Oilfield operators are struggling to operate efficiently in today’s challenging environment. To avoid large capital expenditures and maintenance costs, more and more operators are shifting from buying equipment to equipment rental.
Renting equipment provides customers with certainty because the costs to rent are predictable, and the rental company handles the maintenance, repair and delivery, which are variable expenses that can impact the bottom line. Owning equipment requires purchasing parts, building an infrastructure to service the equipment and employing people to perform the work.
With equipment rental, those expenditures are eliminated.
Oilfield operators are turning to oilfield equipment suppliers like Light Tower Rentals, Inc. (LTR), an Odessa, Texas, based company to provide temporary power, portable lighting, pumps and tanks, portable housing, and water filtration and evaporation. Renting helps operators gain access to temporary specialized equipment without the risk, expense and aggravation.
Service, performance, reliability
LTR has been in business for over 20 years. They started operations in Odessa in 1994 with the sole purpose of providing portable lighting to well sites. Today, they operate across the major US shale plays, employing product knowledge specialists and providing the latest model equipment.
Pat Bond, LTR President and Chief Operating Officer, suggests companies research the benefits of renting equipment before proceeding with a purchase.
“We’ve already done the homework to determine the best and most reliable equipment, and our employees have been trained by the manufacturers to service the equipment for optimal reliability,” Bond said. “While other companies are taking shortcuts to save money, LTR will never sacrifice service, performance and reliability to save money.”
When choosing to rent equipment, it’s important to partner with your rental provider to make sure there is total project alignment.
LTR has experienced personnel to make sure their equipment is right for the job. For example, when determining portable power needs, operators need to decide if the most reliable and cost effective option would be diesel or natural gas generators.
Natural gas generators use field gas as its fuel source, eliminating the need to truck or store diesel and the negative environmental effects of flaring the gas.
LTR Project Manager Chad Wolf said a company should ask several questions before deciding on equipment.
- What is the generator’s purpose?
- How long will it be needed?
- Will the generator serve as the main source of power or as emergency backup?
“Typically any long-term job, five days or more, will see the most cost reduction benefits when using natural gas as a fuel source,” Wolf said. “We can do a total cost analysis to see which equipment fits the application.”
Proper maintenance saves money
Maintenance and repair protocols are other variables to keep in mind. Some rental companies will charge low day rates for their equipment, then charge high maintenance and repair fees.
“I’ve seen a lot of customers choose companies without considering extra maintenance costs and potential downtimes due to substandard service. They end up spending more in the long run,” Wolf said.
Maintenance and repair costs are included in LTR day rates. Engine-driven equipment is monitored remotely, so LTR is alerted when service or repair is needed.
“We provide our customers with the security of knowing that our equipment is running at optimal performance at all times,” Wolf said.
Wolf feels strongly that rental companies should deliver immediate customer service as well as perform all of the equipment maintenance themselves. It’s the only way to ensure equipment quality,” Wolf said. “LTR does all of the equipment maintenance, setup and removal. We have an extensive database of standard operating procedures that guide every move we make.”