Estevan鈥� Alliance Drilling of Estevan has kept drilling, albeit at a reduced pace, through the downturn.
Four years ago Advance Drilling Ltd.鈥檚 ownership divided the company, resulting in two companies, Advance and Alliance Drilling and Oilfield Services Ltd., which are now totally separate entities.
Alliance is owned by Paul Chueng, who was also a partner in Grimes Sales & Service prior to the company 小蓝视频 purchased by Schlumberger. Ron Mowberry is the general manager and a part-owner in Alliance, as well.
Brian Skjonsby is assistant manager of Alliance, where here鈥檚 been for three years now. Prior to that he worked for oil producers as a consultant for drillings, construction and completions. One of the early companies he worked with was Grandbow Petroleum, but most recently, he had been with Spectrum Resource Group. Skjonsby spoke to Pipeline News on Jan. 21.
Alliance has eight drilling rigs, making it one of the larger outfits among the small drilling contractors based in southeast Saskatchewan. All eight of its rigs were once Advance rigs, and they are slowly 小蓝视频 changed over from Advance鈥檚 trademark burgundy colour to Alliance鈥檚 blue.
Skjonsby said in 2014, before the oil shock, Alliance was running five to six rigs regularly. But in 2015 that slowed down quite a bit. 鈥淲e probably ran an average of three or four,鈥� he said.
Road bans, in recent years, have tended to run a long time as well, affecting activity levels.
As for 2016, so far, he said, 鈥淲e plan on having four rigs working until road ban.
鈥淭hings have changed a lot. I see we鈥檙e going back into the 80s 鈥� a big slowdown. You have to watch your pennies. One鈥檚 going to make a fast buck like in the boom.
鈥淧aul predicted before the slowdown started (there would be) $28 oil. A lot of people didn鈥檛 believe him. He was right,鈥� Skjonsby said.
Of those four rigs working, he said, 鈥淭oday we have three working for Crescent Point and one that works for a few other companies, but mostly Elcano. The rest are parked, but ready to go. We put in bids and maybe we鈥檒l get lucky.鈥�
Where are the workers?
鈥淏elieve it or not, as slow as it is, it鈥檚 still tough to find men,鈥� Skjonsby said.
鈥淚 don鈥檛 know where everyone鈥檚 going. Housing in Regina? Or they don鈥檛 want to work?
鈥淚 have no idea what鈥檚 going on. I think a lot of people are leaving and not coming back, looking for steady work. You get paid good money, but it鈥檚 not a steady cheque,鈥� Skjonsby said of rig work. 鈥淭hat鈥檚 the reality. It has always been.
鈥淚n today鈥檚 world, you have so many rigs laid down, and you have a core of people. When it comes to slow times, you try to get the most experienced people you can.
Skjonsby said, 鈥淲e鈥檙e starting to see the phone calls come now. This week, we noticed it. I think a lot of guys think this will be a short slowdown. We believe it鈥檚 an eight-year slowdown, to get to what it was.
鈥淭he only thing that will change that is a war.鈥�
Strategies
So, what strategies are Alliance following, given they thing low prices are long term?
鈥淜eep out of debt. Cash is king,鈥� he said.
While Cheung has numerous investments, Skjonsby said companies have to support themselves. Alliance is in a good capital position.
鈥淚n these times, you don鈥檛 want to go into debt,鈥� Skjonsby said. 鈥淢anage properly. Don鈥檛 overspend. No thrills. No more swag. It鈥檚 time to buckle down.鈥�
For instance, instead of fancy give-aways that have been common in the industry for years, he鈥檚 suggesting pens might be a less expensive alternative.
鈥淲e cut wages a little bit, but we brought them back up. We found other ways to cut costs.
鈥淭he biggest thing is we want to keep the men working. They鈥檙e paying their bills.
He added, 鈥淚t鈥檚 getting quieter and quieter. I think it鈥檚 going to be a quiet summer.鈥�
鈥淭hirty-two years in the oilfield, it went really fast. I still enjoy it a lot. I鈥檓 still learning a lot,鈥� he said. In all that time, the number of people he鈥檚 interacted with in the oilpatch that he didn鈥檛 like he could count on one hand. The vast, vast majority of people he鈥檚 found quite pleasant.
鈥淭hat鈥檚 what keeps me in it 鈥� people. It鈥檚 a lot of fun. Sure, some hours are late. Some are short.鈥�
