Where Do You Fit In The Oil & Gas Supply Chain?
Where do you fit in the oil and gas supply chain? On the rig? On the road? Or on the way home? That is a question that is being asked by many businesses in Stark County as well as all over Ohio. Thankfully there is an answer. This week at the Stark County Oil and Gas Partnership‘s “Choose Stark” event in Massillon, more than 60 businesses and organizations were represented and people received valuable information on how they can start working in the industry. The audience listened to representatives from both Shale Directories and Rettew to get an understanding of Ohio’s shale development and also what is expected of them if they choose to pursue work.
Shale Directories created a quick reference guide to help those who have never worked in or for the industry understand where their business products and services will be needed.
At the very top are the exploration companies. Those are the companies that everyone has heard of, Chesapeake, Hess, BP, PDC and others. They lease land from mineral owners for development.
Second come the drillers. These companies work for the exploration companies and they are Nabors, Patterson, Union and Nomac. They set up and run the rigs that put the pipe into the ground.
After that comes the production companies. They are Halliburton, Weatherford and Keane. These folks use hydraulic fracturing to break open the shale so that the oil and gas can flow back to the surface.
Then the industry services companies come into play. Some are Great Plains, Schlumberger and Allmon Services. These companies own and run much of the equipment on the well pad sites.
The next step is where the local companies are most needed. They service the well pad sites with excavating, water hauling, casing and landscaping. All of those services require an MSA. A MSA is a master service agreement. That is an agreement with the exploration companies.
Then the supply companies get a bite at the apple. These are also going to be local folks who sell safety clothing, equipment, fuel, hardware, cleaning and other various supplies.
Lastly, the personal services come into play. These local companies provide lodging, food, cleaning, laundry, housing, entertainment and healthcare.
It is up to each company to think about where they fit based on the services they provide within the oil and gas supply chain as there are so many options and energy companies that require a wide range of services. Companies have to think long term as they themselves consider upgrades, investment and growth. Today’s shale play is just starting so there is much more work to be done.