Hand Safety On Location

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We often take our hands for granted, not realizing how vital they are to our everyday life.

From brushing your teeth in the morning to driving a car, hands play a massive role in the way our society operates. Because hands are crucial to our standard of living, it’s important to know how to protect them from compromising situations.

According to PEC Safety, a technology and training company for contractors,

“The hands are the most frequently injured part of the body. One-third of all oil and gas industry accidents are hand injuries.”

hands

In this field, having capable hands can make or break you. Here are a few ways to make sure that you’re handling the dangers on-site:

Make sure you have the right PPE – personal protective equipment
  • Gloves can be a lifesaver, literally. Depending on what kind of job you’re doing, make sure that your gloves can protect from chemicals, electricity, power tools, sharp objects, and more. Not only do they have to be the right type of glove, but the right size. Comfort is critical for everyday usage. Inspect gloves to make sure they fit correctly, that they are right for the job and are not ripped or damaged.
Stay focused
  • It can be easy to get distracted or become complacent but that’s when most accidents happen. Remember to be aware and watch out for your hands and others!
    New equipment
  • Old equipment can become dangerous if it’s outdated or broken. Make sure that your tools are up-to-date for smooth operations.
Knowledgeable
  • You can have the best equipment out there, but if you’re not properly trained it won’t matter. Knowing how to use the machinery is a top priority for safety and efficiency.
Watch out for your buddy
  • If you’re looking out for others, they’ll look out for you too. Stay ahead of accidents by keeping one another accountable!
Taking Care of Injuries
  • If there is an incident, report it right away and take the necessary precautions for medical attention. It’s important to take care of your health!

 

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If you agree or know someone who could use a few safety tips, share this post and spread the love!


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YETI cooler, Bass Pro Shop gift card, RigUp gear, WiFi hotspot, cell booster and $1,000 cash! All you have to do is complete your RigUp profile! The first 100 entries will receive an exclusive Make Oil and Gas Great Again hat! Learn more about RigUp’s Summer Sweepstakes here.

RigUp’s Offshore Technology Conference Takeaway

Earlier this month, I spent my evenings enjoying the 50th annual Offshore Technology Conference. The conference was an amazing opportunity to network, and learn about upcoming equipment and technology set to shape the future of the oil and gas industry.

Earlier this month, I spent my evenings enjoying the 50th annual Offshore Technology Conference. The conference was an amazing opportunity to network, and learn about upcoming equipment and technology set to shape the future of the oil and gas industry.

During the evening attendees and I enjoyed numerous networking events. Events from notable titans of the industry to newcomers unveiling groundbreaking ideas. I also attended private events, which are staples of the OTC.

During the daytime, I walked the massive showroom floor. The trade show itself could not be contained by Houston’s NRG Center. Trade show booths spilled outside of the main center and into the huge parking lot, causing formal meetings to be held in the actual NRG Stadium.

The majority of attendees, especially exhibitors, were industry manufacturers. However, E&Ps and service companies littered the showroom floor. E&Ps and service companies frequently noticed my company shirt. On several floor occasions, I was stopped to chat about RigUp. They all mentioned great things about our amazing business model and sterling reputation. I was happy to hear that so many people respected RigUp; however, after speaking with everyone, I noticed a consistent theme. Many companies still only know RigUp for a bidding and procurement platform. They were surprised to hear about RigUp’s dominance in the contingent labor space, and potential to solve their company issues.

The overarching problem in this industry is labor: finding the right hands for the job.

RigUp solves this issue for our partners through our technology.

RigUp opens the door to over 11,500 contractors all over the L48. Conferences and like events continue to be great opportunities for RigUp to evangelize our technology and services to the organizations that employ the people that power the world.

If you’re interested in learning more about RigUp, please visit RigUp.com and create a free account today.

How RigUp is Silencing Skeptics with Industry-Leading, High-Efficiency Tech

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.

Contractor Compliance

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.

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 : 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.