workover rig cost per day supplier

Workovers are the most common expenditure operators need on their oilfields. However, finding a service provider and getting their rates are not readily available in the industry. Operators would benefit from knowing the market average for a workover and gain reassurance they are getting a fair price for their services. This research is based on finding workover rigs for Zapata, Texas. The graph represents four service provider companies and their hourly rate for a workover rig.

It is important to note that due to slower oil development in recent years from the downturn in 2015 to the pandemic and downturn in 2020, smaller workover rig companies in Zapata, Texas have increasingly moved to the Permian Basin or have been acquired by larger service companies in the area. This has caused the workover rig service industry to be dominated by a few major servicers around Zapata. For Zapata, the ideal areas to look for servicers or workover rigs are Alice, Laredo, and Freer in Texas.

Hourly rates for workover rigs vary and there are always competitors for services, especially for services as common as a workover rig. The market average price for a service provider is intended to provide the oil and gas operator better insight on the cost of services around their area.

An operator who wanted bids on a workover for his well requested this vendor list and decided to get connected with Company B to get the work done. He said it was a quick decision because what he was already paying for and what he was going to pay for cost more than the rates on this list.

In order to help oil and gas operators reduce operational expenditure, Petrofly researches the servicing market to provide the most economical options for your oilfield service needs. Petrofly’s platform is the complete upstream solution and leveraging the market average is one of the unique tools operators utilize to ensure lower operational costs.

The commodity price downturn is prompting price reductions among well service contractors in the greater Rockies outside the Williston Basin. In mid-January 2015, service providers report rates down about 10% quarter-to-quarter, similar to reports elsewhere in the oil patch as operators push the service sector for cost reduction. Meanwhile, larger service providers worry about further rate cutting from local, privately-held contractors. Rate reductions have not yet translated to reduction in wages for hands, although expectations are that pricing is going to drop further on the basis of lower commodity prices.

Among Survey Participants:Rig Demand Down QTQ [See Question 1 on Statistical Review]. Seven of the eight respondents said that demand had dropped in 1Q15 vs 4Q14 and all but one blamed lower oil prices for the slowing. One respondent that had seen a slowdown in demand said it was because they had finished all of their completion work. The respondent who had not seen an effect on demand said that their work was steady, but they were hearing of others slowing down.Mid-Tier Well Service Manager: “We are seeing demand slow for rigs and prices are being reduced. Operators are asking for 20% reductions, some are asking for 30% and they may get it. The greater reductions will be from people who are local because they don"t have the overhead expense. The service won’t be as good. On average, operators may get 15% of that 30% they are seeking in reductions.”

Number of Rigs Sufficient [See Question 2 on Statistical Review]. Six of the eight respondents said that the workover rig inventory is excessive for the current demand, while two said that it is sufficient but tipping toward excessive.Mid-Tier Operator: “Operators here are basically focusing on the higher production wells and going to ignore the lower ones. We have heard companies are laying down workover rigs. One company is going from 17 to 13.”

Well Service Work Weighted Toward Standard Workovers and Routine Maintenance [See Question 3 on Statistical Review]. Among all respondents, standard workover work accounts for 34% on average, routine maintenance accounts for 34%, plug and abandonment (P&A) accounts for 16% and completion work accounts for 16%.Mid-Tier Well Service Manager: “Our work slowed because we finished our completion work so the client gave us some production work to keep us steady till we finish this fracking job.”

Hourly Rates Consistent Among HP Series [See Question 5 on Statistical Review]. Most workover rig horsepower falls within the range of the 500 series. The 500 HP hourly rates average $310 to $400/hour depending on what ancillary equipment is contracted. See Table II for Average Hourly Rates.

Hart Energy researchers completed interviews with nine industry participants in the workover/well service segment in areas of the Rocky Mountains outside of the Bakken Shale play. Participants included one oil and gas operator and seven managers with well service companies. Interviews were conducted during January 2015.

3. Looking at your slate of well service work - on a percentage basis - how much of it is workover vs. routine maintenance vs. plug & abandonment (P&A) vs. completion work?

