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’s CEO and Co-Founder, Xuan Yong presents at Enercom 2016

The EnerCom Oil & Gas Conference® offers investment professionals the opportunity to listen to the world’s key senior management present their growth plans and provide industry professionals a venue to learn about important energy topics effecting the global oil and gas industry. Enterprise Values of the 2016 presenters ranged from approximately $9 million to $150 billion.

Our CEO and Co-Founder, Xuan Yong presented at this conference held in August 2016 in Denver, Colorado.

Xuan tells the story of who and what RigUp is, our mission, and how we’re dramatically changing the way the oil and gas industry does business.

RigUp is focused on the upstream industry, including drilling, procurement, completions, and production operations. We currently have over 12,000 service companies and more than 150 E&P’s signed on to the RigUp platform, and those numbers are continuing to grow.

Visit rigup.com to learn more.

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                                         

White House LGBTQ Tech and Innovation Briefing

Last week I was invited to join over 300 lesbian, gay, bisexual, transgender and queer tech leaders at the White House for the third annual LGBT Tech & Innovation Briefing. Together we discussed how technology can help address some of the nation’s biggest problems in criminal justice reform, environment, health, inclusion, entrepreneurship, youth solutions, and improving LGBT federal statistics.

FullSizeRender

Open data from the U.S. Government fuels data-driven legislation and public services, but what if that data doesn’t include everyone? The lack of representation of marginalized communities affects our ability to accurately identify what issues need to be addressed.

I was part of the team working on criminal justice reform. The Police Data Initiative (PDI), encourages transparency in law enforcement to bring community trust and accountability. Launched last April, over 70 police jurisdictions have volunteered to release their data publicly – including Austin, Texas. Denice Ross, senior advisor at the White House and co-founder of PDI, shared how analyzing police data is difficult because it is not standardized. Ross encouraged us to engage with local police departments to gain insight into how technology is used and can be improved from within.

What if we could help enable a new culture of open data in law enforcement agencies where police collaborate with their tech counterparts in local government and the community to publicly release incident-level, structured, machine-readable data on policing? Source

Megan Smith, Chief Technology Officer of the United States, speaks on humanizing data
Megan Smith, Chief Technology Officer of the United States, speaks on humanizing data

Over the next couple of months, we will be using our experience at the briefing to plan for TechUP Inclusion + Innovation Week in November.

Three Rivers Operating Company: Drilling Lean in the Permian with Volatile Commodity Prices

A case study on how RigUp helped streamline the bidding process to save considerable time and money.

In today’s environment of uncertain commodity prices, there remains a constant pressure to ensure operations remain on track, often by doing more with less. This case study is an example of how operators are changing their behavior in order to continue drilling lean in a volatile market.

In April of 2016, Three Rivers Operating Company (3ROC) leveraged the RigUp platform to revise an AFE. In next to no time their engineers were able to:

  • Build “Requests for Quotes” (RFQs) for key products and services within their drilling program.
  • Select qualified vendors from RigUp’s network of 10,000+ Service Companies (many of which were previously unknown to 3ROC, but experts in the Permian).
  • Distribute 8 unique requests to more than 60 vendors at the click of just a few buttons.

Pricing came back within a week and 3ROC were delighted with the results:

Drilling Lean

By marketing our drilling projects through the RigUp platform, Three Rivers was able to discover, investigate and ultimately contract a turnkey option at a significant discount to our daywork budget.Grant Sirgo – Drilling Engineer, Three Rivers Operating Company.

Cost Savings

  • 30% cost savings compared to a previous round of bidding of the exact same services, from just a month earlier.
  • Increased exposure to vendors; More Vendors = More Competition = Lower Prices
  • Almost 90% Execution Rate on pricing received.

Time Savings

  • Consolidated workflow; RigUp acts as a one-stop-shop for creating, compiling and tracking all requests in a single location.
  • All vendor communications are managed on the platform with no phone-tag or email correspondence to worry about.
  • All received pricing is consolidated in an “RFQ Report” to help you quickly analyze bids and take the hassle out of sifting through dozens of documents (potentially saving up to 6+ hours per RFQ).

