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.

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.

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.

RigUp helps Operators keep their workforce happy by offering Contractors More Jobs and More Money

RigUp Subcontracting Program Quote

American Resource Development, LLC (Ameredev) is an Austin based E&P company focused on the Permian Basin. Ameredev has successfully leveraged RigUp’s Subcontracting Program as a solution to help build out their oilfield crew to work on drilling, completions and production activities, which include Mud Engineers and Lease Operators.

Ameredev was able to get up and running with the RigUp Subcontracting Program in next to no time, onboarding 17 new contractors in less than a week, with each individual screened and ready to go in 24 hours.

Zach Boyd, Operations Superintendent at Ameredev provided some feedback on his recent experience with RigUp. He explained, “It’s a very simple process onboarding the Contract Personnel.”

Based on a company’s requirements, RigUp can perform background and reference checks, drug and alcohol screenings and the validation of training requirements to meet an organization’s standards. Once complete, contractors are ready to step foot on location and get to work.

Zach added, “RigUp allows ease of operations to assign work and is prompt and straightforward with invoicing.”

In addition to a seamless onboarding process, RigUp offers payroll administration for its subcontractors, including an easy way to log hours online. RigUp’s professional support team is always on-hand to assist both operators and contractors with any industry related challenges.

“The contractors have all been exceptionally pleased to be under the RigUp subcontracting umbrella. I have had very good feedback from the field,” says Zach Boyd.

The high level of satisfaction reported by RigUp’s subcontractors directly correlates to the benefits RigUp provides. By offering the best rates in the industry (substantially less than the standard of 15-20%), contractors take home more of their hard-earned money and receive it on-time, every two weeks. Since signing up to the RigUp program, the independent contractors performing work for Ameredev have realized a combined increase of more than 10% in their net earnings.

RigUp Subcontracting Program

Start leveraging RigUp’s subcontracting solutions for contingent labor today. Whether you’re a an Operator looking to build a team for your next project or an Independent Contractor looking for more work and more money, get in touch with us.

Sign Up as a Contractor consulting@rigup.com | 512-501-5452 x708

Sign Up as an Operator  |  support@rigup.com  | 512-501-5452                                         

Are you Right for RigUp?

Attention Service Companies:

Find yourself on this blog post but haven’t signed up yet?

If you’re a service provider, you may be wondering if this is the right platform for you. These are some reasons why you’re the perfect fit.

If you offer oilfield services…

from rig moves, pumping units and water hauling to weed control and camp housing, if your company provides a service to any activity in the oilfield, you’re Pump Jackin the right place. Even if your company is new or trying to reach a new industry, if you can serve the oilfield and provide excellent services, then you can join our platform.

 

If you’re looking to expand… 

Map of Expansion

who you work with and where you work. New service operations? Expanding locations? Adding regions and new provided services to your company profile can help connect you with new operators.

 

Set yourself apart by… 

getting noticed on the platform. RigUp has over 9000 service companies on the platform and growing every day. Customize your company’s profile page by listing office locations, contact information and provided services. Additionally, updating logos, about section and listing additional information gives operators a deeper look at who you are.

Get started today at www.rigup.com

3 Ways to Get the Most out of Your RigUp Profile

You’re a RigUp Service Company Now!

We are excited to have you, but I know from my own patterns, that often I make an account online only to forget I ever signed up for it. It slowly drifts out of my mind as other things pile up and I begin to forget what actually compelled me enough to sign up in the first place.

So how can you prevent that from happening on RigUp? How do you make sure that your company gets maximum views from an operator? I’ve got 3 ways for you to ensure you reach the potential of your company’s Profile.

#1. Updating image. If you use Facebook or LinkedIn in your personal life it is easy to think about this as a “profile picture.” But this is far more import1456787765_imageant. This is a space to convey all the weight and trust that your brand carries with it. Having the most updated, high-definition, and correctly proportioned image sets the tone for all the business you do on our website.

#2. Confirm regions and product tags. Ensure all regions and product tags accurately reflect your business. We are working every day to optimize our tags for the maximum number of vendors. Updated product tags and regions increase visibility to the operators who are looking for you.

1456787796_phone#3. Invite your team. Rig up is at it’s best when your whole team is able to engage with the site. The collaborative tools are designed to optimize your team’s performance, and having your whole team available encourages the right messages to get to the right people.

Doing these three things will greatly improve your presence on RigUp, driving up the amount and value of transactions.