There are a lot of things that are necessary for any operating oilfield. In order to make sure that you have those things, you can either decide to rent, or you can decide to buy. There are plusses and minuses to each choice, but when it comes to heavy equipment to make an oilfield run, the best choice is to rent the equipment that you need. There are several very good reasons that you should rent your heavy equipment.
1. Borrowing Power
One of the things that can help any business is to have good credit and strong borrowing power. Renting your heavy equipment is one way that you can maintain that borrowing power. That's because when you go to a bank and show them your books when you are asking for money, they are going to look at the things that you rent differently than the things that you own. Renting equipment doesn't create the same kind of liability on your books the way that owning heavy equipment does because you bear all the costs of purchasing, maintaining, and replacing the equipment.
2. Environmental Compliance
Every state has its own environmental compliance laws, some stricter than others. That can include things like how much emissions the equipment can put out, among other things. Those compliance laws can change, and it can be hard for a business owner to keep track of those things, especially when there are a lot of other things that you are trying to track. If you get caught being out of compliance with the environmental laws, you risk some serious fines.
However, if you are renting the equipment instead of owning it, it is the rental company's responsibility to keep track of the different kinds of laws and to make sure that the equipment continues to be compliant. They may bear the liability of fines or other consequences when it comes to machinery that doesn't meet the standards. You should make sure that you check any rental agreements as to what liability the rental company would bear and make sure that you understand where the delineation stands so that you know what you will have to deal with.
If you have an oilfield, you may be tempted to go out and buy all the equipment that you need. The problem with that is that owning the heavy equipment isn't necessarily the best choice. There are many benefits to renting the equipment instead. For more information, contact a company like Hurley’s Oilfield Service today.