Process Transparency

  • Real time AFE re-bidding; a must have in the current commodity market.
  • Unbiased, no nonsense, decision making. RigUp acts as the conduit between you and your vendors, effectively removing unnecessary communication from factoring into the decision making process.
  • All bids and communication is retained on the platform for audit purposes.

Looking to get fresh pricing for an upcoming job or program?

  • If you have an account already, click here to start bidding out work today.
  • Otherwise, we’d love to hear from you and help you start saving time and money. You can email us at support@rigup.com.

DUCs and Drilling in the Bakken: Oasis Petroleum Case Study

Our guest author, Tanya Andrien, is the Market Director for Finance and Oilfield Services, and Product Manager for Analytics at Drillinginfo. We were interested in her observations because many of our clients use our marketplace to secure pricing for work on DUC wells.

Oasis Petroleum: Drilling and DUCs in the Bakken

Nowadays, everyone seems to be tracking the Drilled but Uncompleted well inventory (DUCs) to forecast supply and evaluate how operators will strategically utilize DUCs to lower capital requirements in 2016. I am curious whether operators will complete their DUC wells faster than they add new wells, allowing them to maintain production levels now but potentially jeopardizing 2017 results. As an example, I analyzed Oasis’ operations in the Bakken. While Oasis doesn’t appear to be completing its DUCs in lieu of drilling new wells, their activity demonstrates a change in strategy during 2015 and into 2016. Here are some observations:

Oasis has almost 90 DUC wells in the Bakken Grouping the DUC wells by drilling vintage, and color-coding by county, shows a definite shift in activity.

Drilling Info Graphic
FIGURE 1: Oasis DUC Wells in the Bakken by Vintage, Colored by County. Data as of May 15, 2015

As shown in Figure 1, DUC wells drilled prior to June 2015 vary across four counties, and appear to be “deferred completions”, or wells that probably require an oil price recovery to be completed. By contrast, DUC wells drilled after June 2015 suggest Oasis high-graded activity to only McKenzie County, which is consistent with their rig movements, as illustrated in Figures 2 and 3 below.

Drilling Info GraphicFrom March 2014 through June 2015, Oasis was drilling in six different counties (Figure 2). As of July 2015 to present, Oasis has focused solely on McKenzie County (Figure 3).

But did they complete some of their early vintage DUC wells in 2016? I compared Oasis’ May 15 DUC well count to its count in early February, and Oasis had only reduced the DUC count by a few wells during that time in Mountrail, Roosevelt and Williams counties. Oasis does not appear to be completing many of its early vintage DUC wells.

Drilling Info Graphic
FIGURE 4: Oasis New Wells by Month of First Production, Colored by County. Data as of May 1, 2015.

What about McKenzie County? The DUC count in McKenzie County decreased by 5 wells from early February to mid-May, however, we haven’t seen the production results yet as no new McKenzie County wells were brought online since Q3 2015.

Based on Figure 4 above, Oasis has only reported new production in Q4 2015 from Williams and Mountrail counties, and there are no new wells in 2016. Since Figure 1 indicates that Oasis has continued to drill new wells in McKenzie County, the lack of new wells coming online is probably explained by the Confidential Well exception in North Dakota; Oasis reported 26 wells in McKenzie County under Confidential status as of May 15, 2015.

Despite drilling activity being focused on McKenzie County, Oasis’ permit activity since January 2015 demonstrates that, while they filed the greatest number of permits in McKenzie County (130 permits), Williams, Mountrail, and Roosevelt counties were also important, with 51, 41, and 36 permits filed, respectively.

Drilling Info Graphic
FIGURE 5: Oasis Permit Filings, 1/2015 – 3/2016. Data as of 5/16/16.

The recent permit activity in Roosevelt County suggests Oasis may begin drilling here soon, at which time Oasis might also complete its DUC wells in Roosevelt. Monitoring rig activity will be the next indicator of a change in focus.

¹ This count reflects a literal definition of a DUC well, meaning drilling is finished but there is no evidence of production or completion. Because we track rig activity on a daily basis, some of the DUC wells may have been drilled as recently as two days ago and are part of normal work-in-process inventory which Oasis may plan to complete immediately.

Quantifying Customer Success

We recently posted a blog about our belief in customer success. But rather than just saying it, we asked people who had used our e-sourcing platform if they would share some feedback on their RigUp experience. The responses were overwhelmingly positive.