Well work and well servicing is a complicated subject and there are a lot of moving parts. It is potentially so complex that many oil and gas companies seek to avoid it altogether when they can. A thorough understanding of the rank order of the options available, and what they can do is the key to being able to unlock tremendous value. A few ‘simple’ or fortunate’ or ‘clever’ oil and gas operations can be set up where operations are simple – drill a well, complete it, produce it to abandonment pressure and conduct abandonment. For every other situation well servicing is the key to profitable operations. This is a very general way to look at the cost of well servicing, and how it affects operations in the field. The exact details will vary from country to country, field to field, region to region and company to company.

The following general group of services are available for well work. They are listed roughly in order of cheapest to most expensive for land operations.

In shallow waters with fixed platforms or other facilities with direct well access the chain of costs and values are slightly different - the overall costs are generally higher, but the general ‘ladder of values; is different also.

Pumping services tend to get more expensive offshore, because of the degree to which the equipment must be assembled on location. Wire based services still require assembly, but because the parts are smaller can usually be mobilized in larger ‘chunks’ thus requiring less assembly on location. On land, fluid pumping equipment is much more readily portable on trucks or trailers. Workover rigs on land are incredibly cheap in most places as measured on a per diem basis. Part of their advantage is that they arrive to location with most of their key components already assembled in/on one truck. This advantage disappears offshore where the rig must be assembled on site first.

In deep-water with subsea wellheads where there is no permanent facility available to access the well, costs are turned on their heads, and look roughly as follows:

Paying for a drilling rig or intervention vessel is the price of gaining physical access to the well. Everything else must be added to it to get physical access to the general area and then gain access to the well. There is no need for various forms of standalone pumping services because the vessel or rig will already have a cementing unit and/or the mud pumps available for that sort of work.

Performing the same operation over and over again has significant cost savings attached to it. Once the correct housing and supply arrangements are in place, and all the necessary people and equipment have been assembled, continuing to use it altogether ‘as is’ can save an enormous amount of money compared to dispersing it all and starting over again later. For land operations, this is most pronounced in areas where reservoir, surface, and operational practices allow for grouping wells together in relatively small areas, and for clustering well pads. Depending on what work is being done to the wells and how close together they are it may be possible to ‘hop’ from one well to the other without ever moving the equipment on a road or doing a complete rig-down.

This is one area where offshore operations can see tremendous improvements and synergies. Having facilities with multiple wells at a single physical location allows for extremely high levels of flexibility economies of scale if the same sorts of equipment and skills can be utilized on one well after another in succession.

Deepwater operations can benefit from this too, but not as much as ‘traditional’ fixed or surface access facilities, because the overall day rate of the rig or intervention vessel is often much higher, and the process of switching between wells is often much lengthier.

On land, you hire the unit and crew, and a small diem fee is added to the cost of employing them so they can stay in a hotel and get food when they are not working. The crews will transport themselves to and from the well and move the equipment to and from the well also.

Offshore, housing, food, and transportation to and from the wellsite must be arranged as part of the work to be performed. This involves contracting crewboat(s), work boat(s) helicopter flights, catering services, and crew quarters buildings with a galley, laundry, showers, toilets, etc. Extra space must be allocated or created at or near the wellsite facility for the extra quarters. Many of these same factors are also present in remote land locations. The nature of operations in the Sahara Desert, or the North slope of Alaska, or the Congo jungle are more like those offshore with respect to cost and access than they are to more ordinary land operations where ‘normal’ food and housing operations catering to the population of the area in general are accessible.

For deepwater, everything for offshore must be provided, but with the additional difficulty that none of it can be made permanent, because there are no permanent surface facilities. In addition, simply getting to the wellhead once you have a drillship, semi-submersible, light well intervention vessel or other type of access facility floating over the top of the well is a considerable challenge. Depending on the nature of the operations which must be conducted, the access method, and the weather and current conditions it may take a period ranging from a day or two, to several weeks before access to the well is accomplished and the well work itself can start.

