AFE (Authorization for Expenditure)

The phase where installed equipment and systems are connected to utilities, instrumentation, and process lines. For subcontractors, hookup work often follows construction and represents a distinct, billable scope. Crews must coordinate closely with commissioning teams to avoid delays.

The number of rigs actively drilling for oil, tracked weekly by services like Baker Hughes. A rising count signals increased demand for field crews, equipment, and well-site services. Subcontractors use it to anticipate work volumes and adjust capacity accordingly.

A formal period when a pipeline operator solicits capacity commitments from shippers before building or expanding a line. For subcontractors, it signals upcoming construction and maintenance work. Winning bids during this phase often trigger mobilisation timelines and crew planning.

A single end-to-end processing unit that cools natural gas into liquid form for storage and export. Large LNG facilities run multiple trains, each requiring dedicated construction, maintenance, and shutdown crews. Subcontractors are typically mobilised per train, making scope and schedule highly compartmentalised.

The percentage of your available crew, equipment, or fleet actively generating revenue at a given time. Low utilization means idle resources eating into margins. Subcontractors track this to identify gaps between awarded contracts and deployed assets.

Subsurface saltwater containing dissolved lithium, extracted from formations during drilling or dedicated mining operations. Subcontractors may encounter it on fluid handling, well servicing, or evaporation pond construction contracts. Demand for lithium is driving new project activity across western Canada and the Prairies.

What Is an AFE in Oil and Gas and How Does It Affect Subcontractor Payments?

An AFE (Authorization for Expenditure) controls every dollar spent on an oilfield project. Learn how it affects your billing, change orders, and cash flow as a subcontractor.

How Operator Mergers and Acquisitions Affect Your Subcontract Agreements

When operators merge, get acquired, or sell assets, subcontractor agreements are caught in the middle. Learn how M&A activity affects your MSA, payment terms, vendor status, and what to do before, during, and after a deal closes.

How Rig Count Trends Affect Subcontractor Demand and What to Do About It

Rig counts are the earliest signal of where field service work is heading. Learn how to read drilling activity trends, anticipate demand shifts, and position your crew before the phone stops ringing.