The Solution vs. Cost Paradox

This article Sharing Challenges in the Eagle Ford Shale was posted in August of 2014, roughly the beginning of the end for the Eagle Ford Shale Boom and others like it across the United States. These problems have not gone away and I will wager that they are an afterthought these days.

What the industry is faced with is a solution vs. cost paradox. Operators and transport companies are faced with serious capital costs and tight budgets. “Chemicals” are a required yet, despised necessity in the oil & gas business. I joke all the time about how this business works, “Chemical companies are the first ones called, first ones blamed and always the last ones paid.” The reality is it’s a true statement.

For many in this industry, especially the major chemical companies and the private equity backed mid-sized chemical companies it is a constant struggle between finding a solution and generating revenue. Ask yourself how many times have we all heard of a problem that operators and producers share and how many conferences and expos are had to discuss these “problems”.

Now, analyze the capital expenditures associated with these and the economic impact. What we have is the classic “cancer” debate. Is there a solution? What if there is but there is too much money being made from the treatment rather than the cure?

Since 2010, I have personally witnessed operators switch chemical suppliers between the 3-4 “majors” in South Texas; only to have the same problems regardless of who the provider is. I witnessed one operator make a change and since that change has seen their chemical consumption/cost nearly triple while production has fell by 66%. WHY is this accepted and WHY hasn’t someone realized this?

“The oilfield has been built on the backs of the little guys.” I’ve heard this nearly my whole life from family members, friends, colleagues, mentors, etc. But today, the perception in many offices is that the only ones capable of solving the problem are the majors. This is not only wrong but it is tragic. What happened to the free-thinking wildcatter way that this industry was founded on?

That’s where MAKO Chemicals & Services, LLC comes in, our company was built upon the ashes of the Shale Bust, we took assets and clients from a business that was at the end of their desire to continue in a down market. We acquired their proven, successful formulations, their knowledge of the industry and their technical knowledge. Most importantly, we acquired the founders’ vision and his wildcatter attitude. To many it’s nothing more than a “damn, the torpedoes, full-steam ahead” mentality.

Mako is solutions driven and a service oriented company. We know that we are competing against multi-billion dollar, multi-national companies and multi-million-dollar private equity backed companies. But we also know and want to believe that there is still some common sense left in this industry. At the end of the day everyone, from the CEO to the grounds maintenance employee in any company, publicly traded or private should be focused on solutions and cost savings. It shouldn’t matter if you are a single employee company or a multi-national company. What matters is simple, I have a problem… Can you fix it?

Mako Chemicals & Services, LLC can fix it, when given the opportunity.


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