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RigER Mobile innovates Oilfield Rentals

New mobile apps connecting oilfield and office and allows to manage service and rentals anytime, anywhere!

 

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CALGARY, AB – February 29, 2016 – BelcaSoft is presenting first release of iOS and Android Mobile Applications and new version of innovative oilfield rental operations management software.

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KPI for Oilfield Rentals

Oilfield PULSE (December 2015 Issue) published article by Michael Maltsev, BelcaSoft CEO about Oilfield Rentals KPI.

Oilfield_PULSE

KPI for Oilfield Rentals

What Oilfield Rental Companies Must Control

Over the past 10 years, Oil and Gas industry has been transform by unconventional drilling. Horizontal drilling and fracking had produced tremendous new reserves. This made a groundwork for productivity transformation, where digital technologies help companies re-imagine their business processes to drive increase efficiency.

Big data, digital oilfield, cyber security, advanced analytics and business intelligence become very important for producers and service companies. The oilfield rental companies have to become more efficient in operations too, they can’t just spray and pray.

The poor service and rental companies are being hammered. They are getting beat up by all of their customers to lower their prices, to do more for less, and get things done quicker. Once again, operational excellence is the key for them to accomplish all of that and still maintain profitability.

We consider that oilfield rentals should have digital platform to utilize benefits of innovative technologies. Our product RigER – Oilfield Rental Software helps energy service and equipment rentals companies increase operation performance.

The Canadian Association of Oilwell Drilling Contractors (CAODC) expects low drilling season with low oil prices and low drilling and investing activity. CAODC predicts this trend to continue throughout all four quarters in 2016, with drilling rigs utilization levels averaging around 22% for the year. CAODC projects the number of wells drilled in 2016 at 4,728.

In this circumstance role of management decisions quality are growing. Oilfield rental companies have invested time and capital to build cutting-edge fleet and want to make sure it is performing to the best of its ability. Due to the importance of managing this asset, very quickly the question is asked “Which numbers can I look at to manage and control my rental fleet?”

 

 

Key Performance Indicators for Oilfield Rentals

There are 6 equipment rental Key Performance Indicators (KPI). Using analysis of revenue and other factors, they measure efficiency of fleet use, business activity and fleet turnover.

Acquisition Cost (AC)

AC measures the size of a rental fleet expressed in a base currency. Consistent with the concept of gross book value, it represents the undepreciated cost of acquiring a piece of equipment.

  • For assets bought off lease, AC represents the cost paid to buy-out the lease
  • AC includes the cost of any refurbishments that can be capitalized

 

Time (Physical) Utilization (TU):

This seems to be controversial in the rental industry and there are several ways to do it correctly. You should remember no matter how you choose to calculate it make sure you do it consistently and have strong benchmarks for how you choose to do it.

We calculate it as:

(Deployed Days) / (Days in A Fleet) = Time Utilization Percentage

Example:

18 / 30 = 60%


Financial Utilization (FU):

FU is a function of annualized rental revenue exclusive of ancillary fees weighted by AC.

  • FU is calculated by dividing ‘pure’ rental revenue by average AC
  • ‘Pure’ rental revenue excludes ancillary fees such as environmental fees, damage waivers, delivery charges and re-rent revenue

We calculate it as:

(Rental Revenue) / (Acquisition cost) = Financial Utilization Percentage

Example:

$98,000.00 / $100,000.00 = 98%

 

The advantage to using this KPI is that it cannot be overly affected by outside influences. Typically, the original cost of the asset and the total revenue collected in a specific time period are easily determined. This allows very different types of equipment to be compared to each other.

 

Fleet Age (Age):

Age is the fleet weighted average age (expressed in months) of the equipment in the fleet.

  • In-service date is used to calculate fleet age
  • No adjustments for refurbishments


Change in Rental Rate %RR:

The period-over-period change in rental rates measures the change in average contract rental rates. Rates vary depending on contract type (daily, weekly or monthly), discounts and the equipment rented.