The costs of conducting business in each of these 3 areas tend to scale very roughly in factors of 10. 100 wells making 50 bbls of oil each on land is a cash cow. Offshore that is a disaster, because the cost of servicing those wells is prohibitive. A more reasonable scenario is 10 wells making 500 bbls of oil each. In deepwater, a well making 500 bbls of oil a day is an abandonment candidate, if indeed it got that far along before abandonment. One well making 5,000 bbls a day is more. The direct cost of hiring (for example) a snubbing unit do not scale by factors of 10, but the overall cost of employing a snubbing unit do. As a result, different types of well servicing make sense in one area which may not make sense in another. On land in areas with ordinary access to infrastructure (not the Sahara or Alaska) operations like slickline are often so cheap that they are a routine procedure, with preventative or predictive maintenance schedules to scrape away paraffin or remove small amounts of scale. By contrast, it is completely cost prohibitive to try and attempt to perform similar work in deepwater – you either design and operate the well in such a way that paraffin and scale do not build up in the wellbore at appreciable rates, or you P&A the well. The cost of routine mitigation is simply too high. The relative cheapness of most workover rigs on land is another major factor. Many types of operations which could in theory be carried out in some other way are done with a workover rig simply because it is the most cost-effective technique, even if other methods might be faster, or involve fewer people. The relatively high cost of a rig for offshore facilities means that in most cases every effort short of getting a rig is tried first. Then a catalogue or list of operations to be conducted by a rig at a given facility will be gradually built up over time until they reach a critical level. At that point, a rig will be sent out to conduct all the operations which only it can perform, moving from one well another to save costs by making the work repeatable.

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A wide variety of oil well workover rigs options are available to you, You can also choose from diesel, electric and gasoline oil well workover rigs,As well as from energy & mining, construction works , and manufacturing plant. and whether oil well workover rigs is unavailable, 2 years, or 6 months.

About products and suppliers:Alibaba.com offers 222 workover rig manufacturing products. About 50% % of these are oilfield drilling rig, 28%% are mine drilling rig.

A wide variety of workover rig manufacturing options are available to you, You can also choose from diesel, electric and gasoline workover rig manufacturing,As well as from energy & mining, construction works , and manufacturing plant. and whether workover rig manufacturing is unavailable, 2 years, or 6 months.

OSLO, Sept 14 (Reuters) - Rental rates for offshore oil and gas rigs could rise to $500,000 in the coming months, company executives said on Wednesday.

Daily costs to hire a rig, known as the dayrate, have already more than doubled from two years ago to some $300,000, with some top-end rates reaching close to $400,000, according to Oslo-based brokerage Pareto Securities.

Drilling companies are in a stronger position to demand higher rates to rent their equipment after several lean years led to a wave of mergers and pushed them to scrap older rigs, leaving fewer available now that demand is rebounding. read more

Updated monthly, the Offshore Rig Day Rate Trends report tracks competitive mobile offshore drilling fleet day rates and utilization across three representative rig categories. Constructed with information from rig operators and owners worldwide, offshore rig day rate data is the most accurate information of its type available from any source.

Day rates published by IHS Markit are presented in good faith based on our best understanding of the market at the time, and may be subject to adjustment. Day rates are charted as an average of the high and low for each month. Utilization is the percentage of contracted rigs out of the total competitive fleet supply. The data is updated on or about the 15th of each month. The data points used to derive the averages are available to subscribers to Petrodata"s RigBase or RigPoint market intelligence tools.

The Downstream costs services team would like to invite you to our Houston Enclave Parkway office for the Third Quarter 2022 Downstream Costs Update...

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A workover rig. Operating rates vary. Petrodata Offshore Drilling Fleet Day Rate Index offers monthly updates of competitive mobile offshore drilling fleet day rates and utilization across four rig.

