Why Best Value Beats Lowest Price in Directional Drilling

In the directional drilling industry, the relationship between cost and value is often misunderstood. While procurement teams naturally gravitate toward the lowest bid, experienced operators know that the cheapest solution rarely delivers the best economics. This reality has shaped our approach at ProDirectional, where we’ve made a strategic decision to prioritize value over price—and the results speak for themselves.

The Hidden Cost of Going Cheap

When evaluating directional drilling services, it’s tempting to focus solely on the line item cost. After all, in an industry where margins matter and efficiency is king, saving money seems like an obvious win. However, this surface-level analysis often misses the bigger picture.

The true cost of a well extends far beyond the initial service price. It encompasses:

• Operational delays: When equipment fails or performance lags, every hour of non-productive time compounds costs exponentially
• Quality compromises: Subpar wellbore quality can lead to production challenges, requiring expensive remediation
• Hidden inefficiencies: Poor service can create cascading problems that affect drilling speed, accuracy, and ultimately, well economics
• Risk exposure: Cutting corners on service quality increases the likelihood of costly incidents and complications

These hidden costs don’t appear in the initial bid comparison, but they inevitably show up in the final well cost calculation.

Performance That Pays for Itself

At ProDirectional, we’ve taken a different approach. Instead of competing on price alone, we’ve focused on consistently delivering top-quartile performance—specifically, operating in the top 25% of industry benchmarks. This commitment to excellence comes at a competitive, though not bargain-basement, price point.

Why does this matter to our clients? Because superior performance translates directly to:

1. Faster well delivery: When tools work reliably and teams perform efficiently, wells reach total depth sooner
2. Reduced non-productive time: Quality equipment and experienced personnel minimize costly downtime
3. Better wellbore quality: Precision drilling reduces the need for corrections and improves production potential
4. Predictable outcomes: Consistent performance enables better planning and resource allocation

The Mathematics of Value

Consider a typical directional drilling project. If a lower-cost provider saves $20,000 on the initial bid but causes twenty hours of additional rig time over the course of the well due to equipment issues or performance problems, the “savings” quickly evaporate. With modern rig rates and associated costs, that extra time can easily exceed $85,000—turning a perceived saving into a significant loss.

This is where our value proposition becomes clear. By investing in:

• Premium equipment maintenance
• Experienced personnel
• Robust quality control systems
• Continuous innovation

We deliver reliability and performance that more than offset our competitive pricing. The result? Lower total well costs for our clients, despite not being the cheapest option on paper.

A Partnership Approach

Our focus on value over price reflects a fundamental belief: we’re not just service providers, we’re partners in our clients’ success. This means:

• Understanding that every decision impacts the bottom line
• Recognizing that our performance directly affects our clients’ economics
• Committing to solutions that optimize total well cost, not just our service fee

This partnership mentality drives us to continuously improve our service delivery, invest in new technologies, and maintain the highest standards of operational excellence.

The Long-Term Perspective

In an industry where relationships often span decades, the value-over-price approach creates lasting benefits. Clients who initially choose us for our performance often become long-term partners who appreciate:

• Predictable, reliable service delivery
• Consistent cost performance across projects
• A track record of continuous improvement
• True partnership in pursuing operational excellence

Making the Right Choice

When evaluating directional drilling services, we encourage operators to look beyond the bid sheet. Consider:

• Historical performance metrics
• Equipment reliability records
• Personnel experience and retention rates
• Innovation capabilities
• Overall impact on well economics

The evidence consistently shows that investing in quality service delivery reduces total well costs. It’s a simple equation: better performance, fewer problems, faster delivery, and lower total cost.

Conclusion

In directional drilling, as in many technical services, the adage “you get what you pay for” holds particularly true. While we respect every operator’s need to manage costs, we’ve found that the most successful companies take a holistic view of value.

We’ve built our reputation not on being the cheapest, but on being the best value. By consistently delivering top-quartile performance at competitive prices, we help our clients achieve their most important goal: delivering wells efficiently and economically.

Because in this industry, the cheapest option often comes with the highest price tag—and our clients deserve better than that.

To learn more about how our value-based approach can benefit your drilling operations, contact our team for a detailed discussion of your specific needs.