The Benefits of Buying and Selling Used Oil Field Equipment

If you are confused about finding the best equipment, between new and useused oil field equipmentd equipment, then the answer is ‘it depends’. When you need machinery or attachments, every business is different, and knowing how long you need equipment and how much you can afford it is essential for the decision-making process.

It can be a cost-effective strategy to purchase used oil field equipment to expand your operations without compromising on efficiency or quality. In this blog, you will learn about the advantages of buying and selling equipment, the main categories of equipment in the oilfield industry, and their roles in the production process. 

Oil Field Equipment

Oilfield equipment comprises oil and gas tools and equipment used in the oil and gas industry. It has equipment for production, drilling, safety, pressure control, and transportation of hydrocarbons. The correct equipment reduces risks, ensures regulatory compliance, and supports efficient processes. 

The surplus oil and gas equipment which are used include:  

• Tanks: Bullet tanks, Methanol spheres, Frac tanks, Production storage tanks
• Heaters: Line heaters, Direct heaters, Indirect heaters
• Compressors: Reciprocating compressors, Screw compressors, Gas compressors
• Separators: Horizontal separators, Vertical separators, Oil/Water separators
• Pumps: Pump jacks, Oil transfer pumps, Submersible pumps, Diaphragm pumps

Benefits Of Buying Used Oil Field Equipment

While buying heavy equipment for your company, you will find various used and new machines to rent or purchase. New equipment has its merits, but you will find plenty of benefits in buying or renting pre-owned machines that make them a better investment for you in the long run.

Let’s jump onto some of the benefits of purchasing used equipment for your business.

Upgraded Features

You can access the same technology you would expect from a newer machine as long as you purchase used equipment that was not manufactured too long ago.

You can also consider your existing machinery’s features and note that the equipment used will be similar to it in that same model on a year-by-year basis. When you purchase the used version from the industry’s most trusted manufacturers, expect the same functions of the newer model at a lower price point. 

Cost Efficiency

Cost is the primary and most appealing reason to buy used processing equipment instead of new. As soon as new equipment is gently used, the value of it depreciates at an exponential rate.

It means that you can buy used energy equipment which is in good condition for tens of thousands of dollars, less than purchasing new and avoid the hit of the initial value depreciation. You can sell or recoup more of your costs if your used processing equipment becomes unnecessary than if you had purchased new. 

Less Insurance Cost

The cost of insuring used equipment is lower than insuring a similar model of new equipment. The overall average cost of coverage will be less expensive in the case of used construction equipment like a forklift since it has a lower replacement cost compared to new equipment. 

It will benefit new businesses as you will need to factor insurance into your overall cost. Insurance costs can run pretty high depending on the amount of insurance you need and the value of your equipment. When you opt for used equipment, the price can be much lower. 

Avoid Depreciation

Construction equipment begins depreciating as soon as you take it off the dealer’s lot. You can expect double-digit depreciation within the first year of purchase that slows within the second and third years of ownership. If you choose used equipment, it will avoid the initial depreciation and let you focus on building your fleet.

Rather than owing more on new equipment than the initial cost due to depreciation, you can turn your attention toward projects you need to complete. Keeping up with regular maintenance means that you can even sell that equipment later. 

Encourage Sustainability

As time goes on, sustainability continues to gain relevance, especially in the construction industry. If you are buying used equipment, then it means a manufacturer doesn’t need to produce a new machine, wasting resources and increasing your company’s carbon footprint.

As it reduces the level of steel and iron consumed, the used market limits the number of machines manufactured each year. This also helps reduce industrial waste and contributes to a greener planet. You can save money and also protect the environment by purchasing used equipment. 

Benefits Of Selling Used Oil Field Equipment

Selling used oil and gas tools and equipment can be a strategic move for businesses in the oil and gas industry with several key benefits. Let us look at why it makes sense to consider selling your surplus oil and gas equipment.

Reducing Storage Cost

Oil field equipment that is unused can take up valuable storage space. Businesses can free up space for new tools by selling equipment that is no longer in use and also reduce the associated costs of maintaining and storing equipment that serves no immediate purpose.

Access To a Broader Market

Selling unused equipment can expand your reach in the industry. There is a growing demand for cost-effective solutions in emerging markets or smaller operations that can not afford brand-new machines. You can make it easy for other businesses to expand their operations by offering used equipment.

Recouping Capital

One of the primary benefits of selling used oil field equipment is the ability to recoup some of the initial investment. Even after it’s no longer needed, equipment holds value and selling it can provide a significant cash flow boost. It helps companies to free up resources for other investments or operational needs. 

Streamlining Operations

You’re effectively decluttering your operations when you sell outdated or surplus equipment. This helps in improving efficiency by allowing businesses to focus on the machines and tools they use rather than holding onto equipment that no longer serves their needs.

Helping Other Businesses Grow

You’re giving smaller companies or startups the opportunity to access quality machinery at a fraction of the cost of new equipment by selling used oil field equipment. This can help in the growth of businesses that do not have the capital to invest in expensive new tools. 

ReflowX: Buying And Selling Of Used Oil Field Equipment

ReflowX plays an essential role in buying and selling used oil field equipment as it helps the manufacturers that are looking to either buy or sell. ReflowX ensures that the equipment is reused effectively and efficiently. It provides a range of features that benefit both buyers and sellers. 

Key Features Of ReflowX: 

• Wide Range Of Equipment: ReflowX ensures diverse options for buyers and sellers and offers a selection of used oil field equipment across various categories.

• Logistics Support: ReflowX ensures smooth deliveries by providing optimized logistics for safe and efficient shipping and handling of used equipment.

• Secure Transactions: ReflowX provides peace of mind for both buyers and sellers throughout the transaction process by ensuring secure and trusted payment options. 

Conclusion

ReflowX offers a seamless platform for buying and selling used oil field equipment, providing sustainable, cost-effective and efficient solutions. It helps businesses optimize operations, expand their market reach, and reduce waste with secure transactions, global marketplace and logistics support. It makes it a valuable tool for both buyers and sellers in the oil and gas industry.

Visit ReflowX to check out more about the benefits of buying and selling used oil field equipment.