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The Upside of Better Inventory Control through Industrial Vending Machines
Everyone wants to run lean these days. But few companies actually succeed.
It’s no secret that lean management strategies can reduce costs, increase productivity and help companies compete. Yet, many companies fail when trying to implement these strategies in their production facilities.
One of the first steps in implementing a lean management program is effectively managing inventory, but without complete visibility into usage those efforts often fall short. Management rarely understands exactly how and where inventory items are being used without some form of tracking in place.
The result? Ineffective inventory control processes that rely on spreadsheet data or the honor system typically resulting in missing inventory, shrinkage or excessive inventory that ties up cash flow and collects dust.
Thinking about improving your inventory control processes? Here are 5 reasons to stop thinking and start doing:
- Reduce costs associated with inventory purchasing.
Without a clear view into the consumption of inventory items, how do you know what material is necessary for optimum production? The short answer is: You don’t. When you can track where and how inventory is being consumed, you can dial in just the right amount to hold in stock, saving time and money in purchasing.
- Improve production rates and decrease worker downtime.
When you have mission-critical items on hand, work gets done. Think of the time it takes employees to search for missing items or procure them at higher cost. Not only does this result in delayed production, but it also wastes manhours and increases inventory costs. Better inventory management ensures you have the tools and supplies you need on hand when you need them.
- Reduce lead time and make customers sticky.
If you are constantly running out of inventory, then you know how frustrating it is to wait for items to be replenished.From the time the items are ordered to the time they arrive on your doorstep can take days and, in some cases, weeks. Yet most companies fail to account for this delay in their project estimates. The longer this takes, the more it impacts your ability to deliver and the more customers start to look elsewhere.
- Free cash flow.
Ineffective inventory control can tie up cash that you could be investing in other areas of your business. Crazy to think that what may be holding your business back from increased success are covered in dust in a storage room. By implementing a better inventory control program, you can boost your cash flow almost immediately.
- Improve customer satisfaction rates.
You are in business to make money and part of doing so is making your customers happy. By knowing exactly what inventory you have on hand at any given time, you can meet customer demands, improve order fulfillment and create sustainable pricing models based on accurate cost analysis, rather than relying on guesswork.
Many manufacturers are introducing vending to their facilities to vend commonly used consumables such as disposable earplugs and gloves, as well as high-value, returnable items such as drills, saws and cutting tools. With traditional coil machines, locker units and combination coil and locker machines, there’s not much that can’t be vended. What does that mean for production facilities? It means your team always has the equipment they need to work efficiently, and improved visibility in the inventory items you need to control.
M&M Sales & Equipment is excited to partner with vending and inventory control specialist 1sourcevend to offer a simple, yet powerful inventory control solution. Learn more now.
If you would like to learn whether vending might be the inventory control solution you’ve been looking for, reach out to your local M&M Sales & Equipment sales rep or branch here in West Texas.
The Guide to Choosing the Right Saw Blades for Optimum Productivity
Choosing the right saw blade is critical to a manufacturing facility or machine shop’s profitability and productivity. Not doing so can lead to shorter blade life or complete blade failure diminishing any potential for efficiency. So, we created a handy guide that can help break down the terminology surrounding saw blade selection, as well as provide tips on extending blade life and how to properly break in your new blade. Whether you are sawing large workpieces or difficult to cut materials, knowing your blade can mean the difference between making money or losing it.
Common Saw Blades
Source: Lenox Tools
Circular Saw Blades: For use with miter saws, table saws, radial arm saws, cut-off saws and standard circular saws, these blades come in a variety of materials that can cut metal, wood, cement, glass or laminates. We sell a variety of metal circular saw blades from names like Lenox, Fein and Evolution! Be sure to ask about our Fiber cut-off wheels from Pferd and United Abrasives/SAIT.
Carbide Tipped Band Saw Blades: Designed to cut composites, metal and wood. High-performance steel and optimized carbide grades cut faster and last longer in a wide variety of sawing applications. For band saw blades, we offer a wide selection of blades from Lenox, Starrett and Arntz.
Bi-Metal Band Saw Blades: Bi-metal band saw blades are among the most versatile choice for most metal sawing applications involving a wide variety of materials such as aluminum and non-ferrous metals, carbon and structural steel. They’re cost effective, perform well and have long blade life with high-speed tooth tips and flexible alloy steel back.
