The oil and gas industry never truly had the reputation of a sector that is particularly sustainable or efficient. Be that as it may, although both these resources are ultimately finite and will, at some point, perish, the O&G companies have recently demonstrated great dedication to making the entire industry leaner and less wasteful. One of the main means for achieving this improved sustainability lies in the regular equipment repair and maintenance that, if implemented correctly can lend the petroleum companies considerable operational and financial benefits. Let us take a look at some of the most noteworthy examples.
Lower fatality risk
Oil and gas is an inherently dangerous industry where we have seen some of the most well-known and tragic examples of corporate disasters in history. All these accidents usually result in fatalities, haunt the company’s image, destroy the morale of the staff, and cause severe environmental impact. And even though we can never completely eliminate the chance of these disasters, the job of any responsible O&G company is to do everything in its power to eliminate the risk as much as possible. Regular check-ups, repairs, and equipment maintenance lay the necessary foundations for any future safety initiative.
Smaller issues put bigger worries to rest
Even when it doesn’t result in some tragic workplace accident, equipment malfunction can still cause serious breakdowns and put a considerable strain on the budget of one company. That being said, the oil and gas industry is deeply rooted in complex mechanics where dozens of different systems are tied together and have an impact on each other’s performance. That is why keeping a close eye on smaller pieces and keeping them in good shape can drastically extend the life expectancy of some bigger and more complex equipment pieces whose malfunction could cause much more expensive interventions.
Improving operational efficiency
Due to the very same reasons we have just listed above, small quirks in the expansive O&G infrastructure could cause severe drops in performance and drag down the efficiency of the entire company. That is why any investment in the pieces like, for instance, durable gas lift mandrels can drastically affect the long-term prospects of one organization. The good news is that the latest-gen equipment pieces are themselves designed to push the envelope in terms of performance so they instantly make the incremental improvements that provide excellent cumulative results. All these things eventually translate to tangible financial benefits.
Leveraging warranty coverage
Equipment maintenance is a process that, in spite of all its benefits, requires a lot of time and resources. These issues become only more evident as oilfield equipment wears out and loses its efficiency. In most cases, the owners hesitate to replace these older pieces fearing the eventual financial implications. But, we need to take into account that new industrial equipment also comes with warranty coverage that moves a lot of the pressure off the company’s shoulder and keeps it backed up in case of any serious breakdown. This fact alone means the petroleum companies are definitely getting their money’s worth.
Equipment runs efficiently longer
In the previous examples, we have mentioned that the oilfield equipment that is properly maintained or even replaced runs more efficiently. We would like to point out, though, that these are not simply small productivity spikes. The more effort you put into the maintenance strategy and the more thorough you are when putting it into motion, these high-efficiency periods will extend and allow your company to reap considerable benefits. This is very important since high operational efficiency and waste management are some of the instances where the O&G sector is capable of joining the ongoing green movement.
Higher profit margins
Last but not least, we would like to point out that, when put together, all the topics we have covered above lead not only to higher operational efficiency but also much higher utilization rates, less wasted work hours, higher employee satisfaction, and lower waste caused by the breakdowns. All these things have very tangible financial repercussions so dealing with repair and maintenance issues with all due diligence can drastically increase the profit margins of your company. Keeping in mind the competitive business climate we have to deal with at the moment, these benefits should not be easily overlooked.
We hope these few examples gave you a general idea about how important proper maintenance and regular repairs are for the proper functioning of the oil and gas industry. Being so heavily reliant on heavy machinery, the petroleum sector keeps most of its resources reliant on these mechanical systems. With so many outcomes depending on this single factor, failing to take maintenance duties seriously can set one O&G company far behind the competitors.
Interesting Related Article: “5 Safety Practices in the Oil and Gas Industry“
