Technology in oil and gas is a bit of a paradox.
While the industry is often stereotyped as change-averse or traditional and slow moving, it would be misleading not to acknowledge how much has changed in recent years. New seismic mapping technologies, horizontal drilling, fracking, robotics, and even solar technologies have all vastly altered the landscape of the energy industry.
The same factors that typically drive innovation — non-productive time, competition, and new capabilities in other industries — are all more present than ever before in oil and gas. In fact, new technology coupled with lower oil prices have exposed non-productive time in certain outdated, old-school business practices.
- Pressure to drive down costs are increasing. Inefficiencies can’t hide under profits anymore.
- Engineering operations have outpaced internal administrative systems
- There’s not really a “shortage of labor”. Systems are outdated and the process is broken.
In an industry with volatile prices and unpredictable external factors driving supply and demand, cost management is crucial.
RigUp’s focus is managing labor market costs and providing scalability for exploration and production (E&P) companies, and oil and gas services companies.
Historically, the oil and gas labor market was fragmented, getting crews together was expensive and time-consuming, and variable labor costs were increasingly appearing as a top 10 category spend.
Traditionally, E&P and services companies hired consulting firms and boutique agencies to manage contingent labor, e.g. contractors. These consulting firms would call around, looking for individual contractors when they needed to stand up a crew. Dispatching services were chained to a slow, time-consuming and expensive process.
The slow-cycle pain points became especially clear when shale took off. Frac jobs are often planned and started within a matter of weeks. Efficient labor sourcing and placement is a requirement.
Our current workforce inefficiencies scenario is reminiscent of the pre-Uber ridesharing market, or the vacation rental market before Airbnb.
Contractors and buyers are currently being forced into disparate agreements because the market is fragmented and often limited to who has executed the Master Service Agreement and who is on the Approved Vendor List. By aggregating oilfield service providers into one platform, RigUp helps facilitate a streamlined process for the industry – work with whoever, whenever.
RigUp’s marketplace increase transaction efficiencies for both buyers and sellers. On average, RigUp saves operators about 25% on variable labor costs, and we can help operators source and scale up to 3x faster than traditional methods. By using our industry-tested technology to place independent contractors, get them properly vetted, and get them on location faster, our users no longer need to dedicate precious time and money on outdated and error-prone human resourcing departments and consulting firms.
RigUp sets a standard protocol for contractor compliance, making it safer to manage labor while maintaining a scalable flexibility.
Individual contractors are properly vetted on client specifications, and our proprietary platform tracks these requirements. Additionally, RigUp’s growing community provides social proof, similar to LinkedIn endorsements or Uber driver ratings.
On the flip side, contractors can make more money (they save a substantial amount from lower insurance costs), and they get paid faster.
We’re now the largest provider of these services to the market. Our next goal is to deliver an even better experience for both buyer and seller. The energy industry is at a tipping point, and RigUp is leading that push forward.
To learn more about how RigUp can help your company source and scale labor more efficiently, please visit RigUp.com.