RigUp’s 3-point check that verifies the bid, field tickets, and invoice

At RigUp, we’re building product features that streamline purchasing and payment for both E&P companies and service companies. We help engineers spend more time on what they were hired to do and less time on paperwork, invoice verification and other time consuming administrative tasks. We help service providers find new opportunities to win business and get paid faster for their work so they can grow in any commodity environment.

 E&P companies should be able to work with any vendor that meets their quality standards without worrying about the arduous MSA processes.

When you schedule a job with a service company through RigUp, we take care of confirming an existing MSA. If there isn’t one, the service company can utilize our MSA and custom-built insurance solution to ensure 100% coverage. The service company’s bid is used to check the accuracy of the field ticket and invoice. No more guessing as to what the job was actually supposed to cost.

Service companies have the ability to push updates, change requests, and signed field tickets to your job dashboard in real time, allowing you to track the job as it happens. Once the invoice is ready for submission, service companies can submit it through our simple and intuitive invoice submission portal. We verify the invoice against both the field ticket and the bid to ensure accuracy of cost and scope.

We call this our 3-point check: bid, field ticket, and invoice all in alignment before it reaches your desk. You’ll receive an invoice submission with a cover sheet outlining our verification, our guarantee to you that you’re paying exactly what you should and not a penny more.

blog_3pt_verificationService companies, if the only thing holding you back from winning work is lack of an MSA or failure to meet the ever-increasing general liability insurance requirements, we can help.

RigUp can get you on location with an E&P company. Once the job is done, you have the option to expedite payment in the event you don’t want to wait for the E&P’s invoice cycle. We offer various options to get you paid quickly (as quickly as 3 business days) so you can stop worrying about outstanding invoices and focus on growing your business.

We believe in a fair and transparent market where the best companies are free to do business in an efficient and safe manner. Our new job scheduling functionality is just another step towards that goal. If you work at an E&P company and want to learn more about how we can save you time and money, get in touch with us. If you’re a service company that has lost work due to lack of an MSA or insurance coverage, contact us to find out how RigUp can get you covered and back to work.

Email support@rigup.com or call 512-501-5452.

You can sign up for a free account today at www.rigup.com.

Wall Street Journal: Shale’s Silicon Valley Boost

Manhattan Institute Senior Fellow Mark Mills speaks with Mary Kissel of the Wall Street Journal on how tech companies like RigUp are driving the next wave of U.S. oil production.

Mark predicted a ‘Shale 2.0’ in January 2016 in his article, “After the Carnage, Shale will Rise Again.

“Silicon Valley is going to revolutionize the oil industry in the same way that it’s revolutionized other industries,” notes Kissel.

When Kissel asks Mills to name companies that are playing a big part of the revolution, Mark refers to RigUp as the AirBnB of the oil and gas industry.

Learn more and watch the full interview below.

Wall Street Journal’s Opinion Journal: Shale’s Silicon Valley Boost

10 Predictions in Oilfield Services for 2017 – An interview with Infill Thinking’s Joseph Triepke

As 2017 gets off to a start, RigUp is sitting down with some of our industry’s most respected experts to share their insight, thoughts, and wisdom as we exit a tumultuous downturn in the commodity markets. Our conversation today with oilfield service veteran Joseph Triepke should provide some insight into how we prepare for the recovery and what to expect in oilfield services this year.


Joseph Triepke, Infill ThinkingJoseph Triepke
is the founder & principal research analyst of InfillThinking.com, an independent oil and gas business research firm. For approximately a decade, Joseph analyzed the oil service and drilling industry for large Wall Street institutions. In 2016, he launched a new industry facing market research firm: Infill Thinking. The firm provides clear updates to oilfield decision makers, exposing new angles on stories and trends that really matter.


Q: After the dust has settled it seems like everyone is ready and anxious for the race back up. The balance seems to be rising service pricing balanced against equipment reactivations and supply reintroductions to the market, what are your thoughts?

