Coincident with this issue of E&P, with its special focus on the contribution of geophysics in exploration and production (E&P), those in the profession and who have associated interests once again participate in the Society of Exploration Geophysicists’ annual conference and exhibition. As in years past, this global gathering — the largest of its kind — will not only be an information exchange but will enable participants to learn of the latest products, techniques and innovations in our field of endeavor.

This unique gathering presents a wonderful opportunity for us all to step back and consider the role of exploration geophysics in the E&P industry. As we do so, it is important to

Figure 1. The health of geophysical companies is vastly improved over the past few years, exemplified by the number of new vessels like the CGGVeritas Viking Vision being introduced to the market. (Photo courtesy of CGGVeritas)
consider the broader context of exploration geophysics. This includes the tremendous contribution geophysics make in finding and producing oil and gas and doing so in the most efficient, cost-effective manner possible. But it is also important to consider the environment in which we gather our data; the government frameworks under which we operate and own data; the people (either the geophysicists or those who work with them, from the field to the lab and all places in between); and the businesses which provide the services, data and much of the innovation. These businesses — the geophysical industry — are critical to ensuring the contribution of exploration geophysics remains as vital as it has been to the E&P industry in the recent past, and they are integrally involved in ensuring it remains so into the future.

A healthy, robust geophysical industry is important to all of us — E&P companies, contractors, vendors and other service providers alike. I make this statement recognizing the importance of the services provided by the geophysical industry to the process of finding and producing oil and gas. This importance is reflected in a myriad of ways, for example: surveys consistently showing 3-D seismic as the most important technology for improving E&P efficiencies, the significant and increasing demand for reprocessing of existing data applying new and innovative processing techniques, and, the rapid uptake of new technologies such as electromagnetic imaging and wide-azimuth seismic acquisition techniques in challenging imaging environments such as the subsalt region of the Gulf of Mexico.

This contribution is not only in our safe, consistent and timely delivery of the many subsurface imaging services, products and data provided today. It also comes from other areas such as the research and development (R&D) efforts (in many instances in partnership with E&P companies) which enable us to increasingly improve subsurface imaging and to meet the ever-increasing unique imaging challenges.

The health of the geophysical industry is greatly improved from what it was just a few short years ago when balance sheet write-downs and operating losses were the norm. Today E&P
Figure 2. Among the many challenges facing geophysical contractors are the mitigation of potential harm to marine animals during their surveys. (Photo courtesy of the International Association of Geophysical Contractors)
companies have significantly increased their spending on geophysical services and data, which in turn has helped enable the geophysical companies to improve their margins and return their companies to financial health. The backlog of projects currently being experienced by portions of the geophysical industry indicates that financial health will continue, at least for the near term. This greatly improved financial situation and outlook are fueling significant investment by geophysical companies in new equipment and technology, additional capacity, new data and data products, and significant investment in R&D.

Challenges
Despite the robust conditions enjoyed today, there are significant challenges for us all, and how we rise to meet these challenges will help frame the contribution of geophysics to the E&P industry in the near future. These challenges include:

• Continued focus on and improvement in safety. This is always a challenge which must be constantly at the forefront of our efforts. The geophysical industry has been consistently meeting this challenge as evidenced by, among many other things, individual company safety statistics, the impressive record of our Marine Step Change initiative and the successful launch recently of our Land Step Change initiative. But today new geophysical companies are being formed and offering services, new crews are being added by existing companies, and new employees are being added to help with the increased workload. There is a tremendous effort underway to help ensure all of this happens while maintaining a safe workplace.

• Increasing concerns over the effects of geophysical operations on the environment. This level of concern by members of the public, NGOs and governments has been increasing, and so has its effects on our operations. And it is not limited to the potential effects of sounds generated by marine seismic surveys on cetaceans, sea turtles and fish. There is increasing concern over environmental effects of land surveys not only to plants and animals (and even crypto-biotic soils) but also to structures and other facilities and archaeological sites. In the extreme, this area potentially threatens the one interest I believe all readers have in common: the ability to acquire geophysical data. And unfortunately, what was once considered extreme in some areas does not seem so extreme today.

• Recruiting and retaining a quality workforce. While this is a challenge for the entire E&P industry today, it is particularly so for the geophysical industry. Recruiting new employees to exploration geophysics is increasingly important to all of us. The geophysical industry must not only staff the needed expansion currently underway, but as the primary E&P industry repository of geophysical knowledge and talent remaining after E&P company mergers and downsizings culminating in the late 1990s, geophysical companies are losing many employees to others in the E&P industry and therefore must increasingly focus on retaining existing employees.

• Ensuring government action strikes an appropriate balance between policy need and impact on geophysical operations and data. In addition to government action motivated by environmental concerns, governments are constantly evaluating and changing their policies and guidelines in respect to the geophysical industry. This is especially true for data ownership and licensing, which in most cases is carried out under ground rules created by government. These ground rules create the economic and financial environment under which nonexclusive data investment is often made, and changes to these ground rules, if not done thoughtfully and with thorough consideration of all potential consequences, can have a chilling effect on future nonexclusive data investment.

• Ensuring a healthy division of risks under acquisition contracts. While not the concern in today’s marketplace that it was to the geophysical industry a few years ago, I continue to hear current examples which demonstrate this issue continues to be a challenge. And given past history of and continued efforts to inappropriately transfer risks to the contractor, it is obvious this challenge persists today and well into the future.

• Knowing and respecting the conditions of license agreements under which nonexclusive data is used. This continues to and will probably always be a challenge, and a reminder of such here is warranted.

It is important to all who work with exploration geophysical data or value the massive contributions it has brought to the E&P industry that we successfully meet these and the other challenges before us today and into the future. Doing so will help ensure that the future contributions of exploration geophysics are as vital as its legacy.

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