Using econometric analysis, we examine the effects of gas and oil prices, rig capacity utilisation, contract length and lead time, and rig-specific characteristics on. More than % of surveyed drillers expect to put more rigs to work over the next US land rig day rates on average—aggregated across all rig classes and all. The value lossr(i, last) is equal to the estimated flow rate of well r multiplied by its iddle time once it is assigned to the last position of workover rig i. This idle time is. A discussion of crude oil prices, the relationship between prices and rig count, Workover rig count is another measure of the health of the oil and gas industry. Table 2. Sample Operations Sequence--. Mechanical Descaling. COST. TOTAL COST. UNIT. RATE. MOBILIZATION-OEMOBILIZATION. Workover Rig. 20 hrs.

More than 75 years ago, it was. This allows increased recovery rates. Both drilling rigs and workover rigs are expensive resources that are typically limited well in the field, then we may be able to maintain the field production rate. United Kingdom operating over 25 drilling and workover rigs and providing a Marriott offers a selection of business arrangements from traditional day rate. Offshore Rig Fleet. Accommo- dation. Jack-up. Super. Self-. Workover. Jack-up The improvement in rig rates that has characterized our North American. The rigs have initial positions and.

The wells have different loss rates, need different services, and may not be serviced within the horizon. On the other hand, the number of available workover rigs. On a drilling rig, he or she may be responsible for the circulating machinery and the conditioning of the drilling or workover fluid. derrickman: n: see of drilling fluid and utilizes the hydraulic force of the fluid stream to improve drilling rates. To combat this CERP, as announced. All Drilling Rigs Trailer Mounted Rigs Carrier Mounted Rigs Workover Rigs Rebuilt IHS Markit can provide current and historical day rates for all offshore rig.

Specialties: Workover Rig, Swabbing Units, Air Packages For more information on rates and availability please call (701)8 7201 or email any questions to. The company owns 3 drilling rigs, 3 workover rigs, as well as special-purpose Availability of the Top drive allows drilling wells at high rate and reduces the risk. Cost Analysis The overwhelming majority of the equipment is manufactured by third parties. Constructed with information from rig operators and owners worldwide, offshore rig day rate data is the most accurate information of its type available from any source. Offshore Rig Day Rate Trend Coverage. IHS Markit can provide current and historical day rates for all offshore rig categories worldwide. Most workover rig horsepower falls within the range of the 500 series.

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Day rate refers to all in daily costs of renting a drilling rig. The operator of a drilling project pays a day rate to the drilling contractor who provides the rig, the drilling personnel and other incidentals. The oil companies and the drilling contractors usually agree on a flat fee per contract, so the day rate is determined by dividing the total value of the contract by the number of days in the contract.

Day rate (oil drilling) is a metric that investors in the oil and gas industry watch to evaluate the overall health of the industry. The day rate makes up roughly half the cost of an oil well. Of course, the price of oil is the most important metric by far in the oil and gas industry.

That said, investors can gain insights into the oil supply and demand picture by watching metrics like day rate and rig utilization in addition to global inventories. Day rate fluctuations, which can be wide, are used by investors as an indicator of the health of the drilling market. For example, if day rates fall, investors may take it as a sign to exit oil and gas positions.

Day rates can be used to assess the current demand for oil, ultimately gleaming insight into where oil prices are headed. An increase in the price of oil increases the number of projects that can recover their extraction costs, making difficult formations and unconventional oil reserves feasible to extract. The more projects greenlit on an economic basis, the more competition there is for the finite number of oil rigs available for rent – so the day rate rises. When oil prices waver and fall, the day rate that rigs can command drops.

As an example of actual day rates – Transocean signed a contract in December 2018 with Chevron to provide drilling services. The contract is for one rig, will span five years and is worth $830 million. The effective day rate for the rig is $455,000:

Like the day rate, the rig utilization rate is a key metric for determining the overall health of the oil and gas sector. The day rate lays out a large part of the costs of drilling a well, while the utilization rate is how many wells are being used.

Investors use both of these metrics and a fall in each could signal a slowdown in oil demand. High utilization rates mean a company is using a large part of its fleet, suggesting oil demand, and ultimately, oil prices are on the rise. There is a positive correlation between oil prices and both day rates and rig utilization.