Carbon Band Saw Blades: Economical and reliable, carbon band saw blades are great for general purpose and utility sawing. They are used to cut a variety of materials from carbon steels and aluminum to abrasive materials such as wood and fiberglass. Ideal for small maintenance and light-production shops.
Reciprocating Saw Blades: Whether it’s tile, clay, wood, cast iron, bricks or metals there’s a reciprocating saw blade for the job. Reciprocating saws are versatile in that you can swap out different blades for different materials. Ideal for maintenance, demo or repair applications.
Cold Saw Blades: High-speed steel cold saw blades are often used for cutting pipes, tubes and other solid steel materials. Many types of cold saw blades can be re-sharpened and used several times before replacing. The name comes from the transfer of heat energy during the cutting process. The blade and work material stay cold and the heat is expelled in the chip.
Grit Edge Saw Blades: Carbide Grit Edge Blades offer a seamless cut into abrasive and hardened materials, fiberglass, steel belted radial tires and other composites.
Hole Saws: Hole saw blades cut clean and accurate holes in a variety of materials from metals, woods or plastics.
Annular Cutters: Similar to a hole saw but runs in a magnetic drill. We offer a variety of premium annular cutters from FEIN.
Did you know? M&M Sales & Equipment can weld ¼-inch to 1 ½ inch wide saw blade material to any length on site; we also have the most popular lengths in stock from our supplier partners.
Understanding the Parts of Your Saw Blade
The Gullet is the space between each saw tooth that allows for efficient chip removal. The larger the material or the faster the feed rate, the deeper the gullet (such as in a 2/3 variable tooth blade that has a much bigger gullet than an 8/12 variable tooth’s gullet) and the more chips that are expelled.
Tooth Construction is another critical part of how your saw blades are made. Different tooth constructions offer different advantages. For instance, a carbide tipped tooth offers a longer lasting and smoother cutting blade.
Tooth Form refers to the shape of the tooth. The shape impacts how a blade cuts through material and can extend blade life, control noise level and provide a smoother cut and chip capacity.
- Variable Positive shape offers variable tooth spacing and gullet capacity for less noise and vibration, while simultaneously allowing for faster cuts, longer blade life and smoother cuts.
- Variable shape is similar to Variable Positive, but can be used for slower cutting rates.
- Standard is a good multipurpose shape that can be used in many various applications.
- Skip shape has a wide gullet ideal for non-metallic applications.
- Hook shape is similar to the Skip, but can be used on metal and non-metal applications.
Tooth Set refers to the number of teeth and the angle that they are offset. Different tooth sets impact cutting efficiency and chip carrying ability. For a clear visual on how tooth set can differ, refer to this guide from Lenox Tools.
Kerf Width is the width of the cut made by the blade into the desired material. Full kerf blades remove about 1/8” of material, while thin kerfs generally remove about 3/32” of material. Because the full kerf removes more material, it’s best to use with a more powerful saw. Thin kerf blades can be used with saws that use less horsepower.
Other consumables that can help or hinder cutting conditions are choices of hydraulic oil and cutting fluids. But it always comes down to blade selection. Choosing a better crafted blade designed for an application results in better wear and heat-resistance, fewer changeouts, better accuracy and less waste.
Learn more about blade maintenance in “How Do I Choose the Right Saw Blade for My Project?”
To avoid blade failure and get the most out of your new saw blade, remember these blade break-in tips:
- Choose the proper band speed for material to be cut.
- Set the beginning band feed rate at 50% of normal/recommended feed rate.
- Begin the first cut and once 50-70 in2 of material has been cut, gradually increase feed rate to normal.
- If chatter/noise occurs, adjust cutting speed.
To learn more about the different types and brands of saw blades we offer, reach out to M&M Sales & Equipment representatives or stop in at one of our four locations in Texas.
The Rise and Fall of Crude Oil Production and Its Impact on the Permian Basin
All eyes are on the U.S. oil production rates and prices per barrel. Where will they go next?
