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?
The lost opportunity of surplus equipment
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.
Why do so many energy companies lack visibility of surplus management equipment? The bulk of companies’ asset management has focused on buying for new projects. Teams lack the tools, resources and time to take a proper inventory or catalog equipment with the proper documentation to help project engineers evaluate what’s owned for reuse, or for finance to assess value.
“We had a plant and field closure. The supply chain team had eyes on it and realized there were a lot of materials and equipment we could sell, but we needed someone to go to site and take stock, assess value, get it to market and support delivery – tricky because remote location and no staff to assist.” – Director, Supply Chain
Plus energy companies aren’t in the business of selling surplus equipment. They don’t have access to ready markets and time-strapped teams don’t need the extra headache of handling inquiries or coordinating logistics at sale.
So what happens? Valuable equipment remains unused while potential returns go unrealized.
Who’s capitalizing on surplus equipment benefits?
Economics and pressure for operating efficiency are always shifting. Why are companies like the ones below investing in materials management today?
Industry-ready surplus equipment help
While some energy companies have surplus management handled, many don’t have asset management people or processes in place. Neck-deep in a reclamation project, and assessing what to keep, reuse or sell – that’s a moment to consider options.
“Tracking equipment at remote locations is a significant challenge. You need a partner who can help – one who can be local, who knows equipment, knows company operations including safety requirements, and knows buyers. Face that you don’t have manpower, process or knowledge to do this yourself.” – Manager, Warehouse – Project Operations
Companies like Cenovus Energy, Petronas, Paramount Resources, and Suncor (to name a few) have chosen IronHub as a partner to get full visibility into their equipment inventory and gain guidance on what to keep, sell or discard to make efficient use of capital, storage space and support timely projects starts.
How an oil and gas surplus management partner can help
IronHub’s technology and dedicated service team helps Supply Chain and Engineering leaders to ensure reusable equipment reaches internal project teams and surplus inventory gets into the hands of qualified buyers. The IronHub Platform works as a self-serve solution or it can be paired with service assistance from IronHub’s team.
Inventory audit and cataloging – Identify which equipment and materials have reuse or sale value, then develop complete, accurate listings of equipment with specs, photos and documentation that internal engineers or external buyers require.
Internal equipment marketplace supports reuse – In an industry biased to buying new, marketing equipment for reuse requires an easy to access internal marketplace – with listings easy to see and share, just as detailed as a new equipment sales sheet.
FMV value assessment – Once you get visibility on surplus owned, finance teams likely want to know the value. Ironhub does fair market value assessments to support strategic financial decisions including write downs and liquidations.
External marketplace, buyer vetting streamlines sales – Listings of for-sale equipment on IronHub reaches thousands of qualified buyers across multiple global marketplaces and integrated partners. Ironhub vets buyers, coordinates delivery and still there’s full transparency on the sale price and your profit on the sale. We simply support the transaction and logistics.
“Ironhub’s value to us is immense. Cataloging equipment is fast. Market reach to buyers is broad. They keep our distraction to a minimum, fielding tire kickers to bring us only qualified buyers. Above all, they are transparent, sharing what items are sold for to deliver the strongest possible capital recovery for us.” – Manager, Asset Recovery & Logistics
Here to assist your surplus equipment needs
Whether you need help cataloging what you have, selling what you don’t need, or reusing what you own, let us prove our value in a project that’s burdening your team. Pick one operation location to start with and let us show how we can help.
We have a great track record of covering our costs with an equipment sale in the first 90 days of working with us.
Contact our team at sales@theironhub.com or visit theironhub.com.