Oil and gas: the merits of outsourcing

Oil and gas exploration and extraction relies on long, thin, durable tubular components to achieve the best possible results and maximise operations. These components are usually outsourced and the reasons for this fall into two main categories.


Firstly, outsourcing the production of oil and gas extraction components means that companies have more time and money to spend on the design and development of new and improved equipment to keep up with ever increasing demands.

When the time comes for the exploration and extraction equipment to be installed, the parts are ready-made and ready to roll. This two-step system allows for further exploration while the construction and implementation of a planned oil or gas extractor is ongoing.

Secondly, only a very limited number of engineering companies have the expertise, machinery and tools to create the precision, high-capacity metal tubing that fossil fuel industries need. This is due to the scarcity and expense of the machinery and tooling required to achieve close tolerance, long, precision bores to achieve a size range capable of satisfying an industry which requires such diverse materials and products of varying proportions and complexity.

Having parts custom-made is often more productive and cost-efficient than using off-the-shelf stock as this allows for design changes and developments along the production and testing process. Outsourcing machining means that manufacturing flow-tubes, housings, rotors, and fittings for an oil or gas extractor is simplified.

Hone-All Precision, based in Bedfordshire, manufactures an extensive range of oil and gas components and equipment to a wide range of customers throughout the entire supply chain to bespoke order.

The AS 9100 approved company is equipped to work with the industrial-grade steel and super-alloys used to construct durable oil and gas downhole equipment. Through their application of deep hole drilling, boring and honing technologies, outsourced, machined pipeline components last longer, withstand higher pressures, and can survive higher levels of geological stress.

Orders are usually from free issue material but as pressures rise to reduce supply chains, more are requesting Hone-All to order materials and treatments and manage the entire process – a service Hone-All is more than happy to provide – backed by its Redant PCS production control system.

This comprehensive manufacturing software, which guarantees full traceability of all materials and processes completed at every stage of manufacture, has won the endorsement of major oil and gas and aerospace suppliers at every audit – hence the reason for Hone-All’s numerous and extensive client approvals list including BAE Air Systems, Rolls-Royce Nuclear, Babcock, Collins to name but a few.

Complementing sound business practices and the wide capacity available at the family run business, Hone-All is renowned for exemplar levels of customer service, on-time delivery and quality conformance.

In addition to customer testimonials, the business has also recently won the Best Sub-Contract Machining Specialists Award in the SME News Energy and Power Awards 2019, another testament to the overall customer experience and quality of product supplied.

Hone-All’s wide range of modern, CNC equipment has resulted in the company now being able to offer the supply and manufacture of components up to 3m in length. Having the ability to deep hole bore, gundrill, hone and turn all within the one facility has also resulted in the company developing products in partnership with its customers to ensure the most efficient, cost-effective outcomes.

“These collaborative relationships have resulted in numerous benefits for our customers such as lowering costs by reducing the size of the material ordered through the inherent accuracy of our state-of-the-art deep hole drilling and boring equipment; increasing accuracy when multiple bores are required via our in-house developed tooling; and enabling the manufacture of tubes with ultra-thin walls – made possible through knowledge and experience built up over many years,” affirms Hone-All director, Andrea Rodney.

“Also, the availability of R&D tax credits has enabled us to research, develop and trial a variety of different machining methods and tooling at a lower financial risk,” she adds.

“Prior to this, we would have tended to play safe as when you are working with expensive materials such as Inconel and titanium, it is difficult to justify attempting what has not been attempted before – the risk is just too costly.

“The R&D tax credit scheme gives a least a little security in that some of your expenses can be met – but the gains when the trial succeeds are huge and create long-term benefits for both our business, our customers and the industries we serve.”

On the investment front, Hone-All has recently taken delivery of an additional Pinacho 2m CNC lathe from TW Ward CNC, has another 3m lathe from the same supplier on order which is due for installation in January 2020 and is currently researching to buy a new CNC gundrilling machine to increase current capacity.

“Constant reinvestment and continual improvement in both the skills and services we provide have been the key features of this business for the last 25 years,” Ms Rodney concludes. “2019 has been our best year ever – both in terms of financial performance and business KPIs.”

Hone-All www.hone-all.co.uk

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Hone-All

Approved to BS EN 9100: 2009 & ISO 9001:2008 standards, Hone-All Precision specialise in Deep Hole Boring, CNC Gundrilling, Deep Hole Drilling, CNC Turning, and CNC Honing and also manufacture bespoke rollers for the print, packaging and converting industries. Continual investment and improvement combined with a commitment to excellent customer service, flexibility and absolute quality all contribute to their ongoing success.
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