Steve Walker
Managing Director
Loadcraft
/
Insight

Remaining Competitive in a Low Oil Price Environment

Wed, 01/20/2016 - 11:18

Terry Mclver, now the owner of Loadcraft, took a leap of faith one day when he went to purchase a rig at a repossession facility and decided to buy the entire facility instead. From there, he then brought in two of his sons, and his son-in-law, to work with the employees from the previous company that went bankrupt, and built Loadcraft from scratch. “His main mantra has always been ‘take care of your people’, and that is something he has done well,” explains Steve Walker, the firm’s Managing Director. Thanks to word-of-mouth and continuous marketing of the company’s abilities, Loadcraft was able to sell a record 270 rigs in its ten years of experience. “At the moment we are operating in 22 countries, with a little over 270 rigs, 111 of which are located in Latin America. Since 2005, we have had 27 rigs in Mexico for workover and drilling,” Walker discloses. The domestic to international distribution ratio of Loadcraft’s rigs varies each year, although the past few have been difficult from the standpoint of the price of oil. “We have had to reduce our human capital due to the low oil prices, but when operating at full capacity, we can have over 300 employees,” he continues. Loadcraft’s employees are divided among the company’s two plants, one of which is a manufacturing plant under API 4F, and the other that manufactures draw works and operates under API 7F. The company prides itself on these certifications, which are primordial to its operations given the requirements of many of its customers, including PEMEX.

“Our presence in Mexico is very much concentrated according to our clients’ needs, and at the moment, we are focused on the southern region. In addition to the Mexican NOC, our clients include CP Latina, IHSA, Key Energy, Petroalfa, San Antonio, Setin, and Weatherford,” Walker states. At the moment, the company’s main aim is to make contact with companies in Mexico, which makes R1-L03 extremely attractive for Loadcraft. Overall, Walker believes that Round One will contribute to an increase in the demand for the company’s rigs. “We believe companies will get in touch with us given our precedent for exceeding client expectations when it comes to quality and service, which we provide 24/7,” Walker clarifies. “We have found that 99% of the time, when a client buys a rig from us, he or she will return.” In order to remain competitive in the current low oil prices, Loadcraft is offering its clients the opportunity to purchase second-hand rigs, and if need be, to refurbish them, bringing them up to today’s standards. Nonetheless, this does not distract the company from more demanding clients who may require rigs made on demand. “PEMEX prefers the latest in draw-works, which include discs and design services. So far, we have designed and produced four of those rigs for the Mexican NOC,” Walker explains.

Walker claims Loadcraft’s rigs seldom experience problems, but should a client require any assistance, the company has a local partner that can respond to service needs. Loadcraft’s Brady plant can also provide additional assistance when needed, as its technicians are able to travel to any location in Mexico as required. Walker relishes the new importance that Mexico has gained in the international hydrocarbons industry, given its proximity to Loadcraft’s manufacturing facility. “Looking into the future, it is important to meet with new clients in Mexico, since many new companies will be entering the Mexican oil and gas market as a result of the Energy Reform and Round One. We will also strive to maintain our relationship with our existing clients, while keeping an eye open for new opportunities,” Walker asserts. In fact, the company is currently in touch with its clients right in order to better understand how it can support them during these challenging times. Loadcraft’s main goal for the next few years will be to place as many rigs as possible locally to support the development of the newly open Mexican market. The company’s goal is to almost double the amount of rigs it has in Mexico, going from 27 to 54.