Hello folks, I am in the oil & gas business on the marketing side. I am first hand seeing the boom in drilling activity and have been reading about the big demand for frac sand transport. I was interested in purchasing my own frac sand truck but was hoping there are companies out there I can then lease it to so they can manage the hiring of the driver, finding the sand supply and the well site market. Can anyone point me in the right direction? I appreciate your time and I apologize if I am in the wrong section. Also I am in Texas.
thanks.
Information needed
Discussion in 'Oilfield Trucking Forum' started by Truckfunder, Aug 28, 2014.
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It is a recipe for disaster IMO, to buy and attempt to operate a truck with no industry experience. My suggestion for someone like you, who may be financially capable of funding the operation (?), would be to start from scratch with the intention of building a profitable business model capable of standing on its own with or without your direct involvement. You would want to start out very well funded. I would suggest you start by hiring a manager for this company from the very start. Someone who does know the industry, someone who is capable and willing to drive the truck and get the business up and running, someone who is capable and experienced in the operation of a trucking company. This person will not come cheap and you will need quite a bank roll to do it, but it could be done.
To just buy a truck, stick a driver in it, lease on to a carrier and see what happens could be a very expensive educational experience. In fact the "see what happens" part could be spent "seeing" your bank account go dry. Just my advice. I've been around a bit. -
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truckfunder:
you are looking at about $70,000 for good used trailer, another (guessing) $20,000 for pto and blower installed, and a new coronado glider is around $120,000... then we start on insurances, plates, and permits... get that done and then you need to lease with a good outfit... after finding a truck driver (as apposed to a steering wheel holder) .... i.e. someone that can take care of the equipment, minor break downs, daily maintenance and drive the truck with the care an owner would.... hard to find... but they are out there and they expect premium pay.... fair way to pay is percentage , 35% of line haul and 60% of accessorial pay... (unloading, demur-rage, layover, ect.).... the driver should be able to get in touch with you 24 / 7 for major problems and have control over minor repairs (flat, blown tires, alternator failure , windshield replacement, ect.) probably by credit card ... he will need a fuel card / credit card separate of the company fuel card.... allows a little flexibility for the driver... and the list goes on... just food for thought.... if the above doesn't scare you away and you don't think you have to micro manage the operation day to day ,it can be done... i worked for almost 20 years with the same man... contracted to several different companies, doing different gigs but from day one i had input where the truck would be leased and other than the first truck i had input on the truck setup and color his choice in brand ( paccar) ... but i didn't have to bother him unless i couldn't handle the problem or it was over a set amount as far as minor repairs.. we usually talked two or three times a week... more sometimes, less others... that is the kind of relationship that will be profitable for both parties... -
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Truckfunder:
To be profitable in the trucking business, you must build an economy of scale. Per-truck profit is very slim (especially hauling sand, aggregates, or water); you have to have several units generating revenue to see a good ROI.
Because you are involved in O&G marketing, why not consider starting a small fleet to haul crude & condensate? Better rates, the market is not cutthroat, and wells will still be producing oil long after drilling and fracing have run their course. -
Can you buy stocks? Basic, Baker Hugues, Select, Pioneer, Oxy, or the company of your preference.
If you want to learn the business, you can move to the source and ask for a job. Learning from the inside is priceless. You have the brain, and we need brains in the oil industry!
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