A cost-benefit analysis offers valuable data when making an informed decision about renting BOPs vs. buying BOPs. But, a big question remains; why should one spend extra cash buying BOPs when they need them for a short time? So, it pays to explore and compare the costs of hiring BOP products against purchasing them.
BOPs are essential tools for drilling projects. But, for various reasons, you may not need to buy a new BOP. Though owning the device is crucial, sometimes hiring comes with time and cost benefits. But if renting the BOP costs more than buying it in the long run, it makes sense to buy your BOP.Are you contemplating whether to rent or buy BOPs for your drilling operations? This guide compares renting BOPs vs. buying BOPs. Click To Tweet
Now, let’s compare the differences between renting BOPs vs. buying BOPs.
Benefits of Renting
Anyone who buys new equipment must have short and long-term storage plans. However, storage space can be costly no matter where you stay or what purpose it will serve. So, renting BOPs eliminates the need for long-term storage.
BOPs need constant repairs for smooth operation. The expense of maintaining and servicing a BOP in private ownership tends to be less foreseeable, but hiring a BOP guarantees zero maintenance cost.
New tools take a long time to arrive from the seller, sometimes losing a lot of time at the job site translating to lost income. Yet, you will get the BOP on-demand or pick it up anytime you need it when you have a rental agreement.
Benefits of Buying
There are obvious advantages to owning BOPs in your drilling project. First, BOPs are assets to your company. You can resell it upon demand or when you are through with your project. Second, owning a blowout preventer is convenient so that you no longer need to go and pick up the equipment from the rental shops.
General Liability Insurance
Insurance is a pricey small businesses liability one should not ignore when computing the cost of owning a BOP. Possible theft is another factor to consider in the insurance category of ownership since it’s a real possibility likely to impact your insurance. This is mostly not the case when renting a BOP where the owner has to cover insurance costs.
BOP Products and Services
Now that you know the differences between renting BOPs vs. buying BOPs, you can make an informed decision. You can compare the costs involved and select a cheaper option. If you plan to carry out drilling operations for a short time, consider renting BOPs. But, if your drilling operations will last forever, buying one will be cheaper.
Contact us to learn more about BOPs and their applications.