According to an article published in Forbes magazine, U.S. Crude Production Returns to Record Levels, the recent attacks on Saudi’s oil infrastructure had a lesser impact on the world’s oil markets than expected. The reason? Over the past decade, oil production in the United States has experienced steady and, at times, explosive growth. The resulting oil production stabilized world markets despite recent events and has kept all eyes locked on the future of U.S. oil. The price of West Texas Intermediate (WTI) did experience an increase of $2, however, bringing the average price to $57 per barrel. (Dallas Fed: October 2, 2019)
You may remember an article we posted over the summer that discussed pessimism over oil well productivity. We shared an article from Oil & Gas Journal (OGJ) where Rystad Energy indicated that they could not find sufficient evidence that oil and gas well performance showed any signs of decline. They also concluded that average new production per well matched all-time highs found earlier in the year.
Production growth did appear to be slowing during the summer months, but it has started to rise a bit. Speaking to the constant ebb and flow of oil production, the Energy Information Administration (EIA) reported the final week in September showed weekly U.S. crude oil production numbers that tied the all-time production record of 12.5 million barrels per day (BPD) experienced a month prior.
At the beginning of October, the numbers fell slightly but remained 1.3 million BPD higher than the previous year. During the second week of October, the EIA reported the 332,000 BPD decrease in U.S. crude oil production in July was geographically isolated to the Federal Offshore Gulf of Mexico. This was due to Hurricane Barry and is likely temporary, they say. They also anticipate production to continually increase each month resulting in 13 million BPD in December 2019.
So, where does that leave the Permian Basin and West Texas?
Well, that’s tough to say. Robert Rapier, a senior contributor for Forbes, reports that nearly half of the reported 400,000 BPD increase since the summer months hail from the Permian Basin. However, Permian rig counts continue to fall and that seems to be in line with overall U.S. counts (see chart below). On the other hand, production is climbing and well completions have picked up partly due to recent pipeline capacity.
Baker Hughes Rig Count as of Oct. 4, 2019:
| Area | Last Count (2019) | Count | Change from Prior Count | Date of Prior Count (2019) | Change from Last Year | Date of Last Year’s Count (2018) |
| U.S. | Oct 4 | 855 | -5 | Sept 27 | -197 | Oct 5 2018 |
| Canada | Oct 4 | 144 | +17 | Sept 27 | -38 | Oct 5 2018 |
| International | Sept 2019 | 1,131 | -7 | Aug 2019 | +127 | Sept 2018 |
Source: Baker Hughes
With all the ups and downs, there’s quite a bit of chatter about a slowdown throughout the Basin. We caught an article on Bloomberg that spoke about the loss of oil jobs in the region, fewer hotel proceeds and a 19 percent drop in drilling. A drop that’s affecting everything from the building of well-site roads to the chemicals used to kill bacteria during hydraulic fracturing.
Slowly, unemployment rates are creeping up as well. According to the Dallas Fed, the rate was 2.3 percent in August, an increase of 0.3 percent from May. The Permian Basin’s unemployment rate is still well below the Texas rate of 3.4 percent, but employment growth has slowed. The number of home sales are also slowing, but the prices of homes are climbing, bringing the median home price to $308,634.
These projections are a far cry from the hustle and bustle the region experienced just a year earlier when radio ads were filled with companies looking to fill shale-patch jobs. We’d love to hear your projections for what’s next in the Permian Basin. In what ways are you feeling the impact of the everchanging oil market? How will this impact your business? Share your thoughts in the comments below.
What do you expect in 2020?
Please answer these two questions. Your response is anonymous.
Is Pessimism Over Oil Well Productivity in West Texas Premature?
You may recall a recent post titled Steady as it Goes for Permian Basin Rig Counts where we shared April 2019 oil rig count data as supplied by Baker Hughes. We also asked the question, “Why has there been a slowdown in oil drilling?” and countered it was likely due to spending cuts from independent exploration and production companies. At the time, it appeared that crude prices would continue to go down. However, the latest rig-count report shows the number of oil rigs in the Permian Basin is holding mostly steady.
Let’s take a look at the most recent Baker Hughes report from August:
The U.S. Rig Count is down four from the last count performed in July of this year and down 104 from the count performed in August of last year. According to recent reports from Baker Hughes, Midland County, Texas, gained two rigs and the Permian Basin lost one. Texas is up one rig totaling 455.
