Oil prices are down. So now what?

Oil prices are down. So now what?

Anybody who is working in the domestic energy industry in the United States knows that the current price of oil is starting to panic investors, business owners, contractors, and oil field workers. With oil prices so low, the cost of drilling and extracting domestic oil and natural gas has become very expensive. It is now imperative that all those who are working in the domestic energy industry do what they can to stay competitive.

oil pricesHere are a few tips you can use to help keep whatever money you have left in your pocket:

  1. Maintain your machinery. Keeping everything in tip-top shape will help you save money because well running machinery won’t have to be replaced or repaired as often. Change fluids on a regular basis. Power wash your equipment. Store it correctly.
  2. According to this article in the New York Times, reducing the amount of machinery or drills being used will save money and labor hours. Also, many of the traditional oil drillers have moved into fracking to help cut down costs.
  3. Upgrade your sensor technology. Digging a well only to find out that it won’t produce as much as you hope can really eat into your budget. New and updated sensors will help to mitigate this issue.
  4. The internet is paving the way when it comes to costly waste water management. Things like time management, travel and trip planning, and coordination will allow you so save money when you have to hire a heavy equipment hauling company to remove your drilling waste water. Just like how travel agencies take advantage of booking flights and hotels based on high or low demand seasons, waste water hauling companies are known to do the same thing. Take advantage of this.

While the domestic energy industry copes with low global oil prices, it is up to you and your company to trim the fat when it comes to your operating costs. Be thrifty. Take care of your investments. After all, when the oil prices recover and the glut improves, you’ll want to be in the best position possible to be competitive once more.

By |2020-01-16T00:19:02+00:00January 29th, 2019|Uncategorized|