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Lease operator opportunity to think over

5,454 Views | 18 Replies | Last: 6 yr ago by aggie4231
AgOil55
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Howdy!

I have been away for a while and always find myself coming back for the best advice from Texas Ag family.

Basically I am an experienced mwd / lwd and make great money. But I also have toddler children and find myself missing everything. Depressing!

So one of my good friends asked if I'd be willing to move and take a lease operator job which would allow more time at home and still have a decently paying job.

It will be a big haircut and still will be some what looking behind my back during a industry down turn but at least I won't fear it right away like I would in directional work.

Any advice? Any Ags out here that can share advice and shed more light on the position and what actual pay earnings are? Day to day duties and career outlook.

Is it much more stable oil industry job?

Any and all info is appreciated and I'm just trying to be home more then 20 percent of the year.



TommyGun
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AG
I think it's a good job and probably as stable as you can hope for in regards to field hand roles. With that said, it's still a highly scrutinized position and companies always seem to be looking for ways to lower their headcount in this space since it obviously makes up a big portion of LOE (lease operating expense).

Some companies have moved more and more to the contract pumping model which gives them the ability to flex up or down while others are looking to use more data analytics and run operations with a lean group of pumpers. It's not a position that is going away anytime soon but my advice would be to get in and embrace any new technology changes and try to become an all around technician that can be flexible. You want to be the guy that management chooses to test out new tools or data apps. I've seen guys really excel in this role and work their way up to operations managers or they'll become a specialist in an area like water management or artificial lift.

As far as pay goes I think someone green usually can start off in the mid to upper 20s per hour. Most guys I knew with experiences were all in the 30-40 range. Overall yearly pay depends on your schedule and the level of activity within the field. If you're in an older field that doesn't have much new well development then you probably can't expect too much overtime. If you're in a growing field with lots of development then you could be working just as much as you were in the MWD role.

Day to day activities can include gauging tanks, inspecting equipment, replacing parts, or coordinating well and maintenance services. Some operators have a route and a set number of wells that they are responsible for while others are being dispatched daily or weekly to different areas of a field.
RABAg04
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AG
I prefer Production over D&C, some don't but its a personal choice.

I would recommend learning optimization and different types of artificial lift. you can go lots a places if you know that.
SidetrackAg
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AG
Man, i miss that directional money. Having kids makes it really hard to be away.
AgOil55
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I will be brought on as a employee which makes things better im sure. Would hate to come on as a contract hand. No doubt I will miss the money in D&C, but thats something I will learn to live with, with time. Im sure the trade off to being around my kids more and atleast hitting my bed every night will make up for it.

Speaking of which, what is the yearly average for most lease operators?
AgOil55
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Tommy Gun, thanks for your response it really gave me a good insight. Whats usually the career path for a lease operator?

I heard promotions are very rare.
Petrino1
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AgOil I hire Lease Operators for the company I work for, an independent mid-size Operator. I can answer any questions you may have about the role.

In my opinion, Lease Operators have the most job stability/security out of anybody that works for an oil company. They are essential to maintain production. Very rarely will you hear about an oil company laying off their Lease Operators or field hands. Im sure you've heard it before, but the closer you are to the wellhead, the safer you are. Also, if you look at a lot of the Oil and Gas Operators career sites right now, you will probably see the majority of the openings be Lease Operators or Field Hands. So even in downturns, these guys are still getting hired.

Depending on the company, most Lease Operators make roughly $70-100k total compensation, also depending on how much overtime they work. Typical career path for a Lease Operator is:
Lease Operator > Senior Lease Operator > Artificial Lift Technician/Production Supervisor > Superintendent

Let me know if you have any other questions.
Petrino1
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In regards to your other concern, just like with any other job, if you are good then you will get promoted faster. Promotions are pretty rare in this environment, but the better you are the faster you will get promoted. I see it all the time.
TommyGun
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AG
AgOil55 said:

Tommy Gun, thanks for your response it really gave me a good insight. Whats usually the career path for a lease operator?

