WorldWide Drilling Resource

Ronnie’s Real World Future & Current Landscape of Water Well Drilling Chapter 5 Justin Hammond, Martin B. Hammond Co. Ltd. When last we left Justin, he was hitting on something near and dear to our hearts - our pocketbooks! Let’s see what he has to say about “the rest of the story”. . . “Even us, we can only rely on our reputation to a limit. We too need to worry about the future and raising the price per foot. Our quality work may be our strength, but the capital intensive business that is well drilling is a major weakness. Every year as we absorb costs, our profit shrinks. If we, the same as all drilling profession- als, fail to raise our prices, the costs of operating will simply outweigh our profits, and it’ll inevitably run us out of business. This is one of the hardest business aspects of being in the drilling industry. We all need to take into consideration the very capital-intensive business we are in. The price of a new drill rig, cost of maintenance, garage and yard space needed, costs of water trucks, pickup trucks, and pump service trucks needed [are all a cost of doing business.] Drilling contractors need to learn to value their own work and get properly paid. After all, drilling professionals themselves are unique people, needing to possess many skills. These people must receive a wage that reflects those skills to complete a quality job so at the end of the day, the customer is left with the best job possible.” And so, that is how this very bright young man, just beginning his future in drilling in the real world, sees the problems and wants us all to address those. As you reflect back on this series of his article, do you see how he grew and matured, much older and wiser than his years, with a bright outlook, but cautiously optimistic? He has made me think, even about the costs of doing busi- ness here at WorldWide . Yes, it is tough to raise rates, no matter the business we are in - but at some point, becomes necessary; sometimes necessary to surpass your competition. Any comments from your side of the rig? We welcome your contributions. For now, This truly is, Ronnie’s Real World . . . 27 WorldWide Drilling Resource ® JUNE 2018