Equipment Appraisal Blog | Understanding Machinery Appraisals

How Rig Site Safety Asset Appraisal Protects Your Business's Bottom Line

Posted by Equipment Appraisal Services on Mon, Mar 02, 2020 @ 08:00 AM

Oil platform

When you're in the oil and gas safety business, you know that you need to run a tight ship to keep operating profitably while the market is hot. But have you considered the assets you have and how they can impact your business' ability to compete? One aspect category that is commonly overlooked is safety equipment. Your clients need to make sure that you've got it on-site just in case, but what is it really worth and can you leverage that value to improve your business? Here's a quick look at how a rig site safety asset appraisal can help protect your company's bottom line.

How Rig Site Safety Asset Appraisal Protects Your Business's Bottom Line

To start, you'll want to consider what kind of equipment you should have appraised:

  • Cargo vans or trucks: To get your equipment from point A to point B, you need vehicles capable of hauling it, whether it's to get the equipment on-site or to restock medical packs and air bottles that have been used up over time.
  • Portable showers: Oil and gas rigs equal dirty work, in terms of dust, grime and sweat as well as chemical treatments that are used on-site during drilling operations. Portable showers are vital to your customers and may take a beating by the roughnecks using them.
  • Heating or cooling trailers: It's fairly common for drilling to happen in some of the most extreme environments on the planet. Whether it's burning heat or freezing cold, trailers protect crew members from exposure injuries and are a valuable asset.
  • Gas sensors and monitors: If your gas sensors or monitors aren't functioning properly or are getting old, they may not provide the protection they're supposed to for your clients. 
  • Fire suppression equipment: A fire on a drilling rig is an oil or gas company's worst nightmare. Your fire suppression equipment is priceless at that point, but what's it worth the rest of the time?

However, there are other types of equipment that you should also have appraised that you may not have considered. This includes: 

  • Emergency medical packs: These small but vital packs provide important medical supplies in a timely manner. Because they're required in so many locations, their value builds up.
  • Personal protective equipment: Safety harnesses, hearing protection, safety glasses, respirators: all of these items keep workers safe on the job and add up to a large portion of your inventory.
  • Oxygen masks and air bottles: These grab-and-go items provide much-needed oxygen during an evacuation, but must be regularly checked, refilled and replaced if malfunctioning.
  • Signs: Where's the emergency exit? Can someone grab the defibrillator? What about OSHA regulations? Without signs, the workplace becomes that much harder to navigate.

By taking the time to have a rig site safety asset appraisal performed on your gas and oil safety business' equipment, you can ensure your accounting books are up to date, your equipment is in good condition and you can leverage every possible asset when you need fast growth. However, that appraisal is only as good as the person making the calculations. Make sure that you have your equipment appraisal performed by an accredited equipment appraiser who doesn't have any interest in the final result and can provide you with an independent estimate of your equipment using tested methodologies that will hold up in legal, financial, tax and insurance issues.

Tags: Rig Site Safety Equipment Appraisal