Midstream Projects Save Money on Used Oil and Gas Equipment | Energy Boneyard

Jun 02, 2016 admin 0 comments
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How Midstream Projects Can Save Money on UsedEquipment

Most natural gas in North America goes through processes before it actually reaches the end users. The midstream industry acts as a link between the production process and meeting the energy needs of consumers. This sector refers to those establishments that are involved in the transportation, storage and wholesale marketing of crude or refined petroleum products.

While end consumers are benefiting from the plummeting oil prices, it becomes important for industry members too, to find ways to reap the benefits from the laws of supply and demand and simultaneously mitigate risks of fluctuating prices.

Saving Big on your Equipment

As a midstream company who is less effected by the cyclical swings in the commodity sector, the plummeting oil prices open doors to newer opportunities in investing in high quality used equipment. Used equipment in the form of flow valves, ball valves, control valves, check valves, threading machinery, bending machinery and air dryers cost a lot less when you buy them from the second hand market.

With the lowering fuel rates, equipment used to prepare the ground and drilling rigs all over the US may be lying dormant. Midstream companies in the need for these equipment can now take charge and secure excellent quality used equipment at favourable rates.

Why is Now the Right Time to Invest in Inventory?

A downturn in the Oil and Gas sector enables companies to secure a more diversified inventory, often a stockpile of extremely affordable oilfield equipment. These savings in turn can be passed on to saving energy companies money. Experts believe that it is only a matter of time before the fuel prices go back to what it used to be. Then, companies will be forced to pay heavier prices on used oilfield equipment that they will be able to afford.

Rebalancing the supply in relation to the demand may take as long as a year. For now, this is the ideal time to make inventory investments and bask in the savings.

Fighting Budget Constraints by Buying at the RightTime

In the Oil and Gas sector, you are in constant need of constant equipment. Whether you are looking for holding tanks, water tanks or pipes, exploring the used oilfield equipment market is worth a shot. Most companies tend to run against tight budgets, making this the perfect time to save on your inventory purchases and freeing up monies for more pressing expenses.

Finding the Lowest Possible Price

Once you have determined of the equipment that you need, you want to make sure that you find your inventory at the lowest possible price, capitalizing on reduced rates. Most purchase managers will realize that there is no reason to invest in new equipment for various types of work. Specifically, if you expect to use this equipment only temporarily or if it is bound to deteriorate as soon as the job is complete.


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