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 In fact, new technology coupled with lower oil prices have exposed non-productive time in certain outdated, old-school business practices.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 Systems are outdated and the process is broken.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.

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