The third quarter has come to a close. Next year's budget is starting to take center stage. That being said, we're all still concerned about what we can make out of this year. In a downturn like this, living to fight another day is the mentality. But there is something you should be thinking about as we turn into the final quarter of this year... contract renewals.
Most oil & gas data contracts automatically renew at the end of the contract term. The only way to stop the renewal is to cancel it before the contract ends. That's not all though. Most of these contracts require a notification period to cancel. What this means is that if you wait too long to look at the contract, you're stuck. Each contract is different. You can refer to the termination clause of your contract for specifics.
Companies might sell you on long term contracts as a way to lock in a price for the future. This is only useful when you're working with a company who is notorious for raising prices each year. In reality contracts that lock you into a term do you no favors. We speak with customers who have signed 1, 2, or even 5 year contracts with some data providers. When we come to offer them the services they need for a fraction of the price, they are stuck and frustrated. At the end of the day these contracts serve to help the data providers lock you in. As many have told me, once you sign the contract you can kiss any decent customer service goodbye.
Data Without the Contract
WellDatabase was formed as a company that would bring modern technology and ideas to oil & gas. This includes axing the typical contract. All our plans are available month-to-month. We do offer discounts for an annual commitment, but you have the option. Several of our customers take advantage of our month-to-month plans. They only keep an active subscription while they need it. The great thing about WellDatabase is we maintain your saved data even if your subscription is not active. This means when you start your subscription back up everything is where you left it. This enables you to come and go as your business needs dictate.
What to do Now
If you contract is coming up for renewal, the best thing you can do is cancel it. Typically you will need to inform them in writing that you want to cancel at the end of the term. You can usually do this anytime within the contract period. There are several companies who can provide you with the service you need at a much better price. Worst case, you can get quotes and use them to negotiate your next contract. Whatever you do, do not just let it go. With oil prices where they are, you deserve better.
*Nothing in the blog should be considered legal advice. Please make sure to review your contracts with legal counsel before taking any actions.