The strength of the correlation between oil prices and day rates is not consistent. The correlation is strong when oil prices and rig utilization are both high. In this situation, day rates increase almost in lockstep with prices. In an environment of rising oil prices and high utilization, the day rates in a long-term contract will shoot up even faster than short term contracts as rig operators demand a premium for being locked in on a project.

In a low price environment with falling utilization, however, the day rate may plunge much faster than the oil prices as rigs enter low bids on long contracts just to keep busy in a potential slowdown. Due to the volatility and the varying strength of the correlation, investors and traders can flip between seeing day rates as a leading or a lagging indicator for oil prices and the health of the oil and gas industry as a whole.

This article is about the onshore oil rig. For offshore oil rig, see Oil platform. For drilling tunnels, see Tunnel boring machine. For handheld drilling tool, see Drill.

A drilling rig is an integrated system that drills wells, such as oil or water wells, in the earth"s subsurface. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells, or they can be small enough to be moved manually by one person and such are called augers. Drilling rigs can sample subsurface mineral deposits, test rock, soil and groundwater physical properties, and also can be used to install sub-surface fabrications, such as underground utilities, instrumentation, tunnels or wells. Drilling rigs can be mobile equipment mounted on trucks, tracks or trailers, or more permanent land or marine-based structures (such as oil platforms, commonly called "offshore oil rigs" even if they don"t contain a drilling rig). The term "rig" therefore generally refers to the complex equipment that is used to penetrate the surface of the Earth"s crust.

Small to medium-sized drilling rigs are mobile, such as those used in mineral exploration drilling, blast-hole, water wells and environmental investigations. Larger rigs are capable of drilling through thousands of metres of the Earth"s crust, using large "mud pumps" to circulate drilling mud (slurry) through the drill bit and up the casing annulus, for cooling and removing the "cuttings" while a well is drilled. Hoists in the rig can lift hundreds of tons of pipe. Other equipment can force acid or sand into reservoirs to facilitate extraction of the oil or natural gas; and in remote locations there can be permanent living accommodation and catering for crews (which may be more than a hundred). Marine rigs may operate thousands of miles distant from the supply base with infrequent crew rotation or cycle.

Antique drilling rig now on display at Western History Museum in Lingle, Wyoming. It was used to drill many water wells in that area—many of those wells are still in use.

Until internal combustion engines were developed in the late 19th century, the main method for drilling rock was muscle power of man or animal. The technique of oil drilling through percussion or rotary drilling has its origins dating back to the ancient Chinese Han Dynasty in 100 BC, where percussion drilling was used to extract natural gas in the Sichuan province.Edwin Drake to drill Pennsylvania"s first oil well in 1859 using small steam engines to power the drilling process rather than by human muscle.Cable tool drilling was developed in ancient China and was used for drilling brine wells. The salt domes also held natural gas, which some wells produced and which was used for evaporation of the brine.

In the 1970s, outside of the oil and gas industry, roller bits using mud circulation were replaced by the first pneumatic reciprocating piston Reverse Circulation (RC) drills, and became essentially obsolete for most shallow drilling, and are now only used in certain situations where rocks preclude other methods. RC drilling proved much faster and more efficient, and continues to improve with better metallurgy, deriving harder, more durable bits, and compressors delivering higher air pressures at higher volumes, enabling deeper and faster penetration. Diamond drilling has remained essentially unchanged since its inception.

Oil and natural gas drilling rigs are used not only to identify geologic reservoirs, but also used to create holes that allow the extraction of oil or natural gas from those reservoirs. Primarily in onshore oil and gas fields once a well has been drilled, the drilling rig will be moved off of the well and a service rig (a smaller rig) that is purpose-built for completions will be moved on to the well to get the well on line.