A: As far as I’m concerned, your read on the market is spot on. The service space is chomping at the bit, eager to feast after several years of famine. During Q1 2017, we are looking for market share leaders in virtually every segment to push pricing higher. Reactivations are coming, but we may be in a sweet spot for service pricing improvement to start the year as prices are still generally too low to justify large scale reactivations. That could change after a few rounds of re-pricing.

Q: If pricing power returns as you expect, where do you think we start to see the inflection first?

A: Prices will likely first start to inflate across the completions supply chain, starting with pressure pumping. In fact, frac pricing started to inch up during Q4 2016. Double digit increases in frac pricing will be commonplace early this year as calendars are filling up for available spreads. Drilling rig day rates are another area to watch for inflation. The land rig market as a whole remains grossly oversupplied, but the higher end of the market is much tighter than the weekly rig count suggests. For example, super spec rig utilization is tracking above 80% industry wide. Historically this is the utilization level where pricing power returns to contractors.

Q: Since the fall, there’s been a lot of discussion and anxiety over potential future sand constraints (and in some cases, fears that sand constraints could actually limit US supply). From the conversations you’re having with pressure pumping providers and service companies, what’s the outlook on frac sand?

A: At this point, no one we talk with is concerned with frac sand supply in the Lower 48. By that we mean sand is plentiful at the basin level in the biggest plays. Consumption is tracking at about half of 2014 peak levels. We talked to the largest pumper of sand in late December and were told that water supply (while nothing to panic over) is more of a challenge than sand supply. What’s more concerning to us is potential bottlenecks in last mile logistics, meaning proppant delivery from transload facilities to well sites. This is where we see a potential choke point worth monitoring early this year.

Q: Any other gating factors or potential bottlenecks we should be on the lookout for?

A: I’m keeping an eye on labor. The highest quality workers have been or are being called back. The further down the call lists contractors move, the more issues you might have. And you could start to see wage pressure too, starting this quarter in particularly active basins like the Permian. With tens of thousands of workers returning to O&G, we’ll soon start to see just how many of the downturn’s casualties have permanently left the industry.

Q: The theme of “decoupling” services and flattening the multi-level supply chain emerged in the last commodity upcycle and the E&Ps that were early to that theme benefitted in the last downcycle – it also happens to be one of the key value propositions of RigUp – what are your thoughts on this theme as the industry goes back to work in 2017?

A: Taking costs out of the system structurally rather than cyclically is more important than ever. So too is finding structural efficiencies. The Lower 48 D&C activity recovery at oil prices half of prior highs has been impressive. To us, it underscores the critical importance of permanent cost savings. As service pricing reflates, we can’t lose efficiencies or this recovery won’t last long. I think that’s where new solutions like RigUp come into play. The recent downturn catalyzed the adoption of new methods. The coming upturn will institutionalize these new methods.

Q: Everyone is predicting a flood of E&P M&A (led by the strength of Permian Basin takeouts), what are your thoughts on OFS M&A as we head into 2017? Are there more interesting deals that could ensue following the GE/Baker Hughes & CSL/BJ Services announcements late 2016?

A: There’s not as much consensus about a wave of OFS M&A as in E&P because of valuation arguments. But I think deal flow could surprise to the upside this year, due in part by an intense focus on adaptive technology by the leading players, similar to the GE/Baker deal you mentioned. As far as specific deals go, we recently identified four likely OFS buyers in a note to Infill Thinking subscribers.

Q: Given the valuation challenges, how do you see these deals getting done?

A: Look for companies to use their equity as valuation equalizing currency similar to what Patterson-UTI did in the Seventy-Seven Energy deal late last year. We could also see buyers chase more attractive values in the privately held space. As earnings visibility emerges and estimates are revised higher, valuation concerns could start to fade. My sense is bid/asks are closing in this early stage of the upturn, and we could see some significant deals signed soon.

Q: You mentioned technology as a driver of M&A. What themes are you seeing for innovation on the service side?

A: Brute force factors of unconventional development like lateral length, stage counts, and proppant volumes are beginning to test diminishing return boundaries. As this plays out, we see a big push toward gaining sub-surface clarity so that brute force factors can be harnessed more effectively. This is a focus point right now for OFS technologists. The industry still does not understand the complexity of nano-darcy rock, but innovators are working on advanced science to gain visibility and design around the complexities of unconventional formations.

