It happened again. I went into work yesterday morning and the next thing I knew, I was coming in from the field this afternoon. Why oh why did that rig hand have to drop a wrench in the hole? That certainly slowed down the drilling on the last 150 feet of that surface hole. That's a process that should have only taken two to three hours, but instead took closer to 18 hours.
Our ticket (what we charge the customer) was originally about 50% products and 50% services. Products are things like cement and chemicals (and single use equipment like wiper plugs). Services are typically charges for equipment, transportation, mileage, time and that sort of stuff. To have us sit on location all evening (and night and the next morning) doesn't add a single cent to the product charges. Overtime is all service related charges. By the time we were done, that 50/50 split between products and services was 22/78. That's a lot of overtime.
2 comments:
Between 50/50 and 22/78, which one generates a better return for SLB? If I understand this Blog correctly, the 50/50 might give a better return if SLB charges a handsome mark-up cost of products. Since this production has very little product cost involved, the rate of profit from the product cost is small for an 18 hours job because the only extra charges is to cover overtime pay which may or may not be profitable, confused?
If one thinks about how much profit the gas & oil industry made in 2005, and another potential big pay day that will exceed last year for 2006, the overtime charges is peanut. Think Exxon and it's CEO's pay!
Did you ever catch up with your sleep from the previous job?
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