  • When reporting period-over-period rental rate changes, rental companies are measuring the average change in contract rental rates weighted by the prior period revenue mix

 

The most important KPIs in this list are Time Utilization and Financial Utilization. They should be study at as a pair. If we look at just one of them, it would be easy to miss obvious trends and issues. Keep in mind that what Acquisition Cost for equipment is a huge factor in the overall equation. Some typically low Financial Utilization items, such as specialty heavy equipment, are very expensive.

In RigER we build management report Rental Units Utilization, where presenting utilization by whole fleet, by each location, by different equipment types, by any possible division of your fleet, and all the way down to the individual serial numbers. By looking at the report, you can quickly see how your fleet is performing.

KPI implementation to day-to-day operations will help increase rental fleet performance and allow oilfield rental companies stay successful in downturn.

Have a Great Drilling Season!

By Michael Maltsev, MBA
BelcaSoft, CEO

Posted in Corporate, Oilfield Rentals


What Oilfield Rental Companies Should Consider Now

Oilfield PULSE (October 2015 Issue) published arcticle by Michael Maltsev, BelcaSoft CEO about Improving Oilfield Rental Operations.

Oilfield_PULSE

7 Ways to Boost Oilfield Rentals
What Oilfield Rental Companies Should Consider Now

Oilfield rental companies across Western Canada and USA faced with low commodity prices and low operational activity. Experienced business owners and managers know the importance of adapting quickly and act strategically.

Successful oilfield rental companies get through downturn with clear focus on two tasks: optimize financials and prepare to next phase of market cycle. First task includes cutting costs and credit checks, second – innovative products, scalable solutions, workflows improvements.

Acknowledge that downturn will correct the numbers, but it will not correct the entire trend. Rental segment of oilfield service will grow next years. We will see market consolidation and restructuration. M&A activity is growing now.

Doing nothing and waiting for recovery simply is not an option. Oilfield service business requires proactive steps to make rental operations stronger: penetrate the market by new products, research advanced technologies, develop relationships with clients, hire talents and build effective team!

 

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Today is the Best Time to Act!

The rapid development of ICT and automation technologies brings an increasing number of automatic applications to the oilfield. Successful oilfield rental companies have a good tradition of utilizing disruptive technologies to improve operations efficiency.

It is the best time now to implement oilfield rental software like RigER (www.riger.ca). Industry downturn and low season activity bring ideal conditions for software implementation. People have time to learn and implement new technology.

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Invoice Immediately

Accurate and efficient invoicing system is important for oilfield rental business. Rental days counting could be very challenging when you have significant number of rental units constantly moving. Rental and service companies using paper based system or MS Excel spreadsheet to track rental equipment usually spend 10 to 30 days to prepare and send invoice to the client.

An efficient invoicing process is essential to maintaining a healthy cash flow. Smart invoicing can significantly shorten the time between when you complete field project and when you get paid for it. It can also reduce the time spent sending invoices and handling payments. No matter what your current invoice process is, you can take steps to help improve both timely payments and customer relations.

 

Include all necessary details (LSD, PO#, job #, AFE, etc.) on your invoices while still maintaining clarity and readability. Include your contact information, as well as that of your client, and a tracking number. List out the products or services as clearly as possible, along with unit prices, quantities, taxes, applicable discounts, and the final amount you are looking to collect. The easier it is for your client to understand your invoice, the more likely you are to get paid quicker.

 

Organize Critical Data

To help you increase your chances of being paid on time, it is important to know who your customers are. Oilfield Rental Software lets you organize your customers’ details from their contact details, to their rental and service history, to their invoicing and payment history. Think about your operational CRM (Customer Relationship Management). Does it categorize clients, locations, and contact information? Does it structure critical business data, including equipment and serial numbers, prices and discounts, quotes and rental agreements, etc.?