Q: Do you have a prediction on the US rig count this year? There’s been lots of talk about a lower ceiling given efficiencies, do you subscribe to that view?

A: I do. I believe the rig count will be hard pressed to achieve prior cyclical highs. Same concept as the 1980s – we simply need fewer rigs going forward to unlock production. So far everyone’s been surprised by the strength in drilling activity. Before the OPEC meeting, I had forecast 2017 would close with about 815 rigs working. When I made that prediction, there were about 563 US land rigs working, and today we are already up to 640. I still think we finish the year under 1,000, but we could run up a little over 900 ceteris paribus.

Q: What about specific basins, especially the Permian Basin?

A: In the Permian, we’ve been forecasting aggressive 2017 growth for months. Shortly after the OPEC meeting in November, we projected 150 rigs would return to work in the basin (assuming OPEC’s actions backed their words). In just six weeks since then, 40 rigs have already gone back to work in the play. We are standing by our +110 additional rig expectation there, which is the highest we’ve seen from anyone for the Permian this year.

10 Predictions for Oilfield Services in 2017


Get 30% OFF* your Infill Thinking subscription by using the promo code RigUp when signing up for a free 30-day trial! Click here to subscribe. *Offer ends Feb 28, 2017.

Legal challenges related to oilfield contract labor and RigUp’s solution to mitigate risk

With labor misclassification lawsuits mounting for operators and oilfield services companies alike, it’s important that management teams identify a better solution for managing labor related risk.

The purpose of this post is to provide you with greater insight around labor misclassification for Oil & Gas related companies while also introducing RigUp’s solution to help you reduce misclassification risk.

The Profile of an Oilfield Independent Contractor

Many of the reasons for using independent contractors are well-understood by most Oil & Gas Companies. They include the following:

  • The cyclical nature of a commodity based industry requires O&G companies to quickly  and easily expand or contract their workforces to accommodate workload fluctuations.
  • Oilfield independent contractors have specialized technical expertise and certifications acquired through formal training and on-location experience which makes them highly sought after.
  • Specialized oilfield independent contractors insist on and indicate a strong preference that they be retained on a competitive, independent contractor basis.
  • Service pricing has traditionally billed according to time “on-location” making Independent contractors billable based on day rates while on location.
Current Economic Landscape

The considerable economic challenges of the last 24 months in the oil patch has caused great strife among industry professionals. Reduction in billable work and decreases in market rates have created income shortages compared to earnings during the good ol’ days of 2010 thru 2014 when weekly, domestic land rig counts consistently exceeded 1,800 and nearly eclipsed the elusive 2,000 mark on several occasions.

With rig counts hovering around 30% of the peak through the latest downturn, an environment has been created that encourages opportunistic legal activity related to labor misclassification, as out-of-work independent contractors seek income to cover daily expenses and back taxes owed to the IRS.

Classifying Independent Contractors

The US Department of Labor (“DOL”), the IRS, and each state have their own unique factors in determining whether an individual is an employee or an independent contractor. As an example, the DOL has a 6 point guide: webapps.dol.gov/elaws/whd/flsa/docs/contractors.asp

(1) Does the worker play an integral role in the business by performing the primary type of work that the employer performs for his customers or clients? Does the worker perform a discrete job that is one part of the business’ overall process of production? Does the worker supervise any of the company’s employees?

(2) How long has the worker worked for the same company?

(3) Is the worker reimbursed for any purchases of materials, supplies, etc.? Does the worker use his or her own tools or equipment?

(4) Who decides on what hours to be worked? Who is responsible for quality control? Does the worker work for any other company(s)? Who sets the pay rate?

(5) Did the worker make any investments such as insurance or bonding? Can the worker earn a profit by performing the job more efficiently or exercising managerial skill or suffer a loss of capital investment?

(6) Does the worker perform routine tasks requiring little training? Does the worker advertise independently via yellow pages, business cards, etc? Does the worker have a separate business site?

