HOUSTON, Dec. 17 -- Seismic activity is expected to remain soft, and low activity levels are expected to persist, according to the monthly PatchWork Survey released Dec. 9 by UBS Securities LLC analysts.
The survey results show that the seismic index often was below zero in 2003, and the latest survey showed the index at 6. UBS's survey uses an index ranging from 100 to 100. A value of zero or close to it indicates that no change is expected during the next 60 days.
"The seismic acquisition outlook remains bleak, in our view, but at least it does not appear to be deteriorating. Based on our survey, operators' seismic plans remain mired in negative territory," analyst James H. Stone said in a research note.
Of the oil and natural gas operating companies participating in the survey, 67% said they planned no change in their seismic plans for the US and Canada. Meanwhile, 19% said that they planned a decrease in the next 60 days while 14% planned an increase.
Meanwhile, an analyst for Jefferies & Co. Inc. recently said that seismic companies have started taking strategic steps to revamp themselves, but the industry needs consolidation to boost its long-term profitability (OGJ Online, Dec. 12, 2003).