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The role of the seismic contractor in the new millennium—A slightly controversial view

Veritas DGC Inc., Houston, Texas, U.S.

Corresponding author: S. Ludlow, steve_ludlow@veritasdgc.com

The first 20% of the full text of this article appears below.

I would like to look into the crystal ball of the future and discuss some of our current and possible future business models pertaining to the supply of seismic services and information. So let's focus on the business, and the technology will follow.

Let's look at some of the facts (in italics) today.

There are fewer E&P companies today, and there will be even fewer in the future.

• less competition for acreage
  
• less use of seismic data to reload prospect portfolios
  
• emergence of aggressive and rapidly growing independents
  
• disposal of acreage by megamergers promotes seismic for evaluation
  

This means there will be less competition for acreage and hence less need for seismic data to reload prospect portfolios—the downside. However, there is an upside. The seismic industry has seen the emergence of the rapidly growing and aggressive independents as well as a potential disposal of acreage by the megamajors.

Seismic data will be needed to evaluate these areas disposed of by the majors and may spur data sales.

There will be at least one "mega" seismic contractor.

• There will be a dominant competitor with huge financial, personnel, and technology capacity, and a truly global reach.
  
• There will be further consolidation of assets.
  
• There will be enforced discipline to make money.
  
• There will be opportunities, because 1+1 rarely equals 2.
  

There will be one mega seismic contractor.

I believe there will be further consolidation in our business, which should result in SG&A savings and possibly force fiscal discipline upon us. It has also been demonstrated that in mergers, 1+1 seldom equals 2, so there is opportunity for other players not involved with mergers today. However, once these megacontractors get their houses in order, we had better watch out.

3-D seismic data have been the most important factor concerning success with . . . [Full Text of this Article]