Here’s a more simplified summary: Independent Contractors must be treated as the competitive, professional business owners with the opportunity to win work in a competitive marketplace with the ability to invest in their own operation and growth.

Current Challenges

Innocent decisions made consistently over the course of peak business have created havoc for operators and oilfield services companies alike. Examples include:

  • Providing  non-cash incentives such as shared office space and company owned trucks to retain independent contractors.
  • Providing employee eligible benefits to independent contractors.
  • Stipulating and controlling independent contractor work hours.
  • Non-negotiable day rates.
  • Failing to provide defined project scopes.
  • Lacking documentation as to the professional, nature of the two entities.
What solutions does RigUp provide?

RigUp has brought to the Oil & Gas vertical the only free online marketplace with the same efficiency and transparency being realized in other verticals.

Legal Labor

Let’s talk about how we can help you today. Contact us at support@rigup.com or 512-501-5452.

www.rigup.com

RigUp’s 2016 Year in Review

We started RigUp over two years ago to build the premier marketplace for oilfield services. Our product began as a mobile app for the field and has grown into the best-in-class procurement, compliance, and vendor management solution for the upstream industry.

We believe that through technology, E&P companies and service providers can connect and execute operations more efficiently and effectively. Proper stewardship means a safer environment and American energy independence. Over 150 E&Ps believe in our mission and goal and we are grateful for their support.

In 2017, we will continue to enhance our product offering to meet the needs of our users – some new features include streamlining the MSA process, eliminating the industry’s outdated “procure-to-pay” workflow, and ensuring 100% environmental and safety compliance across the service provider network. Clients have asked and we’ll continue to deliver. Look out for roll-outs of features that simplify the procurement of integrated services. We’re ready to show off our launch of bundled and packaged solutions utilizing various work scopes within a project.

It’s been a year of hard work for our team but the successes have been well worth it. Here are some highlights from the past year. We look forward to delivering you our very best in 2017 – stay tuned!

year in review_final

Wall Street Journal      Bloomberg      Austin Business Journal      Redburn

Bidding & Procurement Using RigUp – 5 Ways Cabot and Silver Creek Succeed

In the last year, we have made significant improvements to our product to enhance usability for engineers, procurement professionals, and compliance managers within our online marketplace. RigUp has earned praise as “the best-in-class bidding & procurement solution for oil and gas.” While still keeping true to our core mission (helping operators and service companies connect more efficiently), we have listened intently to all user feedback, and continue to perfect and mold the platform to meet the needs of our ever growing user base.

To illuminate some of the changes that have taken place over the past year, RigUp turned to a few of our early adopters, Cabot and Silver Creek to analyze the impact. In our analysis, jobs were compared only if their work scope, location, and job requirements were identical from last year to this year.

Quote_Cabot Oil & Gast Corporation

Bidding & Procurement quote

As RigUp introduced more powerful bidding and procurement features such as bid templates, E&Ps and service companies alike have benefitted. For example, both E&P companies showed a significant increase in the number of unique service companies who submitted bids to win the work. Silver Creek had a 27% increase in submissions and Cabot saw well over double the amount of bid submissions over the span of one year. In addition, both E&Ps showed significant improvement in bid submission rates.

Bidding & Procurement Improvements

Despite WTI crude prices increasing 33%+ during the same time frame, Cabot saw costs savings ranging from 14% to 32% on RFQ’s year over year for identical job work scopes. These requests included coiled tubing unit packages, isolation tool work (well intervention), wireline pressure control equipment, coiled tubing motor and mill packages, and workover rig jobs.

Cost Savings Improvements

Silver Creek also saw cost savings of 9% on the same jobs over a similar year duration. The jobs being compared in Silver Creek’s analysis involve completion systems and well intervention by means of running new tubing on all wells with a liner hanger, liner-top packer, and toe-sleeve to test the liner prior to fracturing operations.


