Looking for Oilfield Work? Learn How To RigUp

If you’re looking for oilfield work, you’re definitely going to want to create a RigUp profile. The platform acts as a tool to empower experienced individuals, and distinguish them in the oilfield. Simply put, the more you put into it, the more you will get out of it. You aren’t relying on someone to push your resume, or worrying about it getting lost in a stack of papers. With RigUp, the power is in your hands and the hardworking, experienced hands will succeed.

Looking for oilfield work? Let’s RigUp.

Here’s our tips for how to maximize your profile’s potential to really increase your chances of landing your next oilfield gig.

Step one

Prep your profile. Starting with a bio, talk yourself up. In a few sentences, describe why you’re the best candidate for the job. Don’t just list your years of experience – go bigger. If you had 30 seconds to convince someone to hire you, what would you say? Make your name the one worth remembering. You’ll also provide more insight into your work history – past experience, work locations, project details, direct reports, skills, promotions, and more.

With the current state of the industry, where thousands of people are looking to get back into the oilfield, would you rather depend on someone else to push your resume or have the power yourself to ensure that your resume is at the very top of the stack?

Utilizing robust profile data to match qualified contractors for clients is what the platform does so well, but we can’t do it without you. Don’t skimp on the details – the more you provide, the easier it will be for employers to get a better picture of your skillset, career interests, and basin availability. The more we know, the easier it is for RigUp to find qualified candidates when sourcing for clients. It’s a win-win.

Michael has been recommended twice by previous employers. This helps his profile get more views.

Step two

Be specific. When making your selections as far as career interests, be sure to be thorough. If you express interest in work as a drilling consultant, you will receive real time emails every time a new drilling consulting job has been posted on RigUp. If you do not indicate what you are looking for, you will not receive any emails about new jobs.

Step three

Upload, upload, upload. Make sure you strengthen your profile by attaching your latest resume, any certifications and/or awards, any memberships you hold, and your complete contact information. Keep in mind that hiring managers can filter for individuals by certifications, role, desired basins, industry experience, role experience and location – so be sure not to sell yourself short when listing your accomplishments. The more specific you are, the likelier you’ll appear in an employer’s search.

Michael's review provides a testimonial to his work ethic. He also get's more views on his profile because the RigUp algorithm awards those with reviews.
Michael’s review provides a testimonial to his work ethic. He also get’s more views on his profile because the RigUp algorithm awards those with reviews.

Step four

Request recommendations. With employer reviews, your profile gets extra staying power in the algorithm. The more kudos you receive from your supervisors, the higher your profile will rank in the search results. It’s as simple as that.

With a little effort and some fine-tuning of your professional potential, you can stand out to employers and get more oilfield work. With RigUp, you have the ability to truly set yourself apart, thanks to the easiest way to work in oil and gas.

To learn more about RigUp and how to find oilfield work, visit here.

Managing Oilfield Service Cost Inflation in a Tight Labor Market

“Oilfield service cost inflation and access to quality crews might be a constraint for some. The challenge for E&P companies is most will budget revenues conservatively (to the strip) but the reality is costs could escalate to reflect closer to strip prices if activity levels increase more. At our $54/bbl price deck, we see 0-5% service cost inflation but at strip prices closer to 10-12% is probable. Some of these costs can be offset with drilling and completion efficiencies but that is likely limited to around 5%, on average.” – RBC

In 2018, analysts expect to see a 20% increase in the horizontal rig count and a 50% increase in additional frac fleets in Lower 48. The recent oil price rally and a relatively bullish commodity price outlook have sent E&P and oilfield service (OFS) companies scrambling to position themselves for increased demand.
Drilling & Completions Market Day Rate

As overall oilfield activity increases, the demand for contingent labor rises. According to RigUp data, the number of jobs in OFS nearly doubled from 2016 to 2017. It’s likely that we’ll continue to see those numbers rise this year.

Oilfield Activity

Take Midland — a good indicator for oilfield job trends. In mid-2017, employment growth was outpacing labor force growth by double, and unemployment was nearing historic lows. As we saw in 2011-2012, a labor market this tight leads to OFS cost inflation and a significant degree of difficulty sourcing high quality contractors.

Midland Unemployment

 

As unemployment drops below 3%, the challenge of sourcing contractors isn’t limited to small companies. Even large majors and OFS companies struggle to acquire and keep high quality contingent labor, despite housing large, dedicated human resources functions.


