The Best Drilling Rigs & Equipment for Starting a New Drilling Operation

Nate Jones, CPCU, ARM, CLCS, AU
6 days ago
2 min read

Starting a new drilling operation requires a smart equipment strategy. The right rigs and support gear improve safety, productivity, and profitability. But before you invest in rigs and machinery, it’s critical to understand the equipment that will help your business compete—and how proper insurance protects those assets.

At Wexford Insurance , we work with oil well drilling businesses across the nation to ensure your equipment and operations are insured to meet operator expectations.

1. Mobile Drilling Rigs

Mobile drilling rigs are the backbone of many startup drilling operations. They are versatile, designed for quick relocation between well sites, and suitable for a wide range of formations.

Common options include:

Truck-mounted rigs – Ideal for shallow to mid-depth wells and remote access.
Skid-mounted rigs – Easy to transport in sections; great for rugged terrain.

Choosing the right rig depends on well depth, lease access, and expected project frequency.

👉 Tip: Before purchasing or leasing rigs, consider operations planning to match equipment with intended basins (e.g., Permian, Eagle Ford, Bakken).

2. Derrick or Mast Systems

Whether you’re operating a truck rig or larger land rig, a solid derrick or mast system is essential for:

Stabilizing drill strings
Raising and lowering drilling tools
Supporting drilling loads safely

A quality mast system improves uptime and safety—critical for meeting operator requirements and protecting your crew.

3. Mud Systems & Circulation Equipment

Efficient drilling requires proper mud systems to manage cuttings and stabilize the wellbore:

Mud pumps
Shale shakers
Degassers
Mud tanks

These systems help control formation pressure and improve drilling performance—especially in deeper wells.

4. Drill Pipes & Drill Collars

Drill pipes and collars transmit torque and weight to the drill bit. When choosing:

Match pipe specifications to formation type
Balance strength with weight for operational efficiency
Inspect and rotate tools to extend service life

High-quality drill string components reduce downtime and extend overall rig life.

5. BOP (Blowout Preventer) Systems

Safety is paramount. Blowout Preventers (BOPs) are non-negotiable for deep drilling or high-pressure formations. These systems:

Seal the wellbore in emergency conditions
Are often required by regulations and operator contracts
Reduce the risk of uncontrolled well events

Invest in modern, tested BOP stacks and maintenance programs.

Protecting Your Equipment with Insurance

Owning or leasing rigs and drilling equipment represents significant capital investment. Equipment breakdown, theft, fire, or weather events can derail your operations and cash flow.

At Wexford Insurance, we help drilling contractors protect their: