Field Operations Glossary

A budgeting document used in oil and gas projects that outlines expected costs and seeks approval before work begins. Subcontractors often work under AFEs issued by operators.

The leading industry organisation that develops technical standards, safety protocols, and equipment specifications that subcontractors must follow when working on oil and gas projects. API certifications and compliance with API standards are often mandatory requirements in service contracts and can affect your ability to bid on projects.

A charge issued by an operator or general contractor to a subcontractor for costs incurred due to defective work, delays, or failure to meet contractual obligations.

The collection of drilling tools and equipment at the bottom of the drill string, including the drill bit, drill collars, stabilizers, and downhole motors. For drilling subcontractors, BHA configuration directly impacts drilling performance, tool wear rates, and operational efficiency.

A standardised unit of energy measurement that converts different types of oil and gas production into equivalent barrels of crude oil, used by operators to report total production volumes when determining project scope and service requirements for subcontractors.

A voluntary safety certification program in Canada that recognizes employers who have developed health and safety management systems that meet established standards. Required by many operators in Alberta and Western Canada.

Steel pipe installed in a wellbore to provide structural integrity and prevent contamination between different geological formations, requiring specialized installation and cementing services that subcontractors frequently provide during drilling operations.

A pricing model where contractors are paid a fixed daily rate for equipment and/or personnel, regardless of the amount of work completed that day.

The average number of days it takes to collect payment after a sale. For field service companies, DSO measures how long between completing work and receiving payment. Industry benchmarks range from 30-60 days.

A project delivery model where one main contractor handles all phases from design to completion, typically creating multiple subcontracting opportunities for field service companies across different project phases. For subcontractors, EPC projects often mean working under a prime contractor who coordinates all trades and manages the overall timeline and specifications.

A document created in the field that records work performed, equipment used, materials consumed, and time spent. Field tickets are the basis for invoicing and must typically be approved by the customer before payment.

The number of field workers supported by each administrative/office employee. A ratio of 10:1 is common for paper-based operations; digitized operations often achieve 30:1 to 40:1.

A safety and compliance management system used by some operators to pre-qualify and manage contractors working on their sites.

Expedited delivery service for equipment, parts, or materials to remote job sites. Often used for urgent oilfield deliveries.

A contractor management platform used by operators to verify that subcontractors meet safety, insurance, and compliance requirements before being allowed to work on sites. Maintaining ISNetworld compliance is essential for subcontractors working with major operators.

The process of tracking all costs associated with a specific job or project, including labor, equipment, materials, and overhead. Accurate job costing is essential for understanding profitability.

A breakdown of costs on a field ticket or invoice, separating charges into labor hours, equipment usage, and materials consumed.

Natural gas cooled to -162°C to become liquid for easier transport and storage, creating specialized work opportunities for subcontractors in cryogenic equipment maintenance, pipeline construction, and terminal facilities that require specific safety certifications and cold-weather expertise.

A pricing model where the contractor agrees to complete a defined scope of work for a fixed total price, regardless of actual costs incurred.

A contract between an operator and a service company that establishes the general terms and conditions for all future work. Individual jobs are then executed under work orders or AFEs referencing the MSA.

The segment of the oil and gas industry involved in processing, storing, and transporting oil, gas, and NGLs. Includes pipelines, gathering systems, and processing plants.

The process of moving equipment and personnel to a job site (mobilization) and returning them afterward (demobilization). Often billed as separate line items.

Payment terms indicating when payment is due after invoice date. Net 30 means payment within 30 days. Many operators use Net 45 or Net 60, extending subcontractor cash cycles.

The company that holds the rights to develop an oil and gas property and manages day-to-day operations. Operators hire subcontractors and service companies to perform various tasks.

Occupational Safety and Health Administration. The US federal agency responsible for workplace safety regulations. Compliance with OSHA standards is required for contractors working in the United States.

A document listing agreed-upon rates for various services, equipment, and materials between an operator and contractor. Field tickets are validated against the price book before approval.

Invoicing for work completed to date on a longer project, rather than waiting until project completion. Helps subcontractors maintain cash flow on extended jobs.

Revenue that is earned but never collected due to operational inefficiencies. Common causes include lost field tickets, unbilled equipment hours, forgotten third-party charges, and documentation errors. Industry estimates suggest 1-5% of revenue is lost to leakage in paper-based operations.

A formal document issued by prime contractors or operators asking subcontractors to submit detailed pricing and specifications for specific field services, equipment, or labour. RFQs typically include project scope, timelines, and technical requirements that subcontractors must address to compete for the contract.

The number of drilling rigs actively operating in a region. Published weekly by Baker Hughes, the rig count is a leading indicator of activity levels in the oil and gas industry.

A heavy oil extraction method using paired horizontal wells where steam is injected into the upper well to heat bitumen, allowing it to drain by gravity to the lower production well. Creates specialized maintenance and service opportunities for subcontractors in steam generation equipment, wellhead systems, and pipeline infrastructure at oil sands operations.

A company that provides specialized services to oil and gas operators, such as drilling, completions, workover, transportation, or maintenance. Also called oilfield services (OFS).

The date when drilling begins on a new well. Marks the start of drilling operations.

A company hired by a general contractor or directly by an operator to perform a specific portion of work. Subcontractors often specialize in particular services or trades.

A pricing model where the contractor bills for actual time spent and materials used, plus markup. Common for work where scope is uncertain.

The maximum depth reached by a drilling rig during well construction, measured from the surface to the bottom of the wellbore. For subcontractors, TD determines project scope, equipment requirements, and billing milestones as it marks the completion of the drilling phase.

When an operator returns a field ticket for correction before approval. Common causes include missing information, rate discrepancies, or insufficient documentation. Rejections delay payment and require rework.

A planned shutdown of a facility for maintenance, inspection, and repair. Turnarounds often require large numbers of contractors and subcontractors working intensive schedules.

A pricing model where work is billed per unit completed (per meter drilled, per cubic meter hauled, per joint welded, etc.).

The segment of the oil and gas industry involved in exploration and production (E&P). Includes drilling, completions, and well operations.

Provincial agencies in Canada that provide workplace injury insurance. Contractors must maintain WCB coverage and good standing to work on most sites.

The total value of contracted work that has not yet been completed. Used by bonding companies to assess contractor capacity and risk.

Operations performed on an existing well to restore, maintain, or improve production. Includes activities like recompletions, artificial lift installation, and remedial cementing.