When you’re in the market for new property—whether it’s a house, a car, or oilfield equipment—you’ll have the decision to lease or own. The choice isn’t always straightforward; there are several factors you must consider, from investment capital to long-term projections. Lucky Services, Inc., in Hobbs, NM, has been in the oilfield service industry since 1986. Their team of oilfield transportation and repair experts explains three factors to consider when deciding whether to rent or buy oilfield equipment.
Purchasing equipment outright is typically more cost-effective in the long-run if you plan to use the machines for several years. Renting or getting a loan often involves paying interest, which can quickly add up. However, oilfield equipment isn’t cheap; many companies don’t have the funds to buy. In this case, you have the option to get a loan to purchase the machinery or rent it, but rental payments are usually less expensive than loans because you’ll spend less on interest. Your company’s financial advisor can help you decide which option is most feasible for your budget.
Next, consider support. Routine fleet maintenance and prompt repairs are crucial to extend the life of your equipment and protect your investment. If you have an in-house maintenance team, maintenance and repair costs won’t be as much of a consideration as it would be for companies who must outsource these tasks. Owning a vehicle requires you to pay for all maintenance yourself. With rental equipment, on the other hand, this job falls on the owner from whom you’re renting.
The same goes for inspections. Oilfield equipment must regularly be inspected to ensure it’s up to code. The job requires a team of skilled workers and, if you have to outsource, this is another cost to include. When renting, it’s the provider’s responsibility to ensure equipment is up to par.
Effect on Operations
Finally, you’ll need to consider the impact renting or buying will have on your business operations. Oilfield equipment and drilling are complex, involving many moving parts. You must ensure you’ll have access to all necessary equipment when the need arises, particularly when engaged in offshore operations. When buying equipment, it’s up to you to make sure no detail is overlooked. When renting, on the other hand, a trustworthy service provider will make sure everything is provided, from logistics to peripheral machinery.
If you’re a New Mexico oilfield company in need of equipment transportation, maintenance, or rental, count on the specialists at Lucky Services, Inc. Over the decades, they’ve earned a reputation for integrity and quality, with top-of-the-line equipment and highly-experienced staff. Call (575) 392-1547 to speak with a friendly team member, or visit the website.