Leading drill rig companies in the country say that drill rigs and related equipment are crucial when you are bidding for and completing won contracts. It is significantly helpful in making money if you are involved in the mineral exploration drilling industry.
However, if a major decision has to be made, like buying a new drill rig, this usually comes with many variables that need to be taken into account, and yes, they can influence the final decision.
When trying to shop for a drill rig, the process of doing so can’t be viewed like other commodities we buy on an ordinary day. Topping our list to take into account when shopping for a drill rig is whether the item in question is going to be profitable for us in the future. Or would it cost you more to own one than another choice but will help you achieve the same goal for less?
Because of their extensive experience and knowledge in this field, operations managers typically recognize which components may require replacement (e.g., valves, engines, assemblies, etc.). More or less, they have a good hunch of the overall cost of repairing any of the equipment in a typical fleet.
If the cost of rebuilding is on par with the price of buying a new drill rig, then opting for a full-blown audit would be highly recommended. This will cover inspection of individual drill rigs and a thorough review of the current stock of spare parts.
And lastly, the audit process will also involve verifying past maintenance records. By this, you can accurately calculate the total cost of bringing an old drill rig into full swing again if it is a practical measure to make or whatnot.
Resources
Aside from the cost, another vital thing to take into account is resources. Invaluable factors that may influence cost include the talent, skills, and time that a drilling company has to be able to carry out an overhaul work on a seasoned drill rig that has been idle for some time and thus may be needing some work to revive it again.
Availability
The improving market means everybody can expect longer lead times — whether you’re in the process of rebuilding or have just started your business. In situations highlighted by slow growth, market saturation, or downturn, the natural tendency of inventory is to increase, plants are likely to become underutilized, and lead times are shortened.
New Technology
Buying a new drill rig allows you to drill more productively, which is extremely beneficial to the larger and older drill rig fleet. According to leading drill rig companies, brand new drill rigs typically yield higher productivity, offer appealing greater uptime, and, finally, are protected by a slew of different built-in safety features.
With the rollout of new mine site safety standards on rigs, the odds are high that brand new rigs will meet those new requirements as opposed to when you are using seasoned or older rigs.
Reliability
When it comes to drilling rigs, it is a natural occurrence or tendency for older or seasoned ones to suffer from frequent breakdowns than those that are still brand new. Know that such a scenario can hurt your active drilling contracts.
The costs will pile up because of the dwindling level of efficiency. As a result, rig uptime is reduced, and the drill rig will need to undergo some maintenance work first.
Another benefit of having a well-maintained oil drilling fleet is that it lessens the possibility of losing a drilling contract.
Timing
Major drill rig companies have a constant need to deal with the latest things in safety and technological improvements. To keep themselves abreast on these 2 crucial aspects, which is tantamount to remaining competitive.
You need that competitive advantage that meets all your predetermined operational criteria. For example, rod handling fitted rigs may well provide you with the competitive advantage you require to win projects.
If buying a new drill rig makes sense to you now and you are seeing it will also help advance your company’s interests, speak to an expert about the current and upcoming drill equipment and tools that are suitable for your existing requirements.