G. Alan Petzet
Exploration Editor
Geophysics in support of worldwide oil and gas exploration represent a large and growing market, and geophysicists need to promote the many benefits of geophysical technologies.
World oil and gas spending has been static the past 5 years, but world seismic spending more than tripled to an estimated $5 billion in 1993 from about $1.5 billion in 1987, Society of Exploration Geophysicists Pres. Michael Schoenberger told SEG's annual meeting in Los Angeles last month. This spending level had been as high as $4 billion in 1981, he said.
Seismic spending grew during this period to an estimated 10% of world exploration/production spending.
This share of spending benefits geophysicists, who have the responsibility to list accurately the technical benefits of improved subsurface imaging, publish case histories, and demonstrate desirable rates of return.
Schoenberger, subsurface imaging technical coordinator for Exxon Production Research Co. in Houston, said 3D seismic surveying technology has "led to a revolution in how we do our business" and helped stabilize SEG's membership. This will be a year of modest increase for the society of 14,300 that once had nearly 20,000 members.
He cited published rates of return of 22% on Exxon's Gulf of Mexico 3D seismic operations with addition of an estimated 26 million bbl of oil equivalent and $47 million in dry holes avoided and 33% on Exxon's Malay basin 3D seismic operations with 100 MMBOE added.
An SEG survey showed that as of 1991 more than 97% of world geophysical spending was for oil and gas exploration and production, he noted.
INTERNATIONALIZATION
SEG is in the midst of a major push to broaden its international scope, Schoenberger said.
Overall makeup of its membership has changed little since 1976, with members employed by major and independent oil companies still representing about half the total. Since 1976 the number of members from universities has doubled to 12% of membership, and manufacturing/software ranks grew to 5% from 1%.
Two thirds of members reside in the U.S., up from only 15-20% in the late 1970s.
Schoenberger said 71.5% of the society's membership reported involvement in worldwide operations, compared with only 19.6% that work only in the U.S.
SEG has moved this year to associate with geophysical societies in Mexico, Argentina, Malaysia, Great Britain, Turkey, China, and Russia and plans to regularly hold more meetings outside the U.S.
One concern is that while 66% of SEG members range in age from 30-49 years, only 4.7% are 20-29 years old.
Many opportunities exist for private geophysical contractors to expand into countries where operators formerly were reserved for state owned crews. Schoenberger noted that recent figures showed private geophysical contractors operate nearly 400 crews worldwide. One third run five or fewer crews each, and one third field 6-17 crews each.
The three largest contractors combined-Cie. Generale de Geophysique, Petroleum Geo-Services, and Schlumberger Geco-Prakla-operate the other one third.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
Issue date: 11/07/94
