Staying ahead in the oil business means staying ahead of problems on the road.
When it comes to moving equipment, tubing, water, sand or other materials to drilling sites on time, a reliable fleet can be the difference between getting the job done – and costly production delays. The key to ensuring more uptime and fewer breakdowns is maintenance. Keeping equipment fit for duty takes standard inspections, 
preventive and predictive maintenance at regular intervals and inspections at fuel stops.
Caveat: not all oil and gas companies have the time or the resources to do it themselves. For most, maintaining you oil and gas fleet isn’t a core competency, and, as the boom continues, it can be a costly distraction.
In 2010, the U.S. became the world’s largest producer of natural gas. In June of 2014, thanks to the extraction of energy from shale formations, the International Energy Agency named the U.S. the biggest producer of oil and natural gas liquids, ahead of Saudi Arabia and Russia. Daily output exceeded 11 million barrels this year. It’s expected to hit 13 million by 2019. Clearly, keeping the equipment that supports this growth fit for duty is a priority.
Top 5 Reasons Why Oil & Gas Companies Outsource Fleet Maintenance
- Access to high quality, highly trained technicians
Attracting and retaining qualified technicians are a challenge for any fleet operator. It’s even more challenging for oil & gas companies, where fleet maintenance isn’t a core competency. Most job sites are in remote areas where there are oil wells or natural gas rigs, but not much else. Consequently, it’s tough to find and keep technicians who know the latest electronics, components and complex engines. It’s also expensive to continue training them, so companies end up fighting over the same limited pool of resources.
Takeaway: Given these circumstances, outsourcing maintenance makes a lot of sense. When evaluating potential maintenance partners, look for one with geographic coverage across the U.S. and Canada and a large, trained staff of qualified technicians. - Complex engine and vehicle technologies
Decades ago, government regulations began requiring automobile manufacturers to meet strict emissions requirements. In more recent years, the same thing is occurring with trucks. U.S. EPA emission requirements of commercial vehicles ramped up significantly in 2007, then again in 2010 and 2013. In addition to raising new vehicle prices, these new standards made servicing vehicles much more costly and challenging. The investment in the training, tools and equipment necessary to maintain these complex new engine and transmission technologies has made do-it-yourself maintenance prohibitive for many oil & gas companies, and the mom and pop vendors they often rely upon to service them.
Takeaway: If you don’t have the training programs, tools or equipment to keep up with new technologies, look for a maintenance partner that’s made investments in and commitments to the training, tools and equipment necessary to keep up. Also, look for a company with the systems technology to provide information back to you to measure costs, improvements, and KPIs. - Cost savings and economies of scale
In addition to freeing up time and resources to focus on their core business, many oil & gas companies outsource maintenance and repair to contract maintenance providers to save money.
Takeaway: Choose a maintenance partner with scale you can leverage to save on parts procurement for tires and high-turn items like filters and brakes. - Higher residual value
Many oil & gas companies like outsourcing maintenance to trusted professionals because they know that a well-maintained vehicle with a complete set of maintenance records generates a higher resale value.
Takeaway: Choose a respected maintenance provider with a reputation for service excellence. When you can produce all maintenance records and equipment has been professionally maintained, your proceeds are higher. - Compliance with DOT, CSA and environmental regulations
Compliance is more important today than it’s ever been. It’s also a time-consuming undertaking that most oil & gas companies simply don’t have the time or resources to manage. When they outsource to a trusted and competent partner, CSA scores invariably improve. As for environmental compliance, the onus is on oil & gas companies to track and properly dispose of waste oil, used batteries, used tires, etc., in compliance with environmental regulations.
Takeaway: Partner with an environmentally conscious provider with processes in place to properly dispose of parts and fluids, stay compliant and protect your public image.
Don’t have the resources to maintain your fleet? Consider outsourcing maintenance to a professional provider. With consistent, quality service from a partner you trust, you’ll free up time, have fewer vendors to manage, less paperwork and coverage wherever you go.
Mike Mason, Vice President – Enterprise National Sales, Ryder System, Inc., has worked in the transportation industry for 35 years. He began his career as a Business Development Manager. Over the years, he’s helped develop many of Ryder’s core programs and now heads the company’s Full Service Lease and Contract Maintenance offerings for the oil & gas industry.
