Across Western Canada’s oilfields, a common challenge persists: the majority of energy companies don’t know what surplus equipment they have, what it’s worth, or how to efficiently sort it for sale or reuse.
We’re coming out of a period where all focus was on new projects with little time for inventory and equipment cleanup. Now, with low gas prices projects are getting shut in, and with acquisitions continuing, assets are getting divested – all of which is putting a spotlight on surplus.
“Before any engineer partner or our own engineers are allowed to buy new they are obligated to look at a list of our already owned surplus. Our company is looking to offset costs and best reuse our inventory.” Senior Supply Chain Specialist
As companies try to shift towards better use of equipment and materials stockpiled, they are confronting a common challenge: how can we get a clear picture of what we own?
There is an estimated $10.2 billion in book value in equipment and materials that sits unused across Canada’s oilfields. Historically, oil and gas businesses have operated without certainty of what equipment already exists, in what condition and where.
