November 2014

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34 | www.cedmag.com | Construction Equipment Distribution | November 2014 A Closer Look Oil and gas exploration in the U.S. is booming with crude production up 50 percent from 2008 to 2013, and an additional 27 percent predicted for 2015. At that same time, natural gas production is at record high with a 22 percent increase from 2008 to 2013 and an additional growth forecast at 8 percent next year. All that growth translates to a boom in construction equipment rental as well, with growth predicted at nearly 15 percent in the next four years. But with that good news also comes the mandate for local companies to step up their game both to maintain existing relationships and garner new ones, as oil and gas firms look for the best service, and new equipment rental companies move in to chase the burgeoning industry. In a webinar hosted by Rental Equipment Register, Dale Leppo, chairman of the Ohio-based Leppo Group, Kevin Groman, CEO of ECM Energy Services in Scottsdale, Ariz., and Chris Kale, general manager of Wagner Rents in Denver, sat down to talk about what it takes to be at the top of the list when drilling and production companies come calling. It all comes down to two words: "extreme responsiveness." "The next couple years are going to have significant growth," Groman said. "That secular shift we saw in the general rental play is going to happen even more so in the U.S. shale play. People are realizing the maintenance, the storage, the upkeep, the safety elements; it is much more efficient for someone else to be responsible for that and for them not to have to worry about it. "As long as the companies have extreme responsiveness, which is what you need on these well sites, you're going to be able to keep the business," Groman continued. "It's customer service that will help you lose the business and will help you keep it. They don't want to deal with the annoyance of equipment rental, they want to be drilling and produce fuel and oil out of the hole. "We've seen where some of these producers were getting into equipment and dealing with headaches of shutdowns, not being able to call someone at 2 a.m. to fix it in the middle of the night. All and all, those elements are really driving this as a strong market. The focuses are going to be there for some time." That 2 a.m. call is exactly why rental companies can't (continued on page 36) When They Say Jump, You Better Fly Rental is huge for the shale energy industry, but these customers are huber-demanding and won't hesitate to bounce you if you don't deliver. BY LORI TOBIAS An Ohio drilling site is full of a range of equipment that AED members rent. Photo courtesy: Leppo Group.

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