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.
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
Over the next couple of months, we will be using our experience at the briefing to plan for TechUP Inclusion + Innovation Week in November.
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:
“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.
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.
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).
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 email@example.com.
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.¹ Grouping the DUC wells by drilling vintage, and color-coding by county, shows a definite shift in activity.
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.
From 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.
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.
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.
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.
These 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.
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.Sometimes 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.
On Earth Day 2016, we at RigUp are reflecting on why we do what we do…
One 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.
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.
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.
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.
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.
With over $150 million per month in transaction volume on RigUp, our team is constantly helping customers with on-boarding, training, and new features. We care about our users’ experience, and prioritize their needs.
Whether you prefer to speak to someone via phone, email, or chat we’re always here to help. Have a question? In-app chat allows customers to speak with one of our success representatives in real time. We aim to respond in under two minutes – but in reality, our report shows we are a little quicker than that!
But that doesn’t even take into account the number of phone conversations. Our small ops team is on the phones constantly, making sure that every one of the 1,000+ calls that we have in a week are helpful and customer focused. Our goal is to make thousands of our users happy every single day.
But don’t just take our word for it. Here’s a sampling of what our users – both E&Ps and service companies – have said about our dedication to their success.
One of RigUp’s key assets is a dedication to providing the best customer support possible. In fact it’s more than just customer support that we care about, it’s customer success – a dedication to giving our users the tools that they need to succeed. Jeff Bezos, the CEO of Amazon, says:
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 in 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…
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.
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 thecost of swapping unitsgives 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.