See chart below for additional details.
| Area | Last Count (2019) | Count | Change from Prior Count | Date of Prior Count (2019) | Change from Last Year | Date of Last Year’s Count (2018) |
| U.S. | August 2 | 942 | -4 | July 26 | -102 | August 3 |
| Canada | August 2 | 137 | +10 | July 26 | -86 | August 3 |
| International | June | 1,138 | +12 | May | +179 | June |
Despite somewhat favorable results, there is still some pessimism regarding well productivity in the Permian Basin. Many firms fear the state of oil and gas well performance in West Texas due to the depletion of core inventory, growth in the share of child wells and well-spacing challenges. However, we discovered an article featured in Oil & Gas Journal (OGJ) that may shed some light on why that pessimism may be premature. In it, OGJ reports that Rystad Energy is holding firm on their outlook for the basin. In fact, Rystad’s Head of Shale Research, Artem Abramov, was quoted as saying, “We conclude that the average new production per well in the basin matches the all-time highs seen in early 2019 despite depletion concerns.” View the entire article here.
One potential downside associated with the increase of crude oil production in the Permian Basin is the likely increase in natural gas. According to World Oil, current constraints on natural gas pipelines may reduce oil drilling in areas that have heavy concentrations of natural gas. That said, Pipeline & Gas Journal reports that pipeline operator Magellan Midstream Partners LP expects new pipelines to be in the works to help improve the crude oil bottleneck in the Permian Basin.
Share your thoughts on today’s oil and gas news. How will it impact your business?
How to Choose the Right Drill Bit for Your Application
Drill bits. One of the most useful and versatile tools that exist. You may be surprised to know that using the wrong one can not only hinder production, but could be costing more than you may think. That’s why it’s important to choose drill bits that are optimized for the application. Otherwise, you’re likely to be replacing the bits and the tools too often. Not only that, but you risk damaging the workpiece and having to start over.
Machinists and fabricators use drills daily, and proper drill bit selection can save both time and money. If you are looking to get the best machining result, here are some things to consider when choosing a drill bit for your next project.
Choosing the Right Drill Bit for the Job
There are countless drill bits on the market today, making selection both difficult and time consuming. Two main categories of drill bits include standard bits used with handheld drills or drill presses and boring machine bits that are used in automated machinery like drill banks and CNC machines. Here are some brief explanations of various types of drill bits.
Twist Drill bits are the most common and can be used in a variety of everyday tasks from drilling woods, metal and plastic. They are made from High-Speed Steel or Carbon Steel.
Counterbore bits create a flat bottom blind hole with a smaller diameter center hole. These are often used to create a recess that can hide a fastener head.
Countersink bits create a tapered surface hole with a smaller center hole to allow fastener to sit flush with the material.
Flat Bottom Boring bits are similar to counterbores, but do not have a center drill.
Specialty bits are essentially all bits that don’t fit into the above categories and can be used with glass, tile or other specialty materials.
Coolant Through Drills have coolant ports that run through the drill and feed coolant to the cutting edge, allowing for faster cutting and improved chip evacuation. Used in high performance drilling operations.
Exchangeable Tip Drills have replaceable carbide heads or tips that saves time when changing tools and saves money over larger solid carbide drills. They also boost productivity in many machining applications.
Spade Drills have spade inserts that allow for cost effective drilling of deep holes and large diameter holes. They also run well on older machines and at lower speeds than high performance carbide drills.
Inserted Drills have multiple carbide inserts that handle the metal cutting. They are faster than HSS and cobalt drills, are cost effective and many can be used to “turn” the hole to a larger diameter than the drill size, much like using a boring bar in a lathe.
Understanding Drill Bit Materials
Certain tooling and machining operations require specialized drill bits that allow for effective drilling, without burning out too quickly. Below, you’ll find some common drill bit materials and their uses.
Cobalt (HSCO): Despite being more brittle than HSS, cobalt drill bits are ideal for drilling harder steel as well as stainless steel grades. They are often more expensive than other drill bits but tend to last longer.
Carbide (Carb): Carbide is considered the hardest and most brittle drill bit material and can cut hardened steel, stainless steel and aluminum with ease. Ask if the CoroDrill 860 from Sandvik Coromant is right for you.
Diamond: These bits are effective for drilling tile, stone or other hard material and the use of water is recommended to prevent damage to the workpiece or tool. These are costly, so they are recommended for use in very specific tasks.
High-Speed Steel (HSS): High-Speed Steel bits are harder, more resistant to heat and can drill metal at greater cutting speeds than high-carbon steel. Ask about our HSS drills from Morse or Drillco that are available in a variety of lengths, including jobber and stub/screw.
