and refurbished products. They will say that it had slight damage and that they have repaired it and now it is as good as new. They will offer this at nearly half the cost. Rigs and E & P companies should never go for used equipment. If it has been damaged once, it will get damaged again. Try to buy new products.
The Bottom Line Choosing the right suppliers and vendors is critical to the overall success of your operation. Your parts are likely to come from different parts of the world. This is why ensuring that you are working with a trusted parts manufacturing company is essential. Make sure you do your due diligence before ordering the parts and equipment. If you have any other questions, you would like us to answer, let us know in the comments below. We will be happy to help you out.
Also Read:- 5 Reasons why FDI are increasing in Indian Oil and Gas Sector
