When you have big oil or gas exploration and production projects going on, it is crucial to access the appropriate equipment for the work. By collaborating with leading oilfield equipment rentals service providers, you will be sure to access top-of-the-line equipment so that you can have the job done smarter and faster.
Many advantages come with renting equipment as opposed to buying. Some of these advantages are the following.
1. Reduced repair costs
Contractors who rely on well-serviced heavy oilfield equipment rentals do not have the continuous responsibility of maintenance and repairs -to ensure the machinery remains in good condition. Contractors who rent their equipment lose little or no production time due to equipment repair needs.
2. Minimized disposal costs
Another advantage of oilfield equipment rental is that contractors have no concern over resale expenses. Buying your equipment requires an appropriate plan to sustain the asset’s value over time.
Here are some costs associated with equipment resale that you don’t have to be concerned with you rent machinery:
- Preventive maintenance costs required to retain equipment value
- Marketing cost for equipment resale
- Broker costs to help facilitate equipment resale
Since contractors are not responsible for the upkeep and maintenance of the equipment, they get peace of mind knowing that they do not have to worry about retaining the machine’s value. Moreover, many contractors don’t use their equipment as much as initially intended and may immediately need to liquidate their assets.
3. Flexibility
Most contractors know that each job has its unique equipment needs, be it in contract size or specific details. Therefore, having the liberty to source the appropriate equipment for a particular purpose whenever you require it is an immense asset.
4. Reduction of fleet of equipment
Business expansion usually comes with the need for newer and relatively larger equipment. Renting oilfield equipment to fill in these emerging needs allows you to expand efficiently and quickly without buying and managing more equipment yourself.
5. Appropriate equipment for the work
Different equipment has various models, each with its unique features designed for specific use. Working with equipment that is not suited to your needs wastes a lot of time. Renting equipment can give you access to various models to meet each job’s demands.
6. Less storage space requirement
The more equipment you own, the more storage space you need. With increased storage space comes extra costs.
7. Controlled project costs
The project costs are straightforward with equipment rentals- the fuel cost plus rental fee quoted by your equipment provider. Renting equipment ensures that there are no unexpected expenses. You pay for the equipment when you need it.
8. Access to the newest technology
Equipment technology has advanced significantly over the past few years, enabling contractors to manage their projects faster more efficiently, thereby improving profitability. When you rent equipment, you get access to the newest equipment.
9. Improved cash flow
Renting equipment enables contractors to enhance their cash flow because they cannot invest in capital and other associated expenses. Moreover, you can claim rental equipment charge deduction against your business taxes, enabling you to have more money at your disposal.