 

Improve Rental Fleet Utilization

Rental Units Utilisation is one of KPI (Key Performance Indicators) for rental business. Run utilization report to analyse rental fleet time and dollar utilization. Dollar utilization is an annual or annualized rental income divided by original fleet cost. At downturn, oilfield rental companies struggle with dollar utilization rates from the low 15 percent range to the mid 40 percent range. The reason is obvious. The demand is down, supply is up and rates are low. Of course, lower drilling activity and lower rates have had a tremendous effect on driving utilization down. However, doing regular utilization analysis by equipment type, locations, customers, etc. can help effectively manage rental fleet. On the other hand, low assets acquisition cost gives an opportunity to update rental fleet and improve fleet structure.

 

Protect Assets

Lack of tracking damaged, or missing equipment can have a significant effect to a rental business. Track your equipment’s every move. Investing in GPS technology is probably the most effective way to protect assets and collect
data. The system tracks rental units automatically with no human input, so accuracy is very high. However, there are two things to watch out for. First, it can be an expensive investment. Second, it can require integration with your existing systems. Overall, GPS is a great solution for your big and expensive equipment.

 

Schedule Efficiently

Dispatching field service and rentals requires an advanced schedule solution. Managers need to track work orders throughout the day and update all information in real time. Field technicians should track their own schedules throughout the day, week, and month. Scheduling for rental units preventive maintenance can help extend equipment life. This automated system can also track recalls, service campaigns, and pending operations as part of the
vehicle’s service history. Thanks to the increased visibility into what’s happening with your assets, you’ll be able to bundle service events together and reduce the number needed between preventive maintenance appointments. Fewer service appointments means more time hauling freight and a higher asset utilization percentage.

 

Analyze Performance

With the current commodity prices, oilfield service and rental companies are seeking out new ways to increase efficiency and trim costs. Software, specifically in the field service and rental automation, is proving to be a great method for getting data quicker, streamlining rental operations, securely sharing data, eliminating waste, creating customized data forms, reporting information, and integrating with back-office systems. Integrate planning and analytics processes across your company to help get the performance insights you need to reduce operational losses and optimize asset utilization.

 

Build One Transparent System

A transparent management system allows business owners and managers to run their business remotely and understand who does what at any given moment. This can help your dispatchers manage rental operations and field
services easily, efficiently, and accurately.

 

Boost Oilfield Rentals!

Have a Great Drilling Season!

By Michael Maltsev, MBA
BelcaSoft, CEO

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7 Ways to Boost Oilfield Rentals

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Posted in Corporate, Oilfield Rentals


BelcaSoft and RigER at the Global Petroleum Show

We would like to share good news about RigER and provide you free exhibition pass for GPS-2015 (value $125).

BelcaSoft will present RigER at the Global Petroleum Show Doghouse second year in a row.

This year we will take part in the 2015 Doghouse Pitch Competition.

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Posted in Corporate, Products, RigER


Oilfiled Dispatching – RigER Version 2.2

BelcaSoft is pleased to introduce RigER Version 2.2 – Oilfiled Dispatching. RigER becomes better and better each day. This new release is focusing on dispatching of oilfield service and rentals. Dispatching oilfield 24/7 is very stressful and challenging job. RigER Version 2.2 makes oilfield dispatching simple and convenient.

 

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Release Date: May 31, 2015. Release Focus: Easy Dispatching!

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Posted in Corporate, Oilfield Rentals, Products, RigER, Software


RigER in Calgary Herald

RigER was featured in Calgary Herald as Startup of the Week. Michael Maltsev told about our product idea, first steps and RigER current focus.

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Calgary Herald
May 15, 2014

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Posted in Corporate, Products, RigER, Software


Strategic Partnership Announced: BelcaSoft and First BIT Canada

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Calgary, AB and Toronto, ON (May 1, 2014) – BelcaSoft, a Calgary-based software development and management consulting company is proud to announce strategic partnership with First BIT Canada, a Toronto-based ERP and IT systems solutions provider specializing in automated solutions for businesses.

The direct connection between BelcaSoft and First BIT Canada allows companies to optimize resources, speed-up products development, and expand geographically. Partners will closely develop joint products: DispatchMAX and RigER.