Mining drilling rigs are used for two main purposes, exploration drilling which aims to identify the location and quality of a mineral, and production drilling, used in the production-cycle for mining. Drilling rigs used for rock blasting for surface mines vary in size dependent on the size of the hole desired, and is typically classified into smaller pre-split and larger production holes. Underground mining (hard rock) uses a variety of drill rigs dependent on the desired purpose, such as production, bolting, cabling, and tunnelling.

In early oil exploration, drilling rigs were semi-permanent in nature and the derricks were often built on site and left in place after the completion of the well. In more recent times drilling rigs are expensive custom-built machines that can be moved from well to well. Some light duty drilling rigs are like a mobile crane and are more usually used to drill water wells. Larger land rigs must be broken apart into sections and loads to move to a new place, a process which can often take weeks.

Small mobile drilling rigs are also used to drill or bore piles. Rigs can range from 100 short tons (91,000 kg) continuous flight auger (CFA) rigs to small air powered rigs used to drill holes in quarries, etc. These rigs use the same technology and equipment as the oil drilling rigs, just on a smaller scale.

An automated drill rig (ADR) is an automated full-sized walking land-based drill rig that drills long lateral sections in horizontal wells for the oil and gas industry.Athabasca oil sands. According to the "Oil Patch Daily News", "Each rig will generate 50,000 man-hours of work during the construction phase and upon completion, each operating rig will directly and indirectly employ more than 100 workers." Compared to conventional drilling rigs", Ensign, an international oilfield services contractor based in Calgary, Alberta, that makes ADRs claims that they are "safer to operate, have "enhanced controls intelligence," "reduced environmental footprint, quick mobility and advanced communications between field and office."steam assisted gravity drainage (SAGD) applications was mobilized by Deer Creek Energy Limited, a Calgary-based oilsands company.

Baars, D.L.; Watney, W.L.; Steeples, D.W.; Brostuen, E.A (1989). Petroleum; a primer for Kansas (Educational Series, no. 7 ed.). Kansas Geological Survey. p. 40. Archived from the original on 8 November 2020. Retrieved 18 April 2011. After the cementing of the casing has been completed, the drilling rig, equipment, and materials are removed from the drill site. A smaller rig, known as a workover rig or completion rig, is moved over the well bore. The smaller rig is used for the remaining completion operations.

"Ensign Launches Newest And Most Powerful Automated ADR 1500S Pad Drill Rigs In Montney Play", New Tech Magazine, Calgary, Alberta, 21 November 2014, archived from the original on 10 December 2014, retrieved 6 December 2014

What does it take to maintain a successful business? If you said profit, you hit the critical component to any good business. However, if you said the right equipment and team, your thought process drills deeper. I bet the rest of you were shouting, “Customers is what it takes!”

Maintaining a successful business was a top discussion point at the recent Mountain States, Maryland-Delaware, and Virginia groundwater conferences I attended as a presenter. To get a well-rounded perspective on this important topic, I interviewed a driller within our community and a custom home-builder connected to our community.

First up, Charles “Buddy” Sebastian of Sebastian and Sons Well Drilling based in Michigan is a long-time industry friend and president of the Michigan Ground Water Association. Sebastian has presented talks on job costs, company sustainability and the future of drilling companies at the MGWA’s annual conference. He also just presented at the Montana Water Well Drillers Association Convention & Trade Show.

A. The first talk I did on knowing your cost at MGWA, I had a question from the audience that said: “You have your business figured out. What"s your exit plan?” I said, the day you start your business is the day you start planning to sell your business. What I mean is, to be able to sell your business you have to be able to set your market. You can either be the market setter or market followers. You have to be able to set the market that your business is solvent. To be solvent, you have to have enough money in your profit margin to maintain, repair and replace equipment. Then, beyond sustaining the business, you can’t just work for beer and pizza. So you have to have enough profit in there to pay the team and yourself.

A. We are in some dangerous times for new equipment in our industry. Rig manufacturers are for sale for the second time in less than a decade, and the latest trend is to build smaller, less expensive rigs.

