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Transportation of Oil and Gas Equipment Experiences Growth

PTI was written up in several ezines. Read our recent mention in the article below!--Trey


by Judy Stevens

While most oil and gas companies seem to be crippled by the fear that invades today’s economy, several industries in this field seem to be have taken a shift for the better. One of these fields is the shipping or hotshot jobbing of oil field equipment, supplies and other related machinery.

“The oil and gas related fields; especially logistics of oil and gas equipment are still going strong,” states Trey Thompson, CEO of PATRIOT TRANSPORTATION, INC. PTI is one company that has seen growth first hand. Trey Thompson says, “a lot of the reasons we are set up in Houston, Texas is because so much of the transporting leaves from Houston.  Houston is still considered the main hub of the oil and gas industry.”
The North American oil field services and equipment industry has also been aided in the past by higher natural gas prices, thus increasing rig use. Unfortunately, the international market has not improved by the same degree.  So, a lot of the shipping and hotshot services that transport oilfield machinery are needed. Transportation of equipment is strong all over the southern part of the United States. Requirements for oilfield machinery and gear in the United States will continue to grow by a large percent each year. This year and ongoing it supersedes $5.6 billion.

Although the oil field business seems to have taken a lot of hits lately and there are still those companies that manufacture oil field equipment, the Oilfield Equipment Leasing services have flourished. These companies offer professional lease programs providing a cost-effective means for oil and gas producers to obtain income-generating equipment without spending capital that is needed for operating costs.  Conservation of the equipment and repair does allow the oil industry to cut their expenditures dramatically, and that helps the hotshot transportation.  Rather than manufacturing new equipment, many oil companies are using older and prefabricated equipment thus creating the need for more logistics during these tough times.

Repair and maintenance of petrochemical and oil field equipment is also growing.  Most oil and gas companies don't build their own drilling rigs; for this, oil well equipment companies offer drill bits, lubricants, pumping equipment, subsea "trees", and even entire rigs for purchase and contract.  When this is the case, they need a good, reliable and safety conscious trucking or logistics company where they can transfer this equipment throughout the Southern States.  

Asset Management and quality control are critical components of the oil field business.  Another negative is that the manufactured pieces must undergo a rigid process of inspections to adhere to American Petroleum Institute (API) standards - a demanding but necessary procedure to keep drill pipe, tubing and casing products operational in harsh environments.

When the oil and gas industry foresees a need to cut back, they are choosing repaired, used, and rented oilfield equipment and they are using outside local transportation to provide for the delivery of these products.  

Hotshot companies that have built its reputation on its reliable service and hard work jobbing or transporting this equipment to the oil field as well as other oil field companies in the Southern part of the United States have seen growth. With this growth, Trey Thompson says, “It is even more important to deliver complete end-user products and to make sure the company delivered on time and to the quality you expect. I see this as a positive area of growth even in this environment.”

So, in this economic climate, saving money and cutting costs on manufacturing equipment is not as desirable as maintaining used oil field equipment. This could become the template for the future.  While conventional approaches were to manufacture new equipment, more and more companies are pushed for solutions to drill fewer wells and recycle nearly derelict equipment in order to save time and money.  Thus, the delivery of this equipment is even more important and is in more demand in today and the near future.

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