I heard promotions are very rare.


ea1060 pretty much nailed it in his post. Also, in regards to job security I think in general ea1060 is absolutely right that lease operators are typically the most safe when it comes to layoffs. However, I have worked in a couple of fields that saw 20-30% of it's operator staff let go when prices tumbled. Pretty much consistent with other layoffs that were going on at the time, but by no means were they spared from the chopping block. That's life in the oilfield though as we all know. Like he mentioned though if there were layoffs happening at one company then another was hiring. So in general the demand for these positions is pretty consistent. I've met 70 year old operators who absolutely love what they do. You don't meet too many people over 40 on a rig or frac crew.
Petrino1
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Also, I hope you really, really enjoy driving around. A lot of your time everyday will be spent in a truck driving around to the different well sites. It can be pretty rough, Ive seen guys fall asleep because theyre not used to it. Also, depending on where you work (i.e. North Dakota), weather conditions can be pretty brutal.
aggie4231
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AG
Follow up question.

I see a lot of lease operator positions for West Texas. For somebody who say lives in San Antonio or closer to the coast, would you need to relocate or is their a 2 on/off type of schedule?

Even though I just got back into MWD, I've been keeping my eye on lease operator positions and would consider a change in the future (sometime in a year depending on home life).
Petrino1
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Typically companies want people who are local and close to the job site. I doubt many places will let you rotate in and out for a Lease Operator job, especially those that require some type of on call shifts. These are more entry level type positions so they can find local people to train and do the work. From my understanding, normal schedules are either 5/2 or 8/6.
AgOil55
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is it required to be on a schedule? If I wanted to work the majority of my time is that something that can happen or not really?
Petrino1
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Im not sure I fully understand your question. But yes you will be required to work the normal work schedule. Some companies may let you work extra hours/days, but most will want want you to work a set schedule as to not burn you out. This is primarily the case for established oil and gas operators. If you work for some small, mom and pop wild west oil company then they may be more flexible about schedules and hours.
TommyGun
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AG
You kind of have to take on a different mindset when moving to production. Service companies on the D&C side of things like hands that are greedy and want all of the work thrown at them. It's good for both parties to keep them on the clock and they both make money with them being out there.

On the production side, companies want to see their operators work efficiently and within the defined schedule. Overtime is scrutinized more and too much of it can throw off an operating budget quick. Now if there is work to be done then they want you on call and available, but they won't just look for stuff for you to do on a weekend that can probably wait for Monday.

Now sure you can throw your name in the hat for more relief shifts. Guys working 8/6 schedules will usually have opportunities to cover for someone during days off. Again, this kind of goes back to what field you'll be working in and the level of activity. If you're operating out of the Delaware Basin then you could expect a lot of overtime. If you're operating out of the Green River Basin in Wyoming then you'll probably average out on a 40-50hr week.
AgOil55
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Thank you all for the feedback! Would everyone pretty much agree in the long run this position is better for the stability?

As I have been told, others spend years in the position and retire.
nonews09
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AG
Howdy! I've been trying like hell to land a lease operator position. I have 4 years of experience as a mud engineer and wanted something more stable. I'm having trouble just getting an interview here in The Eagle Ford. Any advice? Is the Permian the answer?
OilFieldIRI
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S
From what I have seen I think most companies prefer operators/employees to live relatively close to the field office or field itself. Lots of people I meet live in San Antonio and would have to drive over an hour just to get to the field office. Most larger companies have distance restrictions for employees.
If I run across anything I'll gladly post it in this forum.
The EFS is steady and picking up IMO but west texas is where it's at.
OilFieldIRI
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S
If you are still interested...

Chesapeake is needing 2 lease operators in south texas. One is based out of Carrizo Springs the other is out of Cotulla.
aggie4231
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AG
Thinking about revisiting this. I've been at home for 3 weeks and still waiting to go back to the field. Really thought getting back in MWD would keep me working and making consistent money.

Looking for anything that could base me out of San Antonio, or could lead to somewhere else over time.
TAMUG'04 Marine Fisheries.
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