Wall Street analysts expect a 70% increase in frac fleet demand and a 25% increase in horizontal rig demand this year. As we exit this cyclical trough in commodity prices, E&Ps and OFS companies are looking to quickly and efficiently scale their operations. And they’re turning to RigUp to access high quality contractors at competitive prices, which is critical to mitigating rising services costs. The old labor sourcing method of using fragmented consulting firms and small job-placement services doesn’t work in a world where rig efficiency and frac intensity are increasing while cycle times decrease.

Public versus Private Jobs

Let’s look at major services companies. Many today have chosen to partner with RigUp.  As demand for oilfield services picked up, their traditional methods for sourcing crews broke down. Historically, these companies were beholden to antiquated supply chain tools and a phone and email tag system that led to unread emails and missed phone calls going to hundreds of fragmented labor providers.

In this upcycle, that way of doing business is slow and limited. Major oilfield service companies needed quick, reliable access to highly qualified skilled labor and a network large enough to handle requests across the Lower 48.

By using RigUp’s platform to source contractors, these major companies saw a threefold increase in their overall sourcing speed and a 40% decrease in contractor onboarding. That equates to crews getting to work more quickly and, from the outset, working more effectively.

And even more important for long-term cost control and labor retention, these oilfield service companies are no longer flying blind. RigUp’s analytics gives their partners insight into important market data — like current, location-specific market pricing — to help them manage labor costs and remain competitive as oilfield activity intensifies.

And at the end of the day, the contractors are happy, too. They get paid faster, and take home more of their pay. They also tell their friends about RigUp, which makes our network across the country incredibly strong. No matter where you’re operating, RigUp likely has a strong pool of contingent labor ready to get to work.

 

Oilfield Consulting Firm Transparency: Payment Terms

With data from over 165 existing firms, we found that the average consulting firm pays their contractors in 27 days, with some firms taking as long as 60 days.  That is a long time to wait for payment, even if you can afford to do so.

However, what is even more concerning is the fact that this duration is typically a direct indicator of how much credit risk you might be unknowingly taking.  In most cases if a firm cannot afford to pay you until they get paid, then they cannot afford to pay you, if they don’t get paid!  Even worse, we have seen multiple cases of consultants not getting paid by a firm because the firm they were working with had a different client that did not pay their bills, thus bankrupting the company and taking everyones hard earned money with them.

At RigUp, you always have the ability to be paid in less than 5 business days.  In some cases, our clients require that they first verify a job-sheet before we can release payment, which can delay our ability to process payment by a couple of days.

We are able to pay consultants and then wait to get paid through extensive credit facilities that are tailored to provide 100% credit security back to you.

If you’re currently working as an oilfield consultant, click here to get a free quote on how much more money you could be making by switching to RigUp.

RigUp_Social Media-Quote Wade Dixon-01

Quantum Energy Partners and Global Reserve Group Lead $15.8 Million Funding to Support Next Phase of RigUp’s Growth

Using their proprietary software, RigUp has built a powerful digital platform where buyers and service providers can easily connect and transact on a full range of oil field services. Hailed as “the emergent Uber of the oilfields” by Forbes magazine in 2017, RigUp has seen rapid adoption from operators across the country who are relying on the company’s services to complete projects on time and under budget with reduced administrative tasks.

RigUp’s oilfield network platform — which has quickly grown into the largest of its kind — enables buyers across the United States to streamline transactions and efficiently scale on demand by providing them access to 22,000+ service providers across 100+ service categories. Service providers spend less time looking for their next job and more time working projects, taking home up to 20 percent more pay and getting paid more quickly.

The power of RigUp’s technology and their creative business model stands out in the current environment where E&P companies are showing increased enthusiasm and adoption of digital solutions. 

-JEFFREY HARRIS
VENTURE PARTNER, QUANTUM ENERGY PARTNERS;
FOUNDER, GLOBAL RESERVE GROUP

“Everything we’re doing is to help our service providers get more work and make more money,” said CEO and co-founder Xuan Yong. “Our service model continues to grow nicely every month. We’re excited to reach this milestone as a company and have Jeffrey Harris and the team at Quantum Energy Partners join us as investors. We are also pleased to welcome Napoleon Ta from Founders Fund to our board.”

“RigUp has identified an extremely attractive segment of the oilfield service market providing energy companies and their independent contractors a modern platform for coordinating their needs,” said Jeffrey Harris. “The power of RigUp’s technology and their creative business model stands out in the current environment where E&P companies are showing increased enthusiasm and adoption of digital solutions. We expect that the experience, network and resources of Quantum and Global Reserve should help accelerate the company’s growth.”

About RigUp

RigUp empowers the men and women who power the world. Founded in Austin, Texas, in 2014, RigUp’s marketplace is transforming the energy industry by seamlessly connecting service providers with buyers to get the job done — whenever, wherever. For more information on RigUp, please visit rigup.com.

