Perhaps one of the biggest investments that any oilfield company makes involves oilfield equipment itself. Purchasing this kind of equipment is an equally big decision as well, and there are many pros and cons involved with this type of decision.
Here are some of the pros and cons involved with purchasing various types of oilfield equipment.
PROS
- Perhaps one of the biggest advantages involving purchasing oilfield equipment is that you will own it and it will become a major part of your business, meaning you won’t have to rely on borrowing anything from anyone else.
- Owning the equipment means that it will always be there and available for you to use whenever you need to use it.
- Using the equipment itself on a more frequent basis and for a longer time period means that making the purchase will actually be cheaper in the long run.
- In the event that you decide to sell the equipment in the future, there is always the chance that you may get a return on your investment.
- Owning your own oilfield equipment could potentially mean that you could obtain some type of tax advantages.
CONS
- In terms of purchasing your own oilfield equipment, this is generally considered to be a large financial investment. This is especially the case if you’re in search of the latest models.
- When you purchase the equipment, you will be the one responsible for maintaining and repairing it rather than being able to rely on someone else to do all of the maintenance and repair work.
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