After a canceled project, West Texas operator Wagner & Brown, Ltd. was left with surplus OCTG inventory for years until they partnered with CRA. Through a collaboration with digital technology company, PipeSearch, CRA provided a turnkey surplus solution. They took possession of the idle assets, performed PipeFacts quality inspections, and marketed it through the platform resulting in a sizeable sale in just a few months.
Wagner & Brown, Ltd. purchased pipe for a deep gas project that was never drilled. Market economics changed, and projects were pushed out or canceled. Several years passed, and the material sat in a yard, unused and depreciating. Eventually, it was deemed surplus and earmarked for sale, but it needed a quality check to verify material specifics, condition, and traceability.
Through conversation, CRA was recommended to Wagner & Brown as a resource to help move their material and maximize return on the investment. Most appealing to Wagner & Brown, CRA offered a turnkey surplus solution through their collaboration with PipeSearch. CRA would review the material specifics and provide a PipeStats report detailing what Wagner & Brown could anticipate receiving for their material. After agreeing to those facts and figures, CRA would perform field inspections, technical analysis, and operational analysis that would be processed through PipeSearch’s proprietary quality verification process. Based on those results, CRA would then orchestrate any maintenance needed to ensure the quality and integrity of the pipe and make it marketable. Lastly, the material would be listed on the PipeSearch site and marketed to their vast global network.
“Having it turnkey, having it quality-checked, having somebody who would take care of the pipe, store in their yard, and then market it through [their] system was something that was very good for us.” – Wagner & Brown, Ltd.
Wagner & Brown, Ltd. decided to move forward, allowing the CRA team to sell its assets through PipeSearch. A PipeStats report was sent providing market intelligence to set return expectations and enabling Wagner & Brown to decide the best course for handling their cra OCTG investment. “It was good that it had a floor that we could anticipate, that we could receive once, and if, we arrived at a sale,” said Lawrence Rhodes, Wagner & Brown, about the PipeStats report. The report provides details on market demand, known alternatives, and market trends, then estimates your cost recovery options based on a function of time.
Once the course of action and return expectations were set and agreed to, CRA performed a PipeFacts quality inspection on the material. Field inspections, technical analysis, and operational analysis were performed, providing ultimate clarity to the product quality. Based on the results of this inspection, CRA took steps to ensure this aging pipe met current industry standards, making it more marketable. CRA then marketed the material through the PipeSearch platform to its network of operators and end-users, landing a sizeable sale in less than five months.
This case study highlights the benefits of the turnkey surplus solution made possible through CRA’s collaboration with PipeSearch. They can take idle assets with aging specifications, perform PipeFacts and any necessary maintenance, and quickly redeploy them into another application for a maximized return on investment.
“It’s been a very good experience overall, and I would highly recommend the services [CRA and PipeSearch] provide.” – Wagner & Brown, Ltd.