Support equipment:
New vs. Used: The Big Decision
Buy New If: You're starting a new operation, you don't have a mechanic on staff, you need a warranty, or you want the latest technology. New equipment comes with factory support, and you know exactly what you're getting. But it's expensive, and you lose 20-30% the second you take delivery.
Buy Used If: You have experience with this equipment, you have a good mechanic, you're on a tight budget, or you just need equipment that works. Used acidizing and fracturing equipment can be 40-60% cheaper than new. But you have to do your homework. Bring an experienced operator or a mechanic with you to inspect any used equipment before you buy.
What to Look For When Buying Used
When you're looking at used acidizing or fracturing equipment, check these things:
- Pump condition: How many hours on the pump? Are the plungers, valves, and fluid ends worn? The pump is the heart of the unit, and it's the most expensive part to rebuild.
- Corrosion damage: For acidizing equipment, check for corrosion. Acid is corrosive, and if the equipment hasn't been properly maintained, there could be hidden corrosion damage.
- Engine hours: How many hours on the diesel engine? Engines are expensive to overhaul.
- Tank condition: Are the tanks rusty? Are the linings intact? For acid tanks, the lining is critical.
- Control system: Does the control panel work? Are the gauges accurate?
- Service records: Has the equipment been maintained properly? Can you see the records?
How Much to Buy
How much equipment do you need to start? It depends on what kind of work you'll be doing. If you're just starting out, you can start small — 2-3 pump trucks, plus the necessary support equipment. As you get more business, you can add more trucks. Don't buy more than you need at first — you can always expand later.
FAQ
Q: How much does it cost to start a well stimulation service company?
A: It depends on how big you want to start. A small operation with 2-3 pump trucks and basic support equipment can cost $3-5 million. A medium-sized operation with 10-20 trucks costs $20-50 million. A big operation costs hundreds of millions.