Synergies with Oilfield Rental

RSS

I was most intrigued by a small news story that a lot of people probably didn't notice: Canadian Equipment Rental Fund, or CERF, which owns 4-Way Equipment Rental and a couple of other companies in the booming oil-rich Canadian province of Alberta signed a letter of intent to acquire an oilfield rental company. You can check out the story here: http://rermag.com/trends_analysis/headlinenews/cerf-to-acquire-oilfield-rental-company-082412/index.html. They didn't even name the oilfield rental company, but I was intrigued by the fact that CERF is headed in that direction.

Most of you probably aren't likely to pay much attention to the doings of a small Canadian rental company, but the synergy between a construction equipment rental company and an oilfield equipment rental company strikes me as a natural one. I've actually been expecting something like this to happen for a while now. A lot of rental companies are doing good business in the energy rental market. The oil-sands region in Alberta is obviously a strong market for equipment rental as are the communities near the Bakken, Eagle Ford and Marcellus shales and other energy-producing regions in the U.S. Rentals to refineries, wind farms, pipeline construction, even support projects related to mining, are all strong areas at the moment.

There are oilfield rental specialists that rent a lot of equipment that aren't part of the inventories of most of the equipment rental companies that readers of this magazine are involved with. Names like Stallion, Chesapeake, Great Plains, Quail Tools, Knight Oil Tools, Greene's Energy Group and Gauthier's. There's plenty more of them, large and small. They rent stuff like drill collars, drill pipes, sand separators, blowout preventers, spacer spools, gate valves, frac tanks and frac heads, tubing of all kinds, ditch magnets, bleeder plugs, pipe joints, landing strings, and other items, some of which I've never heard of.

But a lot of those companies also rent earthmoving machines of all kinds, aerial work platforms, forklifts, telehandlers, light towers, generators, welders, air compressors and pumps. I would imagine many of these companies use similar software systems and operate using similar logistics.

As more construction-type equipment rental companies rent to energy markets, I would expect to see more synergies between construction equipment rental companies and oilfield equipment and tool rental companies. I know there are a lot of differences in who the customers are and who the suppliers are. But there might be as many similarities and synergies as differences. The oilfield rental companies are highly specialized and obviously the people who operate them know their markets far better than a company that specializes in construction rental, but it strikes me as an area worth exploring.

Maybe I'm overlooking something obviously fundamental to people who know both industries. Or maybe not? I hope to hear some feedback from readers about this issue.

Discuss this Blog Entry 24

on Mar 25, 2013
on Oct 28, 2013

Its supporters claim that the current certain system for medication does not result in R&D for the illnesses which have the biggest international problems. http://custom-writing-australia.com/

on Dec 15, 2013

“The financial doubt that has succeeded for several decades has actually been a big advantage for the lease market,” Manfredi said. find a driving school

on Jan 8, 2014

One person e-mailed me involved about U. s. Accommodations becoming too big and I outlined what specialist Dan Kaplan said, that U. s. has about 7 % of the market and RSC about 4 %. That contributes up to 11 %, so obviously this market is still very fragmented with enough for independents. invisalign

on Jan 12, 2014

Inevitably some individuals will reduce their roles and I'm certainly not offering that as something to enjoy. The up part is that some independents and small organizations may soon find some very excellent techniques, division supervisors, revenue representatives and others looking for work, so be on the lookout. Oil M&A

on Jan 18, 2014

This is challenging to response because there seems to be one that is requested every perform shop. http://pinebeds.org/

on Feb 7, 2014

Certainly some individuals will reduce their roles and I'm certainly not offering that as something to enjoy. The up part is that some independents and small organizations may soon find some very good techniques, division supervisors, revenue representatives and others looking for work, so be on the lookout. jurassic park builder cheats

on Feb 24, 2014

What we are seeing today is that the original devices cost of the bigger lease organizations are at all-time peaks, time usage is at record levels, costs is strong and income is flowing in. But it is not just that bigger lease organizations are getting business from smaller sized lease organizations because many. bubblegum casting

on Feb 27, 2014

Union natural prohibits stored The Stones and Woolloomooloo from being transformed into a woodlands of high-rise "executive suites"; they stored Glebe from being trifurcated by two major expressways; stored Centennial Recreation area. bubblegum casting legitimate

on Feb 27, 2014

In the interview, Muhith said the bank has always been a government institution, but that under Dr Yunus it had expanded without regulation into other sectors. It was time for its role to be redefined, he said. free ps4

on Mar 19, 2014

Dr Yunus it had expanded without regulation into other sectors. It was time for its role to be redefined, he said. Friv Juegos

on Mar 19, 2014

Dr Yunus it had expanded without regulation into other sectors. It was time for its role to be redefined, he said. Friv Juegos

on Mar 22, 2014

Next you might have to read a book or play outdoors. And now you have a busted Imaginotron.

on Mar 26, 2014

Smith brandishes a pocket knife, bends down and proceeds to carve out a chunk of the “root,” which smells like rubber and bends like rubber. accountant london

on Mar 27, 2014

I tag it to my favorite’s internet site list and will be checking back soon. Please check out my web site also and let me know what you think about Tao of Badass Review. dating guide

on Mar 27, 2014

Thanks for taking this opportunity to discuss this; I appreciate with this and if you have some more information please share it with me about Tao of Badass Review.

on Mar 29, 2014

As horse-drawn road carts moving on tracks provided way to the electrified cart vehicles in 1892, it has stayed an empowered place. Phlebotomy training

on Apr 3, 2014

They rent stuff like drill collars, drill pipes, sand separators, blowout preventers, spacer spools, gate valves, frac tanks and frac heads, tubing of all kinds, ditch magnets, bleeder plugs, pipe joints, landing strings, and other items, some of which I've never heard of. Nike Backpacks - 3 Advantages Pertaining To Different Varieties | Your Backpack Authority

on Apr 4, 2014

Dr Muhammad Yunus was removed from his position in GB on March 2 by a notice of the central bank. On March 3, Dr Yunus filed a writ petition against the decision of the central bank. Videos Porno Gratis

on Apr 6, 2014

Es bueno dejar claro que según el cronista además hubo dicha con la promesa de la orquesta y sus polkitas: los comerciantes celebraron la excelente venta de flores. Temple Run online

on Apr 6, 2014

I am starting to believe that the more a macro economic signal indicates a reducing in the recovery, the better it is for the lease organizations. friv 2

on Apr 8, 2014

I am starting to believe that the more a macro economic signal indicates a reducing in the recovery, the better it is for the lease organizations. http://www.juxpur.de

on Apr 13, 2014

advancing by Primary Rights ABM Khairul Haque, noticeable the judgment in the mornig after finishing comprehensive proceedings on the twin- applications registered by himself and nine administrators of the micro-credit organization he had established nearly four years ago. http://www.love2drive.co

on Apr 17, 2014

Excellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking.
URL Opener

Please or Register to post comments.

What's Rent Talk?

Rent Talk is the premier blog of Rental Equipment Register Magazine

Contributors

Michael Roth

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a...

Brandey Smith

Brandey Chewning Smith joined RER magazine in 2001 as managing editor. Since then she has written thousands of articles covering the rental equipment industry, and its people, products, events and...
Blog Archive
Rental Equipment Register Related Sites

Sponsored Introduction Continue on to (or wait seconds) ×