You know that your equipment and machinery cost you a lot of money. Do you know how much money they're making you?
According to Jory Lamb, President of VistaVu Solutions, oilfield service companies have an urgent need to maximize the value they receive from their capital assets.
"We work with oilfield companies across the production areas of western North America,” says Lamb, “and we observe that asset management is one factor that separates the top performers from everyone else.”
Our team at VistaVu believes that mastering five core best practices in asset management can help any company perform better. Here they are:
1. Define ‘Asset’.
It's easy enough to see that big-ticket items like trucks or drilling equipment count as assets. Would your company consider a torque wrench an asset worth tracking? What’s in and what’s out? A policy discussion is a good place to start.
2. Know Where Your Assets Are.
"Lots of companies are very attached to their whiteboard, or their Excel spreadsheet, for asset management," says Lamb. "At some point in the company's growth, however, those systems start costing you money and it becomes imperative to track assets in real time."
3. Consider the Regulatory Factor.
From transportation restrictions to worker safety certifications, there are many boxes that need to be ticked before machinery goes in motion. Companies with the best grasp of their regulatory situation rarely find themselves stuck with expensive equipment, but no one to operate it.
4. Sweat the Small Stuff.
There’s an obvious incentive to track your more expensive pieces of equipment and machinery. Some companies, however, treat smaller items as if they were more or less disposable. "I'm thinking of items like ladders, hand tools and small parts," says Lamb. "If you know where these items are, it stands to reason you won't be buying as many new ones.”
5. Calculate your Return on Capital Employed.
Lamb recommends that oilfield companies keep a sharp eye on this financial ratio. It's a figure that can be benchmarked initially, and then tracked to see the direction of your asset management performance.
