Oilfield Equipment: Renting vs Purchasing

The rental market for oilfield equipment has recently expanded dramatically. This is because oil drilling is booming, and the United States is a major product consumer. As our country strives to become more self-sufficient in oil consumption, the demand for domestic oil drilling will grow.

If you work in the oil industry, you are probably aware of how much oil equipment can cost. Pumps, trucks, mixers, and other assets are extremely expensive, so Oilfield Tools Rentals are the best option for your business.

Renting vs Purchasing

You will be making a significant decision when deciding whether to rent or buy your oilfield equipment. Oilfield Tools is usually the most expensive investment your company can make, and this is why you must determine what will be most beneficial to you. Both options have numerous advantages, but renting is always less expensive than purchasing.

Disadvantages to Purchasing

• Very large financial investment.
• Price increases if you want to use the latest models.
• You will be responsible for all maintenance and repairs rather than have a rental company take care of them.

Advantages to Purchasing

• You own it.
• It becomes an asset.
• You have the equipment whenever you need it.
• You can get a return on your investment by selling it.

Disadvantages to Renting

• After using equipment for a long time, you will have put in a lot of money with no equity.
• You may not be able to use a piece of equipment if it is already being used.
• Advantages to Renting
• It costs much less than purchasing equipment.
• Renting allows you to have the latest and most updated models available.
• It makes you dependable for completing jobs quickly and efficiently.
• You do not need to provide any maintenance
• The rental provider will pay for all maintenance, saving you money on unplanned expenses.
• Rental providers can deliver the equipment you need to the worksite where you will use it.

Factors to Consider

When looking for new equipment, you must decide whether to buy or rent regardless of the industry you work in. Many factors must be considered when making this decision, but cost-effectiveness and maintenance are most important.

Cost-Effectiveness

Will the equipment be worth it in a few years? Will it be deemed obsolete? Because oilfield equipment is extremely expensive, you may not be able to afford it, rather than incurring debt to secure the equipment. If you're thinking about buying instead of renting, talk to a financial advisor first.

Maintenance

Essentially, when it comes to maintenance, you will have two options: pay for it or do it yourself. The ability to repair your equipment is critical to its success, and this means that if you buy your equipment, you may need to have an in-house repair team to afford it. This will be costly, but it is almost always necessary when owning oilfield equipment.

However, if you are looking for an oilfield supply, DrillingParts is a great place to start.