About Quantum Energy Partners

Founded in 1998, Quantum Energy Partners is a leading provider of private equity capital to the global energy industry, having managed together with its affiliates more than $15 billion in equity commitments since inception. For more information on Quantum, please visit quantumep.com.

About Global Reserve Group

Global Reserve Group is led by Jeffrey Harris who established the advisory and investment firm in 2012 following a 29-year career at Warburg Pincus. As a senior partner at Warburg Pincus he had a long history of successful investing in technology companies and was also instrumental in creating and building the firm’s global energy practice and directly overseeing several billion dollars of equity investment in numerous successful oil and gas-related ventures such as Antero Resources, Bill Barrett Corp., Electromagnetic GeoServices A/S, Kosmos Energy, Laredo Petroleum, and Spinnaker Exploration. For more information on Global Reserve Group, please visit globalreservegroup.com.

Media Contact:
Carly Curran
press@rigup.com

Oilfield Consulting Firm Transparency : Take Rate vs Billing Rate

We often find that contractors and consultants are NOT fully aware of the ‘take rate’ that they are being charged by their oilfield consulting firm, nor the benefits (if any) they are receiving in return.

While there are plenty of reputable oilfield consulting firms, there are also many questionable ones.  These non-transparent firms have created an environment where hard working people are consistently taken advantage of.  An informed contractor is the best contractor.  So, whether or not RigUp is the best option for you right now, make sure you are asking the right questions, and making an informed decision.

What is my Take Rate?

We define ‘take rate’ as the difference between how much an oilfield consulting firm invoices to their client (gross billable rate), and the amount the firm pays the contractor (net pay). Very simply, if a consultant’s gross billable rate is $1,000 per day, and the consultant takes home $900, then the ‘take rate’ is 10%.

RigUp offers the lowest take rates in the industry, on average 10% lower than competition.  You will take home an extra $30,000 per year

What is my Billing Rate?

Discovering your billable rate should be as easy as asking your oilfield consulting firm. However, RigUp has learned it’s not always as simple as that. And without your billable rate, it can be difficult to calculate what you’re actually being charged. RigUp has come across multiple cases of firms lying to consultants about their billable rate, making the consultant believe they had a lower take rate than they were actually receiving.  In one such case, we found a consultant that believed he was at 5% for almost a year before discovering a firm had actually been pocketing 17%.

The best way to actually confirm your billable rate is to see a signed invoice from the client.  It shouldn’t be a tough ask, but as you can imagine, sometimes firms don’t want to provide this.

At RigUp, we are happy to offer billable rate verification at any time.  What we bill and what you receive is 100% transparent.  As an independent business owner, this is your right.

About RigUp

RigUp empowers the men and women of oil and gas, leveraging software to provide the best experience in the industry. RigUp gives service providers exactly what they deserve.  The lowest rates, the guaranteed fastest pay, best in class insurance and benefit options, easy to use mobile and desktop app, and the friendliest 24/7 support team in the world. With a customer satisfaction score 55% above the industry average, having RigUp as an oilfield consulting firm option sells itself to contractors. To learn more about RigUp’s consulting program visit rigup.com/contractors.

Year-End Message from RigUp Co-Founder & COO Mike Witte

Dear RigUp Service Providers,

When we started RigUp, our goal was to provide independent contractors with the best work experience in oil and gas. We wanted to create a community where men and women—yourself included—could better perform the work they love, and receive the pay that they deserve.

I have always believed that the right person (or the wrong one) can drastically change how a project performs. As a petroleum engineer, I have worked with my share of independent contractors, drilling consultants, pumpers and gaugers, many of whom I found and hired through the boots on the ground relationships I had made, and the personal network that I had built. Unfortunately, the nature of oil and gas, the long payment cycles and the steep insurance requirements often forced me to send the individuals I wanted to work with to a ‘consulting firm,’ a group that often did little more than collect on 15% of their paycheck. This process felt wrong and unfair and I decided to do what I could to change it.

At RigUp, we work to win YOUR business every day. We believe in empowering the men and women who power the world. Our mission is to transform the energy industry with the strongest network of service providers, bar none.

As we enter into 2018, we will continue to work harder and smarter to create the best community of contractors in oil and gas. We have a lot of exciting things in store for you next year, so stay in touch and always keep in mind that your feedback and ideas are encouraged and greatly appreciated. You have helped make RigUp what it is today, so please let us know how we can continue to improve the community.

We’re changing the energy industry for good, and we’re grateful to have you as a part of the team.

Mike Witte
Co-Founder and COO
RigUp Co-Founder & COO
RigUp Co-Founder & COO

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

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