But it isn’t just exceptional customer support that encourages our users to keep using RigUp. The results they have achieved by using the platform speak for themselves.

One of our users, a medium sized mid-continent operator, has seen some great success on the RFQs they have executed through RigUp. From October 2015 to March 2016, this operator submitted a total of 69 RFQs to more than 600 unique service companies. On these bids, the cumulative total value is estimated to be $40mm. Bidding to that number of vendors is impressive on it’s own, but the engagement rates of the vendors was equally impressive.

Customer Success RatesThese rates reflect the dedication of our operations team who are constantly on the phones ensuring the best possible engagement. We have watched these rates improve as our team grows and becomes more efficient.

But RigUp adds value to more than just the bidding process. This operator provided us with an Approved Vendor List (AVL) of 1,000 service companies which we added to our database in less than a week. 

We prioritize processing our operators’ requests quickly and precisely, allowing them to work with maximum efficiency.

This is one of many success stories that we have seen from our users. We have noticed that any operator, regardless of size, benefits from RigUp’s e-sourcing and procurement tools. Make success a part of your story and join RigUp.

User Feedback Can Come from Anywhere

 

Enterprise software often forgets about the importance of listening to the user.

If you’ve ever worked at a large company, you can understand the frustration of being forced to use software that wasn’t designed with you in mind. I strive to challenge the myth that oil & gas software has to be a dreadful experience. But as a design team of one (for now), I have to balance the need for thorough user feedback with the need to iterate quickly and constantly.

I can’t do it alone – which is why our user feedback isn’t sourced from one team. Although every team comes with their own set of biases, they also each bring unique insight to our users that I can learn from.

For example, the customer success team represents the direct line to our users. They ensure our users are happy by addressing any issues that might arise.User Feedback GraphicSometimes we get feature requests for features that already exist. Questions begin reeling in my head –

  • Why was the user unable to navigate to this feature?
  • Did we educate the user on the existence of this feature?
  • Is the copy used appropriate? Is an industry term needed here?
  • Was the UI not apparent enough? Is it hidden in a dropdown? Does it need to be visible on load?
  • Does the feature we thought addressed this request actually address the underlying issue for the user?

From here, I can begin addressing the issue in my next design iterations.

Join Our Team
If you believe in the importance of user feedback in enterprise design, then you’d probably be a good fit for our team. We are always looking for team members to help us transform oil and gas into a safer and more efficient industry.

EHS Solutions for Every Operator

On Earth Day 2016, we at RigUp are reflecting on why we do what we do…

EHS & Profit DiagramOne of our core beliefs at RigUp is that profitability and environmental responsibility are not mutually exclusive. Since the early stages of our company, we have been seeking the best practices to surround these beliefs.

We know that when companies are forced to cut spending, the expensive EHS tag is certainly a tempting place to start. But compromising on employee’s safety or responsibility to the environment will not be beneficial in the long run.

RigUp has created a marketplace where the safest and most environmentally conscious companies can succeed. We want to make sure that EHS needs are no longer a financial burden that companies have to find a place for in their budget. There are three ways that our marketplace offers a solution to these problems.

Screen Shot 2016-04-21 at 2.02.16 PM Using RigUp can ensure that a company is getting the lowest prices on EHS services in their area by increasing the competition between vendors. On RigUp it is easy to include multiple companies on each bid.  Our marketplace enables E&P’s to compare prices across a larger selection of companies.

Screen Shot 2016-04-21 at 2.02.23 PM For operators of all sizes, RigUp is one central place for all environmental needs. No longer do they have to spend the time researching who offers the services that they need or managing multiple separate relationships. Finding vendors in proximity to a particular job can lower freight cost substantially.

Screen Shot 2016-04-21 at 2.02.29 PM Smaller companies with limited environmental connections benefit greatly from a single place to go to meet all their needs. As soon as they sign up for an account they receive access to over 9,000 vendors to choose from.

Environmental responsibility and high safety standards are strong drivers behind why we do what we do. The tools we have created are designed to make sure that exceeding industry standards is not as difficult as it has been in the past. Take control of your EHS responsibility and use RigUp to be proactive. 

No matter what your EHS needs RigUp can help you solve them. 

Happy Earth Day