FieldNews
Subscribe

Daily oil & gas and construction news for subcontractors

IndustryGlossary Term

Q&T (Quench and Tempering)

A two-stage heat treatment process that hardens steel pipe and structural components used in oil and gas and construction applications. The steel is rapidly cooled (quenched), then reheated (tempered) to improve toughness and reduce brittleness. Subcontractors working with Q&T-rated steel must follow strict welding procedures, as improper heat input can compromise the material's mechanical properties.

Related Terms

Gas Sales Precedent Agreement

Industry

A conditional agreement between a producer and gas buyer that must be satisfied before a project moves to full development. For subcontractors, it signals that major field mobilisation and long-term work commitments depend on this deal closing. Delays or failed negotiations can stall contracts, procurement, and crew deployment.

Begin Actual Construction

Industry

The point when physical site work starts, triggering contract milestones, mobilisation schedules, and billing periods for subcontractors. It typically marks when crews, equipment, and materials must be on-site and ready. Delays to this date directly affect subcontractor cash flow and resource planning.

WTI (West Texas Intermediate)

Industry

A global benchmark crude oil price used to gauge market health and operator spending confidence. When WTI prices drop, clients often freeze or cut field service contracts and budgets. Rising WTI typically signals more work and stronger mobilisation activity for subcontractors.

DEF (Diesel Exhaust Fluid)

Industry

A urea-based solution injected into diesel exhaust systems to reduce harmful emissions on Tier 4 equipment. Subcontractors must keep adequate DEF on-site, as running out triggers engine derate or shutdown. Factor DEF supply and storage into your remote site logistics planning.

Lease Sale

Industry

A government auction where energy companies bid for the right to explore and develop specific land or offshore blocks. Winning bids signal upcoming exploration activity, which often leads to new work opportunities for field service subcontractors. Tracking lease sales helps companies anticipate demand and position crews and equipment accordingly.

Owner-Formed Alliance

Industry

A long-term agreement where an owner operator selects a fixed group of contractors to handle ongoing work. Subcontractors inside the alliance get preferred access to scopes but must meet strict performance and pricing benchmarks. Those outside the alliance are often locked out of bidding entirely.

Stay sharp on field operations

Industry news and insights, delivered to your inbox.

Subscribe to FieldNews
A community project byAimsio