The average daily production output of a new well over its first 120 days. Operators use this benchmark to schedule and extend field service contracts. Strong IP120 results often trigger follow-on work for completions and production crews.
Ip120 (initial Production 120-Day Rate)
Guides on this topic
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.
Related Terms
IEA (International Energy Agency)
IndustryAn intergovernmental organisation that publishes global energy outlooks and demand forecasts, which subcontractors and field service companies use to anticipate shifts in upstream and downstream activity levels that may affect project pipelines and contract opportunities.
Heat Tracing
IndustryA system of electric cables or steam lines wrapped around pipes to prevent freezing or maintain process temperatures. Subcontractors are often hired to install, inspect, and commission these systems during turnarounds or new construction. Common in cold-climate facilities handling water lines, instrumentation, and process piping.
Pipeline Interconnect
IndustryA tie-in point where two or more pipelines are joined to allow fluid or gas transfer between systems. Subcontractors are often mobilised for the hot-tap, welding, and pressure-testing work at these connections. Scope can expand quickly, so confirm tie-in specifications before pricing the job.
Roadway Decking
IndustryTemporary modular panels laid over pipelines, cables, or trenches to allow vehicle and equipment traffic across a work site. Subcontractors are often responsible for installation, load-rating compliance, and removal. Costs are typically billable as a mobilisation or site-prep line item.
Tight Gas
IndustryNatural gas trapped in low-permeability rock formations that require hydraulic fracturing or horizontal drilling to extract. For subcontractors, tight gas projects typically involve intensive well stimulation work and longer mobilisation cycles. Expect higher equipment demands and specialised crew certifications on these sites.
Spillway
IndustryA controlled channel or outlet designed to safely redirect excess water away from a work site. Subcontractors may be responsible for installing, maintaining, or working around spillways during site grading, civil, or environmental scopes.
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