How Flute Design Impacts Cut
Flutes are grooves that are cut into the body of the drill bits to provide cutting surfaces, permit removal of chips and allow cutting fluids to reach cutting surfaces. There are different variations of flutes, but here are some common ones you should know.
Standard: Standard flutes are the most common and have a circular cross section.
Parabolic Design: This refers to the open geometry and faster spiral of a twist drill bit. It offers improved chip evacuation, increased feed rate, shorter cycle times and reduces the need for a peck cycle. It’s also less likely to jam and break.
Straight Flute: Used when drill rigidity is more important than chip evacuation, especially in short chipping materials. Also, can be used when the workpiece is spinning instead of the drill itself.
Source: CNC Cookbook
Drill Point Coatings Explained
Coatings reduce friction when drilling. That reduction of heat helps to protect the drill bit and improves the flow of material out of the hole. See below for a brief explanation of various drill point coatings.
Black Oxide is a black surface coating that improves heat resistance, reduces friction and increases chip flow.
Bronze Oxide coatings help to increase tempering and relieves stress on the bit.
Bright drill points do not have a coating, but they are polished for increased chip flow and can be used in plastics, woods and aluminum.
Titanium Nitride (TiN) coatings help drills run faster and increases tool life because it increases the hardness of the bit. Look for drill points to be gold in color.
Titanium Carbonitride (TiCN) is ideal for stainless steel, cast iron and aluminum as it is harder and more wear-resistant than other coatings. Look for drill points to be a blue-gray in color.
Titanium Aluminum Nitride (TiALN) is ideal for use in high-alloy carbon steels, nickel-based materials and titanium, but should not be used for drilling aluminum. Look for drill point color to be violet.
“Man must shape his tools lest they shape him.”
Choosing the wrong tools can impact your productivity and profitability. With so many options out there, choosing the right cutting tools can be overwhelming — but it doesn’t have to be. We take pride in the level of knowledge and experience the M&M Sales & Equipment team has to offer our customers.
If you’re looking to improve production in your facility, but don’t know where to start, give us a call or stop in at one of our four locations. We offer a variety of quality drills from top-rated brands like Drillco, Morse, Guhring and Sandvik Coromant. Whatever your production needs are, M&M Sales & Equipment can help you get it done. Contact us today.
How Do I Choose the Right Saw Blade for My Project?
Every facility can improve productivity, profitability and safety with the proper tools. Cutting tools like saw blades are no different. Many of the saw blades on the market are manufactured with technology that allows them to cut faster and cleaner and stay sharper longer.
Yet, it’s not always cut and dry when it comes to choosing the best cutting tools for the job. Choosing the right cutting, forging or processing tools is important whether you’re a professional working in an industrial facility or you’re a weekend warrior taking on a home improvement project. Either way, we want to be sure you have the tools you need to get the job done well.
Next time you’re choosing a saw blade, ask yourself these simple questions:
What kind of saw will be used?
All saws, including band saws, circular saws, radial-arm saws, chop saws or compound miter saws require different types of saw blades. Using the wrong one can not only impede production, it can be downright dangerous and ruin your tool as well. No one wants to experience downtime when trying to complete a project. Having to stop to repair or replace your tools can cost you time and money.
What material will you be cutting?
Light-gauge steel, stainless steel, natural stone, concrete, ceramic tiles and various kinds of wood all require blades made from specific materials. Use the wrong saw blade material and you may as well be using a butter knife. Some of the most common saw blades for metalworking include Carbon Hard Back, Carbon Flex Back, Bi-Metal, Carbide Tipped and Grit Edge. We carry a huge selection of metal-cutting tools and supplies from industry leaders like LENOX, Starrett, Arntz, Fein and Evolution.
How often will the saw blade be used?
It’s just common sense that the more you use a saw blade, the quicker it will dull. Remember to regularly inspect your blades for wear. For daily cutting practices, implement an inspection schedule into your standard operating procedures. This is especially important in manufacturing facilities and plants when there are multiple shifts. For safety be sure to keep a changeout log handy, so that the next person to use the tool will know exactly when maintenance is required.
M&M Sales & Equipment recommends these preventative maintenance and safety tips:
- Always wear safety glasses, goggles or face shield.
- Clamp your workpiece to keep both hands on the cutting tool, if applicable.
- Clear blades of debris and replace blades regularly.
- Double-check and test parameter settings (speed and feed rate).
