No. Everyone is just looking in the wrong place.
Rig CallOut has been engaged with a few medium and large E&P companies over the last several weeks. These operators are facing the problem head-on, rather than trying to bury it.
The commonality among them: each asked “How can you “really” help us?” Our answer was simple.
We can help you reduce waste.
The amount of waste among these companies varies – but it seems to be somewhere between 15-30% of their budget.
Where the money is wasted, however, is the same for each.
Waste in their hourly spend due to lack of data visibility.
Vendor margins are already razor thin – and cannot likely be reduced by 30%. But waste created by the lack of visibility and accountability is certainly present and ripe for elimination. A combination of these two strategies yields lucrative results!
Use our calculator to see how much waste you likely have in your budget.
"Waste" is defined as non-productive time, stand-by time, time spent waiting, duplicating work or correcting a situation that "seemed" out of anyone's control.
Using Rig CallOut’s technology can give you the data and visibility you need to eliminate waste while allowing your vendors to remain fiscally sound and able to provide the quality and service levels you expect.
Many OFSE companies have considered laying people & services off to meet these demands.
Less people doing more work could lead to even greater “waste” margins.
Have you ever followed the OFSE money trail? If you dig deep enough, most are supported by inexpensive debt, AKA ”Cheap money”. Do they do this to build extravagant offices or fly in a G6? No, their margins are so limited that they support that category with debt. Margin covers payroll and keeps the lights on. The industry used to be propped up by private family companies because the margins were so great. Rarely do you see those companies these days.
Rig CallOut can be your Margin Expansion Partner! Get a demo and let us show you how much waste you could eliminate.