With the economy improving and employment at record highs, I have been wondering if drillers have looked at their pricing structure lately. With costs of materials, labor and fuel going up, it seems that a good look at what we charge might be a smart idea. Consider things like the possible import tariff on steel. If you run steel casing, the price is probably going to go up. Pump prices also rise with time. (Seems like every 15 minutes …) With a flush labor market, it is hard to hire qualified help and you are going to have to pay more to hire — and retain — good hands. Is this reflected in your bid?
A driller in Colorado needed a helper, so he put an ad in the paper. He listed what he would pay. He had 10 applicants. Nine of them failed the routine drug screen. They all said, “Pot is legal in Colorado.” He said, “Not in this company.” The 10th one passed, but was so dumb that it looked like drugs had already taken their toll. He re-ran his ad, offering more money. He got some good candidates and hired a hand the next day. This cost goes straight to the bottom line.