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Industry Glossary Term

Rig Utilization

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.

Related Terms

Wall Thickness Assessment

Industry

An inspection process that measures remaining material thickness in pipes, vessels, or structural components to detect corrosion or erosion. Subcontractors are often hired to perform these assessments using UT (Ultrasonic Testing) equipment. Results determine whether assets require repair, replacement, or continued monitoring.

STEO (Short-term Energy Outlook)

Industry

A monthly U.S. Energy Information Administration report forecasting near-term oil, gas, and energy prices. Subcontractors use it to anticipate upstream spending trends and project demand for field services. Shifts in STEO forecasts often signal whether operators will ramp up or cut back work programmes.

Booster Compressor

Industry

A secondary compressor used to increase gas pressure in pipelines or processing systems when inlet pressure is too low. Subcontractors are often hired to install, operate, or maintain these units on short-term field assignments. Rental and service contracts for booster compressors are common in late-life field operations.

Gathering System

Industry

A network of pipelines, compressors, and facilities that collect hydrocarbons from wellheads and move them to processing points. Subcontractors frequently support construction, inspection, and maintenance work across these systems. Scopes can span remote multi-well pads, requiring strong logistics and crew coordination.

Crown Land Sale

Industry

A government auction where energy companies bid on licences to explore or develop publicly owned land. Winning bids signal upcoming drilling and field activity in that area. Subcontractors watch these sales to anticipate new work and mobilise resources early.

Well Testing

Industry

A series of controlled flow and pressure measurements performed on a newly drilled or existing well to evaluate its production potential and reservoir characteristics; for subcontractors, this work often involves deploying and operating specialised equipment such as separators, flowback units, and data acquisition systems under tightly scheduled, high-priority conditions.

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