5 ways Silver Creek and Cabot leveraged RigUp to improve efficiency & reduce costs:

  1. Sourced more and new vendors through Open Market Bidding.
  2. Tapped into the power of RigUp Bid Templates to allow for apples to apples comparisons.
  3. Took advantage of RigUp’s permission settings and messaging functionality to make it easier for the technical owner and the purchaser to execute an RFQ much faster while maintaining security and transparency.  
  4. Utilized RFQ Reports which allowed for streamlined analysis of multiple bids – allowing Cabot and Silver Creek both to bid to more vendors.
  5. Awarding work and assigning call positions provided a clear call-out structure for their company men in the field.

To learn more about RigUp and sign up for FREE, visit rigup.com or give us a call at 512-501-5452.

5 Key Takeaways from the 2016 Wharton Energy Conference

 

logo      phili3

RigUp attended the Wharton Energy Conference in late October 2016, and we noted a few key insights that will undoubtedly follow the industry into 2017.

RigUp’s CEO and Co-Founder, Xuan Yong led an Upstream Panel that included David Keyte, Founder of Caerus Oil & Gas; James Obulaney, Vice President at Denham Capital; Vidisha Prasad, Managing Director of Guggenheim Securities’ Energy Investment Group;  Jerry Schretter, Managing Director and Co-Head of Upstream at Citi; Tom Tyree, Co-Founder, President, and CFO of Vantage.

A few questions from this panel included: What opportunities exist for mergers and acquisitions in the Upstream space? What assets are economic at $40 a barrel? When do non-core areas of U.S. shale gas come back to play? What’s the outlook for International shale, deepwater, oil sands? What are the ramifications for spending deferral in E&P?

Here are our 5 Key TakeAways from the Wharton Energy Conference: 

#1) The current down cycle has separated winners from losers. Independent E&Ps with quality acreage alongside best in class technologies have grown stronger. While culturally backwards E&Ps have become weaker.

#2) Super major oil companies are valued at a discount relative to leading independents (even in lower commodity prices).

This had made it extremely hard for super-majors to act as consolidators in the down-cycle. Leading independents have used their premium valuations in the public market to capitalize on further acquisitions strengthening their positions.

#3) Leading management teams in “shale” will be statistically driven.

No one drills “dry-holes” anymore. Binary outcomes made winners and losers in a “conventional” E&P world historically. Winners and losers are now made by running leaner and more sophisticated with operating leverage built into an E&P company’s business model.

#4) More distributed teams operating closer to the field. Where as Houston, Texas has historically been the center of E&P headquarters, we are observing a resurgence of E&Ps locating key engineering managers to locales closer to the asset base. Pittsburgh, Denver, and Midland are becoming more relevant than ever.

#5) L48 and North America in general are becoming the swing producer of hydro-carbons. It’s more than just energy independence, it’s energy prowess in the global world.

In summary, it should be no secret that the next up cycle will be dominated by a new class of nimble and sophisticated independent E&Ps.

RigUp can help E&Ps keep up and outpace their competition. Sign up for FREE today!

Questions? Comments? Contact lindsey@rigup.com or visit www.rigup.com to learn more.

Consultants make more by contracting through RigUp

Oil and gas contractors have historically been represented by consulting firms that collect resumes and bring them to the offices of the E&P. Through RigUp, the oilfield’s online marketplace, oilfield consultants can now complete a single application within minutes that presents their experience to even more E&Ps.

RigUp’s operator network spans over 150+ E&P companies. These E&Ps utilize RigUp’s bidding and procurement platform to find various oilfield services, some of which they will subcontract through RigUp. RigUp subcontracts work to consultants with day rate and work acceptance agreements all occurring on the online platform. 

Utilizing its best in class technology and a premier insurance program, RigUp can subcontract at rates of 5-10%, which are significantly less than the traditional industry average (typically ranging from 15% to 25%). For example, an independent Mud Engineer at Parsley increased his day rate that ultimately saved him tens of thousands of dollars.

Quote Copy

Oilfield consultants who have switched to securing work through RigUp have made an additional $170,000 in annualized earnings given RigUp’s industry leading take rates.

