Buddy Sebastian is vice president and general manager of Sebastian and Sons Well Drilling based in Springport, Michigan. The long-time industry friend and president of the Michigan Ground Water Association has spoken at industry events about job costs, company sustainability and the future of drilling companies. We brought him on Drilling In-Site, episode 22, to discuss how each of those topics dovetails with major equipment decisions, like whether to upgrade that old drill rig or pump truck in the yard.
“You’ve got to ask the right questions of your business,” Sebastian says. “How much work are you doing with that equipment? I noticed in our industry, at least in Michigan, vacuum trucks are becoming a backhoe. Everybody’s got a vacuum truck now. … How much work are you going to do with a vacuum truck? Well, if you’re new to it, who knows? My suggestion would be, well you might want to look at that used one before going you go on to $250,000 vacuum truck and use it three times next year.”
This episode covers topics like:
- How to always plan for (and be ready for) that next big drilling rig purchase. He talks about being the kind of company that saves for future equipment needs, even years before those needs arises.
- Working backwards from your company’s pricing to better prepare for both big equipment acquisitions and retirement.
- The cost-benefit analysis of maintaining older equipment versus upgrading to new.
Check out today’s episode to hear more. Watch the video here or listen to the audio version of our conversation at www.thedriller.com/insite-podcast. You can also find our show on Apple Podcasts. Search for Drilling In-Site, then hit Subscribe.
Stay tuned for part two of our discussion with Buddy Sebastian. Episode 23 or Drilling In-Site publishes in two weeks. We continue exploring the rig-buying process by weighing new versus used and buying versus leasing. We also talk about common pitfalls contractors make during the acquisition process.
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Sebastian and Sons Well Drilling website: www.sebastianwell.com