KPI (Key Performance Indicator)

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 total land area an operator has licensed to explore or produce hydrocarbons. Larger leasehold positions typically mean more sustained work for subcontractors across multiple well sites. It signals the operator's activity footprint and potential contract volume in a region.

Equipment and processes used to identify fluid or gas escapes in pipelines, tanks, or wellheads. Subcontractors are often hired to install, inspect, or maintain these systems under strict regulatory timelines. Failing to meet operator specs can trigger contract penalties or work stoppages.

A durable, corrosion-resistant plastic used for pipes, containment liners, and fluid transfer systems on job sites. Subcontractors commonly install or tie into HDPE pipelines in water, gas distribution, and environmental remediation scopes. Its lightweight nature reduces handling costs but requires certified fusion welding for pressure-rated connections.

Electrical equipment used to control, protect, and isolate power systems on job sites. Subcontractors working near switchgear must follow strict lockout/tagout procedures. Installation and maintenance work often requires certified electricians and site-specific safety permits.

Raw, unprocessed natural gas delivered to a processing plant or facility as the primary input. For subcontractors, feed gas specifications determine the scope of compression, treating, and handling work on site. Changes in feed gas composition can trigger scope variations and affect your contract terms.

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.

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.