Drilling Equipment Asset Management Tips


Effective deployment of onshore and offshore drilling equipment and assets is critical to any drilling, exploration and production company interested in saving operational efforts and costs globally.

From industry leaders to smaller entities offering oil and gas equipment, all drilling equipment companies that want to dominate the marketplace can ill afford to play fast and loose with their assets. If not in use, drilling assets need to be kept in yards where they are maintained until required by a rig. Each asset must be “ready to run” at all times. And, rig time is considerably expensive, so it’s imperative assets are managed properly.

It’s well known this industry is growing. However, there’s been a large investment globally in efforts to secure ongoing energy programs. According to Fortune Business Insights, the global offshore drilling market was valued at $31.26 billion in 2018. Experts believe it will touch the $56.97 billion mark by 2026, exhibiting a compound annual growth rate (CAGR) of 7.9%.

Here, we delve into a comprehensive guide to drilling equipment inventory management and tips for effective asset management.

The Importance of Drilling Equipment Asset Management

Effective management of offshore drilling assets can help companies drastically cut costs.

Missing equipment can result in high costs for oil and gas equipment operators. To reduce waiting and pickup time, trailers, containers, and other oilfield equipment must be tracked constantly, especially while in transit. Therefore, oil and gas GPS tracking is an essential part of equipment asset management.

While usually assigned to one rig, offshore assets still move across different rigs to conduct routine maintenance and inspection programs in line with changing operational requirements.

Drilling Equipment Asset Management Tips

As discovered by Fortune Business Insights, the drilling services market, which saw a massive decline during the pandemic, is projected to grow from $9.82 billion in 2020 to $17.44 billion in 2027.

Development of shale resources and increasing offshore drilling activity will drive the industry forward, helping revenue grow exponentially over the next few years.

Oil operators can take advantage of the present recovery phase to increase their revenue by employing the right drilling equipment management techniques. Here are a few useful tips to better manage drilling equipment:

1. Identification and Tracking

Assets that are not tagged or identified properly can get lost or stolen. Tagging subsea construction or drilling assets requires special tag mounts that can withstand exposure to seawater for long periods and the high pressure found at the bottom of the sea.

Without a proper tracking system to capture every movement between cost centers and locations, assets may lose visibility.

Once lost, operators will have to spend several hours to find it. Renting another piece of equipment until they find the original one can be expensive.

You can choose from various methods of asset tracking, including:

  • GPS Location and Tracking: While its usability, low cost, and trustworthiness have led to its widespread adoption, GPS asset tracking is more accurate for tracking large assets in transit outdoors.
    Barcodes: Affordable, reliable, and scalable – barcodes are small and do not require power to work. But they do not show location, they can only identify the location of the last recorded scan.

  • RFID: Radio frequency identification readers can track and identify tags and locations at the scan point. You can choose between active and passive scanners.
  • UWB: Ultra wideband radio technology shows the real-time location accurately, reliably, securely, and cost-effectively. It emits short pulses and can transmit huge amounts of data across large sections of the radio spectrum.
  • BLE: Bluetooth is popular for its low power consumption. However, latency and signal interference are its greatest downsides.
  • LPWAN: More and more asset tracking system manufacturers have released low-power wide-area network (LPWAN) solutions. This technology uses lower power and higher signal range. The downsides include lack of a true positioning system, accuracy, complexity of the standards, band-licensing, and network-sharing.
  • Other Tracking Systems: Other tracking systems like infrared and radars also require line-of-sight. While paired with other reliable ID technologies, you can effectively use IR in tracking and location-based solutions.

2. Planning and Implementation

The next step is to start the planning process. Planning needs to be clear, flexible, and cater to changing conditions that you may not have initially anticipated.

The design phase includes identifying users who did not use the system as prescribed, items that were not properly identified or tagged, and maintenance orders that were left incomplete.

The system can then go on to the next phase of being monitored over the long term.

3. Understand Each Component

Drilling equipment asset management presents unique challenges because of subsea conditions and the exposure of assets to harsh environments for long periods.

The way to create an effective subsea management system is to use technology to identify each asset.

Using conventional tags on metals or similar surfaces can get unreadable or lost. So, invest in tags made especially for this purpose. Welding tags may be a more workable option for such assets.

Understanding each component, identifying its workings, and using tags to endure harsh conditions is imperative.

4. Managing Drilling Equipment Costs

While it is very difficult to predict drilling assessment management costs accurately, you can use advanced long-term planning and strategies to manage expenses to a large extent.

Managing costs include charting out drilling schedule forecasting, maintaining workflows, remaining certified, and ensuring capital reserves for warm and cold stacking for dynamic conditions.

Additional Drilling Equipment Management Tips

Make sure to employ teams that will manage all your services, including:

Managing Technical Services

  • Offering expert technical support
  • Undertaking routine maintenance activity
  • Offering dedicated repair and recertification services
  • Providing a streamlined support network
  • Undertaking regular field inspection
  • Offering quality assurance and maintenance
  • Reducing operational disruptions

Providing Network Support

  • Managing permanent asset identification systems
  • Offering a reliable rig management software program
  • Providing strong internet connectivity for seamless data uploads and downloads
  • Offering mobile and web applications for global access
  • Providing a single, managed, secure central database
  • Managing well-trained and responsive customer support personnel
  • Offering analytical reporting services

    Geoforce Handles Your Drilling Equipment Asset Management Needs

    Predictability and consistency are vital in the drilling equipment asset management industry. Geoforce provides you with superior asset tracking, location, and maintenance facilities. Although we don’t track assets under water, our versatile asset trackers require line of sight to the satellite and are best for the powered and non-powered assets associated with both onshore and offshore drilling.

    Use our advanced services and software for your drilling equipment asset management needs. Contact us to get in touch with a representative.