Without clear ways to standardize your RFQ results, you end up comparing apples to oranges. Often there has been a misunderstanding about what line items to bid on – some may have included freight while others did not. Some set a flat fee for delivery while others charged by the mile.
In an attempt to alleviate those frustrations, RigUp began to work with operators to create job specific templates. These powerful tools augment the bidding and normalization process by giving the service companies specific guidelines. Using a template ensures all vendors are bidding on the same line items, dramatically reducing time spent in the analysis phase.
All of our templates are tagged by product or service allowing you to easily find one that is specific to the needs of your job. If you find that our current templates do not match your company’s requirements we will work with you to create templates specific to your company’s bid.
You may think that this is only beneficial for an operator and that most service companies would rather not use a template. We have found, however, that bid submission rates increased when templates were included on a request. Based on the RFQs of five RigUp operators, those who used templates saw a 13% increase in submission rates.
This increase could indicate that service companies appreciate the elimination of guesswork in the bidding process. They know exactly what the operator is looking for without having to waste time clarifying.
We have not only been able to create templates for tangible goods but also for many complicated services including frac jobs, directional drilling, etc. No matter what the job is, our experienced team of petroleum engineers will create templates that are up to industry standards.
Recently we worked with WPX to create 6 templates for a wide variety of bids. We asked District Production Engineer, Justin Warren what he thought of the process:
Have an upcoming job you want a custom template for? Reach out to us at firstname.lastname@example.org.
In the current oilfield environment, every last dollar counts. Now more than ever E&P’s of all sizes are having to rethink the way they see their costs. Managing spend is the difference between whether a company sinks or swims at sub $40 oil.
Of all the categories of spend, perhaps the easiest to let slip through the cracks is lease operating expense. But carelessness about just a few of these categories begins to pile up and soon you will be faced with a giant bill for expenses you barely considered when you drilled the well.
Taking LOE seriously does not lead to trivial gains. In fact, our data shows that a 10% Reduction in LOE adds 4% to a single well return.* Companies who fail to effectively manage their LOE leave money on the table.
Three large LOE categories, fluid hauling, compression, and production chemicals, need to be addressed separately.
For fluid hauling the most important issue is making the logistics as efficient as possible. RigUp lets you bid out field water hauling & trucking rates to get the best pricing for your locations. Use zip codes to generate a map of all vendor field locations close to the well. Locating nearby vendors cuts travel time and expenses.
When considering compression, the major concern is when to switch to a smaller unit when you no longer need the capacity of a larger unit. Being able to compare the price of compressors either on a purchase or rental basis with the cost of swapping units gives you the opportunity to evaluate the optimal time to make the switch.
For production chemicals the key is pricing. Falling oil and gas commodity products have an effect on production chemicals which leads to discounts. Use our templates to generate a normalized chemicals list so that all vendors are pricing the same material. You can return bulk pricing with tiered discounts or unit costs on an as-need basis.
RigUp Pricebook puts all the cost in front of you so you can ensure nothing slips through the cracks. With Pricebook you can request updated pricing in seconds to keep a handle on all LOE spend categories.
*Based on an industry standard horizontal permian well.
When we set out to build RigUp, we wanted to build a business and a technology that would catalyze positive impact across a vital industry. We had hundreds of meetings with energy executives, field operations, petroleum engineers, and community groups about the state of the energy industry. A common theme of improving “trust” emerged; trust between the operators and service companies, trust between field operations and finance teams, and most importantly trust between communities and the companies operating in their backyards. RigUp is building technology to restore trust in the energy sector. We’re putting together a team of world-class petroleum and software engineers to solve problems that at one point in time seemed unsolvable.
To meet demand from a growing global middle class, McKinsey estimates that global energy resource productivity will have to increase at a 3.2% per annum rate going forward compared to a 1.7% per annum rate from 1990-2010. With 66% of oilfield workers set to retire in the next 10-15 years, the great men and women working in the energy industry have a large task at hand to meet the world’s energy needs. Improved productivity must come alongside stronger environmental stewardship and safety benchmarks, and modern technology is required to improve upon legacy platforms and processes.
RigUp helps producers and service companies visualize and manage assets on location. Using big data and analytics, we allow industry participants to optimize their assets for safety, efficiency, and higher environmental standards without sacrificing performance and economics. Asset level safety and tracking is key to formulating optimal development plans. Our team has a strong focus to reduce the “idiosyncratic risk” of field operations, and our platform will eliminate lapse time and disputes for service companies. We have partnered with a select group of operators and service companies as we begin testing the first version of our platform, and we look forward to bringing on additional partners in the coming months.
Recently, we closed a $3mn series seed round led by Founders Fund. We are humbled to have Founders Fund on board as our anchor investor. We’re proud to call Austin, Texas home and excited about fostering a great start-up engineering culture.
Here’s to the future, y’all.
– The RigUp Team