Permian Basin Oil & Gas: How to Maximize Asset Utilization & Visibility - Geoforce

How to Maximize Visibility & Utilization of Your Oil & Gas Equipment in the Permian Basin

Understand the unique asset management challenges in the Permian Basin, and their financial impact. 

Located in the southwest region of the United States, the Permian Basin is the highest producing oil field in the country.  

The Permian basin contains countless pieces of field equipment that face high operational demands and harsh environmental conditions. Without the right asset intelligence solutions, businesses with equipment in this region risk misplacing or exposing significant portions of their assets and losing money because of it. 

The best way to grasp the unique asset intelligence demands of this area is to know what your equipment is up against. Keep reading to understand the key challenges associated with tracking key assets circumstances assets in the Permian Basin, along with the most effective ways to address them. 

Harsh Conditions. Remote Locations.

For starters, equipment in the Permian Basin is situated on a varied landscape that consists of flat plains, plateaus, mesas and desert landscape. Though much of the region’s land is relatively flat, parts of it have rough terrain that subjects equipment to intensive usage and continuous wear and tear. Beyond that, equipment in the basin also encounters extreme temperatures in either direction, which can shorten equipment life spans and impair fragile tracking devices. 

The remote locations and proximity to the Mexican border also expose many assets to a significant theft risk. The Permian Basin’s proximity to the Mexican border subjects the region’s assets to high theft rates. In fact, it was estimated that theft in the oilfield amounted to $1.4 to $2.6 million per month in 2022 — and those figures include only reported instances. Beyond the pipes, copper and oil that thieves have historically targeted, looting of drilling and production equipment is on the rise. The basin’s oilfield has lost drilling rigs, heavy equipment, vehicles and even entire pumpjacks to organized theft schemes. Though the state of Texas has addressed the oil and gas theft issue with legislature that imposes a steeper penalty ladder, lawmakers have yet to mitigate equipment theft using similar means. As such, businesses that operate in the Permian Basin must take matters into their own hands to protect their assets. 

Operational Demands

Equipment in the Permian Basin have especially long hours of operation and rarely sit idle. Being in frequent usage also calls for constant maintenance and quick repairs that allow the equipment to swiftly return to operational use. 

Downtime and safety concerns caused by any inspection or maintenance gaps have harsh financial impacts on businesses. Operational delays and staff productivity lulls caused by tracking mishaps also pose indirect costs that only add to the problem. To champion successful operations and avoid unnecessary costs, assets in the Permian Basin must be unwaveringly reliable for the businesses that depend on them.

Human Interaction

The very people who rely on rugged equipment in the Permian Basin can also contribute to their depreciation or loss. Assets typically face handling from multiple workers, each with varying levels of care and protocol adherence. Even the most rugged equipment isn’t immune to damage from careless handling. One wrong move may lead to anything from extra maintenance or repair needs to a shorter life span. Assets may also require transportation and relocation across rough terrains, increasing their odds of incurring damage or becoming misplaced. 

Keeping tabs on well locations and rig information is also a challenge. Gaining visibility into these bits of data — namely equipment locations — not only benefits internal players, but customers too.  

Financial Impacts for Businesses

Beyond their Permian Basin-specific costs, rugged businesses in the region also encounter standard financial impacts from asset rentals and hoarding. Billing discrepancies and disputes for rental equipment are hard to settle without the support of robust tracking data, leaving renters with lower revenue. Inventory inaccuracies and equipment hoarding also pose additional costs to businesses that could otherwise optimize their asset use.

Asset Intelligence Solutions That Can Withstand the Permian Basin

Typical asset trackers are no match for the Permian Basin’s tough conditions. But that doesn’t stop businesses in the region from needing technology that can address its laundry list of challenges.  

Fortunately, advanced hardware solutions are available. These include key features like global satellite connectivity, intrinsic safety (ATEX Zone 0 rating), and extended service life.  

Look for ultra-rugged devices to track your equipment, giving your business insights that can prevent theft, streamline rental operations and reduce idle time, to name a few. Gaining visibility into your equipment’s whereabouts, usage patterns and other key factors will empower you to minimize costs and optimize your operations on your terms.

Asset Tracking Solutions You Can Count On

Operating in the Permian Basin presents you with a unique set of challenges. Finding a partner with durable solutions you can count on is the key to protecting your oil and gas equipment. 

With Geoforce’s hardware and software solutions, you can gain comprehensive asset intelligence, keeping your team informed and your operations running smoothly. Get a quote today