Questions about Drilling

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During the recent market downturn, many drill rigs had been sitting idle, which made it easier to cannibalize components and parts to keep actively drilling rigs running. Most drillers were repairing the rigs they had to keep them drilling without investing capital in new drill rigs and technology. Now that the market is slowly increasing, many drilling contractors are making decisions on their fleet as to whether they should rebuild the idle rigs or buy new rigs.

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Operations managers know which components (engines, valves, assemblies, etc.) need to be replaced and they typically have a fairly accurate idea of the cost to rebuild idol drill rigs in the fleet. If the rebuilding costs are close to what it would cost to buy a new drill rig, they may choose to do a full-blown audit, inspecting each of the drill rigs, evaluating spare parts in stock, and checking maintenance records for a more accurate comparison of the costs to get a drill rig ready to work again.

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