The platform goes even further by supplying a compliance and labor manager tool for the E&P. RigUp’s Labor Manager provides an automated compliance platform that allows E&Ps to successfully onboard and manage their consultants seamlessly. Each consultant is personally screened and ready to go within a single business day. RigUp allows for real-time HSE monitoring of the contingent labor workforce, all available at the operator’s fingertips.

Select oilfield consultants for the job

Specify Training Requirements

RigUp has created a platform that allows oilfield consultants to showcase their experience in the industry directly to the E&P company. That said, RigUp has changed the dynamic between E&Ps and consultants for the better. Consultants are exposed to additional work opportunities while E&Ps can select the best workforce for any project at hand.

If you’re an E&P interested in hiring labor through RigUp’s marketplace, or if you’re a Oilfield Consultant looking for more work opportunities and better pay, get in touch with us today.

512-501-5452 | consulting@rigup.com | rigup.com

Open Market Bids allowed Jones Energy and The McDaniel Company to connect and prosper

In July 2016, RigUp introduced the option for E&P’s signed on to the platform to place Open Market Bids. Every time an Open Market Bid is created, the bid is posted automatically to Service Companies’ dashboards. An email is also sent out weekly to the user base that the bid applies to, inviting them to bid on the work.

For the first time ever, Service Companies can search for new jobs in real time and bid on work for Operators they may have never previously had access to. RigUp listened to what Service Companies had been asking for, and we took their feedback seriously. We are always aiming to provide the highest level of service and ease of use to our users.

“When we added Open Market Bids to our online marketplace, we thought it would gain traction quickly with both E&P’s and Service Companies. The feature not only adds another layer of connection to the bidding process, but is an obvious positive for Service Companies because they can now bid on and win more jobs than ever before.” Tyler Myracle, Director of Product, RigUp

Jones Energy quickly took advantage of this new feature and put out an RFQ for Plugging and Abandonments in the Panhandle / Oklahoma region. Through Open Market Bidding, they received pricing from nine vendors. The McDaniel Company was one of the companies awarded, and neither party had worked with one another previously. Through RigUp and Open Market Bids, service providers can find new clients and develop new relationships.

According to Jones Energy, an E&P company in the U.S. Mid-Continent, their approach to doing business is “traditional and strategic, and their methodology is contemporary and forward-thinking. They are never afraid to look at things different and try new ideas.”

RigUp was ultimately an obvious win-win solution for both Jones Energy and The McDaniel Company.

Open Market Bid Quote

“We awarded work to two companies and one of them was The McDaniel Company, a completely new vendor for us. Austin McDaniel was incredibly thorough with his quotes and is great at follow-ups.”

Jennifer added,It’s nice to have more than one dependable company to work with on these projects, and using RigUp helped us find The McDaniel Company.”

In a much similar scenario, The McDaniel Company has been using RigUp for about six months now, and one of the first projects they were awarded through the platform was the opportunity to work for Jones Energy.

Open Market Bid Quote

The McDaniel Company serves over 150 clients ranging from small independents to many major oil & gas companies. Operators across a six state territory, including Texas, New Mexico, Oklahoma, and Louisiana, utilize McDaniel’s P&A services. The McDaniel Company is also active in the Oil County Tubular Goods (OCTG) distribution & sales business specializing in used reconditioned & inspected tubulars.

“Why are we in the business? To save our clients time, money and provide them with the assurance that any job which we perform will be carried out in a reliable, safe and hardworking manner,” says Austin McDaniel.

In just a few short months, open market bidding has become a go-to for many Operators when placing bids, and Service Companies have been quick to react and adopt the feature. The Open Market Bid stats speak for themselves.

Open Market Bid Stats

Are you an E&P Company? Start utilizing Open Market Bidding on RigUp today. Click HERE to log-in.

Some of the quickest and easiest products to bid out include casing, tubing, and plug and abandonments. If you need help, contact us, and we’ll get you in touch with one of our Petroleum Engineers.

Are you a Service Company? Visit your RigUp dashboard to find new jobs that have been posted to the Open Market. Click HERE to log-in.

Questions? Call us at 512-501-5452 or email us at support@rigup.com.