The percentage of time a rig is actively working versus sitting idle. For subcontractors, high rig utilisation means steady billable hours and predictable revenue. Low utilisation signals contract gaps that strain cash flow and crew retention.
Rig Utilization
Related Terms
Unconventional
IndustryRefers to oil and gas extracted from tight rock formations requiring hydraulic fracturing or horizontal drilling. For subcontractors, unconventional work typically means large multi-well pad sites with high crew and equipment demands. Expect fast-paced rotational schedules and specialised service requirements.
Best-Value Selection
IndustryA contractor award method where clients evaluate price alongside factors like safety record, experience, and equipment quality. Subcontractors are not automatically disqualified for submitting the lowest bid. Demonstrating strong credentials and reliability can outweigh a competitor's cheaper rate.
Precast Concrete Panels
IndustryFactory-manufactured concrete sections delivered to site ready for installation. Subcontractors handle lifting, positioning, and anchoring rather than forming and pouring. Speeds up schedules but requires certified rigging crews and heavy lift equipment.
Interconnection
IndustryThe physical linking of two or more systems, pipelines, or electrical networks at a shared tie-in point. For subcontractors, interconnection work often requires strict coordination with the prime contractor and operator. Scope boundaries and handoff responsibilities must be clearly defined in your subcontract.
BESS (Battery Energy Storage System)
IndustryA large-scale battery installation that stores and dispatches electrical power on remote or off-grid job sites. Subcontractors may be hired to install, commission, or maintain these units alongside diesel generators or solar arrays. Familiarity with high-voltage systems and OEM safety protocols is typically required.
Straddle Plant
IndustryA midstream processing facility installed along an existing pipeline to extract natural gas liquids like propane and butane. Subcontractors are frequently mobilised for construction, maintenance, and turnaround work at these sites. Work scopes often include compression, refrigeration, and fractionation system servicing.
Latest Industry News
AKITA Adds Six Rigs, Enters Multi-Year Utilization Deal with Paramount
AKITA Drilling has closed its acquisition of Fox Drilling from Paramount Resources, adding six triple rigs and securing a three-year, 2,700-day rig utilization commitment.
2 months agoIndustryCivil Contractors Rack Up Federal Awards as Jacobs Lands $131M OKC Water Deal
Construction Dive's weekly roundup shows Jacobs, Skanska, Brasfield & Gorrie and Granite Construction landing government infrastructure contracts worth over $300 million combined, offering fresh benchmarks for subs pricing similar public works scopes.
13 hours agoIndustrySummit Petroleum Sees Strong Results From U-Turn Laterals in Upton County
Midland-based Summit Petroleum reports an average initial production rate of 1,584 barrels per day from five U-turn lateral wells in Upton County, part of a 10-well plan built around a single section of land.
13 hours agoIndustryEIA Sees Record US Crude Output in 2026 on Permian, Gulf Gains
The EIA forecasts US crude oil production will average a record 13.8 million b/d in 2026, driven by Permian basin growth and new Gulf of Mexico projects.
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Industry GuideHow 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.
Industry GuideWhat 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.
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