- Use guarding when appropriate.
- Check coolant levels.
Our partner Lenox offers a blade selector on their website to get you started. Access the Lenox Blade Selector here. We can help you select exactly the right cutting tools you need to work safely and effectively. Just contact us and a member of our staff will happily answer any questions you have. M&M Sales & Equipment is here with expert advice when you need it. Just stop in or call one of our four locations in Odessa, Lubbock, Amarillo and Ft. Worth.
Steady as it Goes for Permian Basin Rig Counts
How Rig Counts Indicate Oil and Gas Economic Health
Since 1944, Baker Hughes has been supplying data on rotary rig counts to give insight into the economic health of our energy industry. Beginning in 1975, the company started providing monthly international rig counts, which offers a more in-depth look into the drilling industry. Baker Hughes Rig Counts has been consistent for more than 70 years and is considered a good measuring tool for demand. The active rig count is also a leading indicator of the number of products used in drilling, completing, producing and processing hydrocarbons (oil and gas).
Let’s look at the most recent summary count from April 2019:
We know that the oil industry is a never-ending cycle of highs and lows, and this latest report shows U.S. oil rig counts are a bit unsteady. According to an article published by Reuters, U.S. energy firms reduced the number of oil rigs operating to the lowest level in almost nine months.
Why the slowdown in oil drilling?
It may be due to independent exploration and production companies cutting spending to focus on earnings growth instead of simply upping output. It’s projected that crude prices will drop going further into 2019, so firms are bracing themselves for the change.
For the Permian basin however, numbers are holding steady compared with the rest of the country. The Permian Basin’s active rig count is staying steady at 459, down one from the prior week and up one from the prior year.
That’s good news for Texas and both the businesses and families impacted by the ebb and flow of the energy trade. We have a vested interest in the economic health of the industry, that’s why we thought we’d pass on this bit of information to our customers and friends. Be sure to stay up to date on the issues that matter to you by checking out our blog.
If you ever need help selecting the right cutting tools, abrasives or safety supplies, contact M&M Sales & Equipment. We’d be happy to help.
See Dormer Pramet Metal Cutting Tools in Action (Video)
At M&M Sales and Equipment, we’re always on the hunt for innovative products that can save our customers time and money.
Dormer Pramet is one of the oldest specialist manufacturers of engineered cutting tools. Dormer Pramet has been a game-changer when it comes to their selection of cost-effective metal cutting tools.
With their combined 150 years of industry experience, we feel confident showcasing Dormer Pramet’s expertise and products. Have a look at these innovative products that help you take control of your difficult cutting materials:
Hydra High-Performance Replaceable Head Drills
Dormer Pramet introduces the Hydra High-Performance Replaceable Head Drill. It’s made from tough micrograin carbide and a hardened steel body that makes it resistant to wear and corrosion. Plus, one body fits multiple heads for multiple materials — saving money in inventory costs and overhead. Other impressive features of this drill include superior hole surface finish, efficient coolant delivery and reduction of forces when it exits the workpiece.
Hand Drilling HSS Stainless Steel – A108 Drill
Do you find that your industry-standard drills blunt quickly and have a hard time penetrating stainless steel? If you find yourself going through more drill bits than you’d like and constantly having to stop drilling to lubricate, you’re going to want to look at this. The A108’s material-specific geometry cuts through stainless steel, making hand drilling easier and faster than ever. And its steam-tempered finish delivers improved wear resistance, saving you expensive replacement costs.
M&M Sales and Equipment is committed to being your go-to source for all your cutting tools, abrasives, safety supplies and more in West Texas, with locations in Odessa, Lubbock, Amarillo and Ft. Worth. If you’re interested in discovering whether Dormer Pramet is the right solution for your facility, contact M&M Sales and Equipment today.
2019 Oil Forecast in West Texas: Boom Expected to Continue
West Texas is experiencing yet another comeback within the boom-bust oil industry. The revitalization is welcome to residents and businesses alike who hope activity continues to build on economic improvement through the region.
Just 10 years ago, West Texas was dubbed a “dead area” by many in the oil industry. But today, oil pumps churn from countless oil wells throughout the Permian Basin. According to the U.S. Department of Energy, the Permian Basin is expected to produce 3.9 million barrels of oil per day (bopd) in 2019. That accounts for about one-third of all crude oil produced in the United States and the numbers are expected to grow, reaching over 9 million bopd by 2021.
