Drill Stem Recycle
The Trusted Dealers of Repurposed Oilfield Pipe and Rod

The surplus of used drill and production material in the oil patch industry presents a confluence of opportunities and challenges. Reselling large volumes of used drill stem tubing and rods opens new revenue streams and is an ideal avenue for recuperating some of the sunk costs. But the act demands in-house proficiency and puts a strain on daily operations—a difficult trade-off in an industry where operational efficiency takes precedence.

Drill Stem Recycle (DSR), one of the pioneers in repurposing oil patch pipes and sucker rods, is on track to relieve the oil patch of this burden. The company caters to both ends of the spectrum— the oil patch industry and buyers. It ensures fair prices for materials and, alternatively, serves as a one-stop shop selling repurposed pipes for clients such as the construction industry and livestock handling facilities.

This dual focus gives the company a thorough grasp of the market’s pain points and opportunities both evident and dormant.

Bridging Supply and Demand

The oil patch typically relies on internal staff to handle surplus stock, but due to limited sales experience, they mostly make small-scale and one-time sales. This strategy inadvertently results in a supply shortage in the market despite surplus stock in many vendors’ inventories. A challenge DSR effectively addresses.

“Suppliers partnering with us can now refocus their time and resources on value-added tasks, while the customers can enjoy high-quality, cost-effective materials,” says Chad Gray, president of DSR.

Over the course of 20 years, it has developed strong relations in the market and is able to move large quantities, enabling vendors to empty their inventories in one go. The company is flexible enough to work with long-term and sporadic suppliers throughout North America.

DSR sources various material types from vendors that can be repurposed to fit the different needs of customers. This has led to the company maintaining a diverse supply of Red and Yellow Band pipes and sucker rods, which are available in different lengths and volumes, ensuring the right materials reach customers at competitive prices.

The repurposed metal is distributed across western Canada and the northern U.S. to customers in four primary segments—the oil patch industry, construction companies needing materials for pilings, manufacturers of livestock handling facilities and steel processors for recycling.

Operational Efficiency is in the DNA

DSR’s operations are built upon solid foundational pillars of technological capability and client-centric values.

It has the equipment and resources available to quickly clear out large quantities of material from vendors, ensuring that the suppliers are never troubled with dead inventory and space issues. The company even accesses third-party trucking companies for timely yard clearing, further enhancing operating efficiency. DSR recently proved its ability to handle diverse requirements by simultaneously supplying a large-scale customer who required almost 1,000 joints a week and a smaller construction company with specialized needs.

The company’s reliable services and customer-focused ethos have paid out in many long-term client relationships. A tenured team of experts well-versed in the industry’s supply and demand dynamics play a crucial part in this success. DSR prioritizes a stable and nurturing environment, leading to consistently low turnover rates. The approach ensures that the company can always meet the changing market expectations.

By focusing on core operations and maintaining solid relationships with vendors, DSR has relieved the operational burden of oil patches while promoting sustainable practices. It ensures a steady supply of high-quality repurposed materials, effectively contributing to the increased efficiency, sustainability and profitability of all involved parties.