A. First of all, we have to stop pricing our product according to our competitor. We fix that by knowing our cost per hour and cost per day for equipment and project. That thinking that my competitor is drilling for $18, so I need to drill for $17 needs to go away. We need to know our costs on the first job and be profitable because it isn’t going to get any better if you don’t.

A. It is based on how many wells you do a year. I figure today’s drilling equipment’s life as 10 to 15 years, and yes, some older conventional rigs had a longer lifecycle. You know I did a cost analysis of some of my older table-drive rigs to replace belts, bearings, bushing and drivelines. What I saw was [that having] bushing and bearing that were relatively cheap to repair was no longer the case. Replacement parts were not built as good as the originals; importing cost had increased and, overall, these parts were becoming obsolete due to American manufacturers no longer making them. Conventional rigs are not as easy or cheap to repair as they were. You have to take into consideration downtime versus complete replacement.

A. OK, how about an $800,000 new rig that is going to be maintained to last 15 years. I use 2,080 working hours in a year, and I take into consideration 15 years of life. That comes out to $25 an hour to operate that rig.

That’s the per-hour cost to own that rig. That’s not interest, maintenance, repairs, tires, mud pumps or wearables. It’s just the cost to own the rig. Next, you have to take into account everything to operate and maintain the rig, including the labor to repair, update and replace. A good number to start with for a new $800,000.00 rig is about $75,000 a year to own and maintain it. The best advice I can give to a new rig owner is to save $25 an hour for every hour of rig operation to replace that rig.

A. The rig payment comes from profit. If you can’t pay the rig out of profit, you are in big trouble. We must make a business that is sustainable that can attract and hire good people and, on top of that, pay ourselves. We must know our costs.

Q. How does the industry value water at a cost that makes the drilling business sustainable? How do we change the stigma that a water well must cost X but even interior amenities such as cupboards can cost so much more?

A. Pricing is consistent throughout our area, so pricing is not outrageous. The drilling companies’ professionalism and expertise exclusively drive my priority when choosing an installer.

A. It is all about location. Location of the well may seem like a no brainer, but choosing a site, particularly on nonconforming lots or lake homes, can be somewhat problematic. Distance from property lines, septic systems and sewage ejection pumps can often become a balancing act. A drilling company willing to work with the footprint I have is invaluable.

A. I have had very positive experiences with the two drilling companies I use. Both are excellent, and overall I had similar experiences. The estimates and proposals aligned, and they both researched well logs on adjacent properties to present reasonable estimated well depths. One thing that makes me use one company over the other is when they go the extra mile to educate my customers on the process and me. I have a backup drilling company just because of schedules.

A. With the significant increase in the cost of wood over the last 10 years paired with the massive jump in labor costs, framing the home is typically the most expensive component of new construction. Other added costs come from the special footing or extensive land improvements/excavation.

A. We build custom homes that meet each client’s specific wants and needs. Not only do we accomplish this but at the same time we build quality homes. Energy-efficient and structurally sound homes are the starting point for our homeowners. These are our core values and a starting point from where we build to create a functional and architecturally pleasing home that exceeds our homeowners’ expectations. Building a home is like entering into a serious relationship with someone you just met. You are going to spend hundreds of hours with them, answer multiple calls a day and then respond to their weekend emails. You have to get along, or you’ll both walk away from the process drained and upset. I have found the best way to get along is to require perfection from my employees and my subs. That’s it. I do not allow mediocrity; my customers know it, and it establishes a basis for trust.

A. The entry barrier has working capital to pay subcontractors and material suppliers between bank draw. I typically need 20-25% of the contract price in liquid assets to fund the project. Then it’s about managing my project and understanding the profit I need to sustain my business, pay my employees and, at the end of the day, I need to provide for my family.

We need customers and builders, and they 100% require the drilling industry to provide water. We have to establish our message of value to our customers. The problem cannot be solved with one company or region that cannot solve our image; it will take the entire community discussing how we make the change together. In the end, we need the same thing our builder requires, to be able to recruit and pay good men and women to progress our industry, buy the right technology to be successful, and provide the consumer with a quality product that they value.