Supply chain management in the oil and gas sector has an interesting grassroots history since the gusher at Leduc #1 nearly 70 years ago. Not that much has changed by and large. It would appear the modus operandi those wildcatter’s set back in the day is deep rooted in the lexicon of those who run the drilling and completions operations in the patch today. Those tried and true ‘old boys network’ habits harken back to the halcyon days of winging it with the guys you trusted and would call at a moments notice to rip out to a well site and get’r done. Those arrangements and details were relayed via constant phone calls and often scratched out on the back of a napkin from the breakfast spot or libation detachment of choice after a long day of grinding.

It’s worked for many years, right??
Is it really working?
How can you tell?

Industry statistics tell us most projects come in over budget for a myriad of reasons of course, but supply issues leading to expanded AFE allocations are as legendary as those early wildcatter’s. Why?

When we meet with operating companies about how they manage their supply chain, we get a wide-ranging response about how the process works from company to company. We hear every thing from sophisticated enterprise management platforms to, “I send out an email to my Rolodex of service companies I have used

for many years and have a great relationship with, for each well we drill,” are being used depending on the size of the company. But, the interesting thing is all companies, from micro juniors to majors, have told us they are having issues and need help getting things more organized, verifiable, and audit proof.

At Oilfield HUB, we believe there is hidden money to be realized in the process of selecting the right vendor for the right job at the best possible price. How you ask? By tightening up the way you source, bid, and select a vendor then rate them according to their performance on the project they were chosen to work on. If you can track your performance metrics and understand trends, you can perform more efficiently in the long run.