Domestic numbers are expected to keep increasing, with the potential to reach a record 14 million bopd by late 2021, according to the U.S. Energy Information Administration’s Annual Energy Outlook (AEO 2019). The bulk of that growth comes straight from the Permian Basin, an area that covers more than 75,000 square miles in West Texas and Southeastern New Mexico.
The reason for this massive growth? The Permian Basin has benefited from technological improvements and more cost-effective hydraulic fracturing that allows producers to extract more crude oil from the shale formation. A recent report by CNBC has pipeline capacity increasing triple-fold by 2021, from 3 million to 9 million pipelines. The increase in capacity should help unclog the transportation bottleneck the Permian Basin has been battling, helping producers move more oil into the Gulf Coast and on to refineries and ports worldwide.
As crude oil production increases and domestic consumption of petroleum decreases, the AEO 2019 report also anticipates the U.S. will become a net energy exporter by 2020. In fact, the U.S. will likely pass Saudi Arabia and Russia as the world’s leading oil producer. But it’s important to remember that wells dry up rather quickly and require more drilling to keep pace, so technological improvements must remain a major consideration.
What this means for West Texas Oil & Gas
Short-term “man-camps” are springing up everywhere and flashy new billboards dot the highway, advertising Rolexes and other high-ticket items to oil workers pulling in six-figure salaries.
Compared with Gulf Coast barrel prices, oil in the center of the Permian Basin (Midland and Odessa) is priced lower but steadily climbing. West Texas Intermediate crude rose from $56.79 a barrel in the beginning of March and rose to just over $60 by the third week, while Louisiana Light hovers just over $68 a barrel.
It’s not hard to remember the effects of falling oil prices in 2016. Many workers in West Texas were displaced when prices dropped to $30 per barrel. The drop led to massive layoffs and declining rig counts. Fortunately, rising oil prices are a good sign for employment rates and wages. Entry-level jobs are boasting $15 an hour pay with full benefits packages, but motels have jacked up the rates to hundreds of dollars a night. Food and housing costs are also soaring.
With any boom, the threat of a bust is always on the minds of Texans, but local officials and industry executives think it’s different this time. The advances in fracking has made oil extraction possible in areas deemed impossible in prior years. Now the problem isn’t finding oil, it’s making sure the infrastructure is there to handle the amount of oil and gas that’s being extracted.
At M&M Sales and Equipment, we support our local communities, oil workers and the businesses that supply them. That’s why we believe it’s important to keep our fingers on the pulse of what’s happening in the industries that impact us all. Stayed tuned here on our Blog or visit us on social to stay up-to-date on the industry news that matters to you.
We are your cutting tools specialists. Since 1962 we have been here to help you increase your profitability and productivity. Have questions? Reach out to us by clicking here.
Hand Taps vs Machine Taps – Differences?
A brief knowledge drop from our friends over at North America Tool
Hand Tap and Machine Tap are terms that don’t always mean what you think! These are stale industry legacy terms. Originally meant to define a purpose, they can be misleading. They should not define a tap’s modern method of use.
According to some handbooks, the term Hand Tap has traditionally been applied to fractional-size taps having a standard general-purpose length. Most manufacturers don’t limit the description to fractional sizes. Assumed to be straight-flute, these are taps whose flutes are provided as a space to accommodate chips created as the tap cuts. Some research suggests the terminology originated in the early 1800s, when most threading applications were literally done by hand. Yet, when the Machine Age hit its stride after the 1880s, the term Hand Tap was still used for taps that were unchanged in design, and now used on machines, as well as by hand.
As machine tapping is a much faster operation than turning a tap by hand, chip evacuation became more difficult to control. Machine taps would become defined as those with flutes designed with geometry to direct the flow of chips out of the hole. Spiral-point and Spiral-fluted taps fit this category. These alterations in flute geometry improved tap efficiency. Today, with the increasing use of coolant-holes in taps, and external directional coolant-flow, a straight-flute hand tap can offer a similar assist with chip evacuation, and yet it is still perceived by some as different than the machine tap.
Don’t get hung up on a name. Both hand and machine taps sold today are manufactured from the same base materials, and can be used by either method. The decision of which design to use should be influenced by the needs of the job.
P.S. Check out the cool apps North American Tool has to help with tapping and tap design!