DispatchMax has been developed by First BIT Canada around a comprehensive, centralized database which works to streamline business workflow and guide users through all the functions that are required for the operation of any trucking and fleet management business in a more accurate and profitable way.

RigER – Rig Equipment Rentals is oilfield rental operations management software designed for Oil and Gas industry. This specific application allows controlling entire oil patch operations: from client service request and service schedule via field tickets to final service invoice. The product designed by BelcaSoft for small and medium size energy servicing companies. RigER focuses on oil & gas equipment rentals but it tracks service jobs as well.

“At the core of our business model are the principles of trust and honesty and ‘Win-Win’ relationships. We believe that this strategic partnership will help our companies achieve their goals through mutual collaboration,” said Michael Maltsev, CEO at BelcaSoft.

Eugene Konstantynov, VP at First BIT Canada, comments: “We are proud to have joined in partnership with BelcaSoft because we see great opportunities for our products in Western Canada.”

 

 

About BelcaSoft

BelcaSoft is a Calgary-based software development and management consulting company. BelcaSoft is focused on custom software solutions for energy, manufacturing and construction industries. BelcaSoft has the industry experience, tools, and tailored software solutions to help companies streamline their business operations and accelerate their growth.

 

About First BIT Canada

First BIT Canada is a consulting provider specialized in end-to-end Business Management Solutions from Enterprise Resources Planning (ERP), Customer Relationship Management (CRM) and Human Resource Management (HRM) to IT Outsourcing including Infrastructure Management and Network Administration services. First BIT Canada helps customers focus on their strengths by providing proper tools to meet their needs. Globally First BIT is made up of a team of 4,500 professionals developing and implementing business automation solutions in 60 offices around the world.

 

Posted in Corporate, Partnership


RigER website – www.riger.ca

Calgary, AB – BelcaSoft is proud to announce RigER website launch.

Product new website was launching today. Please check and learn more about our product – http://www.riger.ca/

Logo Presentation 2

Any feed back will be highly appreciated.

 

About RigER

RigER – Rig Equipment Rentals – oilfield rental operations management software designed for Oil and Gas industry. This specific application allows control entire oil patch operations: from client service request and service schedule via field tickets to final service invoice. RigER was designed for small and medium size energy servicing companies. RigER focuses on oil & gas equipment rentals but it tracks service jobs as well. It includes all features of oil patch service (Rig, LSD, Down-hole location, Well, etc.).

Posted in Corporate, Products, RigER, Software


Save up to 35% on RigER – operation management software now more affordable

The offer expires on May 10th 2014.

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Act now on this time-limited offer!

Growing your energy servicing business takes more than just hard work. You need deep insights, complete control over your finances, and the ability to streamline processes and reduce costs. You need to delight customers every day. Without failure.

There is no better time to buy

RigER is operation management software designed by BelcaSoft for oilfield services industry. It is easy to use, quick to implement, and has the power to meet your needs today and as your business grows.

It is available for deployment in the cloud, or on premises.

For a limited time, BelcaSoft is making special pricing available to new customers. You may be able to license RigER with five and ten users for up to 35% off the license price.

Why wait?

Now is the time to take control of your finances, prepared to new drilling season, gain new insights into your data, set up service management, and manage your inventory more efficiently.

Contact us today to learn more about the offer and how RigER can help your business grow. But hurry because the special pricing expires on May 10, 2014.

How do I get started?

Review the Terms. Save up to 35% on RigER. Contact us.

Terms: From April 1 to May 10, 2014, you may be eligible to license your first five or ten RigER users at up to 35% off the license price. This special pricing is only available for new RigER customers and cannot be combined with any other discounts. The promotional price applies to a RigER license with five or ten full users. Please contact BelcaSoft for a full list of eligibility requirements, conditions, and pricing.

Buy Now!

 

Posted in Corporate, Products, RigER, Software


BelcaSoft video presentation

BelcaSoft would like to present our  YouTube channel and Google+ Page. Please subscribe and stay connected to see our videos and updates.

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Posted in Corporate, Video