How rental companies can maximize assets and increase output of the rental lifecycle as oil and gas production surges

June 24, 2022
Renting addresses the wear and tear on oil and gas equipment.

The United States has seen a tremendous oil and gas production surge in 2022. The US rig count is currently up by 271 rigs compared to the same time last year, and Texas has added thousands of oil-field service jobs in the previous few months, but oil producers are facing constraints, including the inability to secure materials amid rising competition for fleets and equipment during this production boom. 

Unsurprisingly, renting equipment to get the job done is now becoming a preferred option, increasing the demand quite a bit—so much that the latest quarterly forecast in the US shows equipment rental revenue is expected to grow by 11.1% in 2022, or reach nearly $56 billion. By focusing efforts on and executing work with rental equipment, O&G companies can streamline operations and increase their bottom line.

Also read: The ROI of renting vs. buying industrial assets 

To navigate growth successfully, equipment-rental businesses can prepare themselves now for the influx of business. The one major way companies can succeed at the process is with an end-to-end solution that maximizes assets and increases output throughout the entire rental cycle. This creates a clear operational picture, from the warehouse to the field and back to the office, while capturing assets and consumable data throughout the rental cycle.

Oil and gas rental equipment can experience plenty of daily wear and tear, so it's important to maintain these assets to ensure maximum performance and profitability. An end-to-end field-service solution can do this in the most efficient way possible by accounting for the entire operational picture, including, but not limited to:

Asset service and maintenance management. Lost time and availability due to equipment repair is detrimental to high rental performance and the flexibility of rental offerings. To ensure equipment is always available for use, maintenance should be conducted effectively and strategically. An end-to-end solution eliminates delays and errors associated with paper handoff and provides complete access to service and asset history. This empowers technicians to address challenges as they occur and to plan for future preventative maintenance and calibration activities.

Accounting for the rental-process equipment and billing. When equipment is delivered and put out for rent, managers can update the rental status of each asset in real-time. They can segment by day and deliver a synopsis of all rental equipment at a glance.

Reporting data. All data must be accessible to ensure a single source of truth for all assets. Businesses can collect data, make it centralized and actionable, and produce reports for profit margins, assets on location, utilization, upcoming deliveries, returns, and pending outstanding orders. Then, reports can be organized by job, region or globally.

Warehouse processes and pick sheets. An end-to-end mobile solution can ensure any rental items requested for a job will be correctly selected in the warehouse. A custom pick sheet enables those on a jobsite to select the necessary equipment and send the information straight to the warehouse, enabling them to reserve equipment multiple weeks out.

The bottom line is that incorporating an end-to-end solution is the most effective way equipment-rental companies in the oil and gas industry can keep pace with growing demand. This approach maximizes assets, increases output through the entire rental cycle, and streamlines the process as a whole—all mission-critical aspects on the road to profitability.

By Matt Danna, senior director of product strategy at ServiceMax