“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
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.
Quantum Energy Partners and Global Reserve Group Lead $15.8 Million Funding to Support Next Phase of RigUp's Growth
AUSTIN, Texas, February 5, 2018 - RigUp, the energy industry’s predominant marketplace for on-demand services and labor, has raised a $15.8 million Series B round, including follow-on participation from Founders Fund and existing investors. The company has also secured a $30mn credit facility from Silicon Valley Bank to support its growing revenue stream. RigUp intends to use the capital raised in the equity financing to strengthen its product with enhanced mobile features and streamlined payment solutions and to continue to build the product and sales teams.
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.
Dear RigUp Service Providers,