Multi-Zone Testing

The percentage of a refinery's total processing capacity actively in use at a given time. Higher utilisation rates signal increased demand for maintenance, turnaround, and inspection crews. Subcontractors can use this metric to anticipate workload surges and mobilisation timelines.

The trucking of proppant (silica sand) from storage terminals to active frac sites. Subcontractors operate on tight dispatch schedules to maintain continuous sand supply during pumping operations. Contracts often include standby rates for wait time at the wellsite.

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.

A compression system that captures hydrocarbon vapours from storage tanks or production equipment instead of venting them. Subcontractors are often hired to install, maintain, or service VRUs to meet emissions regulations. Familiarity with VRU work is increasingly required on oil and gas production sites.

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.

Systems that use compressed air or gas to power tools, actuators, and control valves on job sites. Subcontractors working with pneumatic equipment must ensure proper pressure ratings and fittings are maintained. Common in instrumentation, pipeline, and heavy construction scopes.

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.