Before I get into the real topic of my “bloggish” type of editorial, I must admit that in preparing this piece I read and re-read many of the previous “Beyond the Horizon” (BTH) entries and decided that this page contains the most informative 750ish words of insight I need from one magazine. This is not intended to slight the fine writers and contributors toOffshore magazine, it is just that I found that for my time and money, the BTH page seems to talk to me. In the recent January 2008 issue, Alan Boeckmann from Fluor Corp. thoroughly depressed me with his article about global business corruption. Corruption is one of those things that you know is out there and you know it’s bad but I am not sure I knew it was THAT bad. Alan did a nice job of pointing out the positive initiatives being taken on a worldwide level to address corruption. This took a little of the sting out of the realities he pointed out. Coincidentally, on the same day I read Alan’s piece, I read an article about the business ethics classes and forums being held at Baylor University. All I can say is that I hope all universities are offering similar programs or else the Baylor kids may be outmanned in the real world.
In the July 2007 BTH, Allen Brooks wrote about oil service companies adjusting to new industry forces. He mentions that the original Seven Sisters have been reduced to four (five with step-sister TOTAL). He says the real Seven Sisters are now basically national oil companies (NOCs). Again, another reality slap in the face. The good news is that in August of 2007, Jeffrey Harris from Warburg Pincus discussed “Private Equity Capital for New Exploration Companies.” This was music to my eyes. So please, for the love of seismic, all of you entrepreneurial minded oil finder types give Jeffrey A. Harris a call and get a big bag of money. Then give me a call and get a big bag of seismic. Let’s keep the wheels of capitalism turning.
Seriously, the articles I have referenced are excellent.
Before I forget or in case you didn’t notice, I am a seismic guy and 2007 was an interesting year for seismic. The price of oil almost tagged $100 bbl yet I saw some of my favorite companies go away via mergers and acquisitions. I saw a March lease sale held in October and I saw the Texas offshore turn into the Louisiana offshore. Then, I saw part of the Eastern Gulf of Mexico turn into the Central Gulf of Mexico and open for business. But most importantly, seismically speaking, I saw the world of wide azimuth (WAZ) 3D acquisition technology explode and envelop the Gulf of Mexico like kids on a Hannah Montana ticket scalper. At the time of writing this piece, there are four large WAZ surveys ongoing in the GoM. At the current rate, the deepwater GoM will be covered by WAZ 3D data in three years, maybe less. That is the issue.
WAZ 3D technology is fantastic and it has changed the future of geophysics, BUT, right now it is a Gulf of Mexico-centric tool. That does make sense. The GoM has all of the sub-salt imaging issues that WAZ 3D helps to resolve. For the most part, WAZ 3D is being acquired on a multi-client basis and the GoM is the world’s best market for multi-client 3D because of the large number of companies that operate here and the ease of leasing. Although a deal at twice the price (I’m in sales) it still has a sticker shock factor when compared to conventional 3D. So how do we move this technology around the world and into markets where even conventional 3D acquisition is difficult on a multi-client basis?
Over the next two years, the worldwide 3D vessel fleet will increase by 23. This is a 40% increase. We can double or triple the WAZ 3D fleet around the world by only using a fraction of these new vessels and guess what? The Gulf of Mexico can’t hold them all. This will be a problem if not managed properly.
WAZ 3D technology is proven and it sells itself to companies with the technical and financial wherewithal to utilize it. But how do we make that everybody? How do we globalize the most exciting geophysical technology in the last decade?
Oil priced at $90 - $100 is a good start. Experience and case studies will help. An entrepreneurial spirit, an aggressive exploration mindset, and a willingness to take risk on the latest technological developments within our industry are a must.
J. Kim Abdallah
VP NSA New Ventures
TGS-NOPEC Geophysical Co.
This page reflects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry. Offshore Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to Eldon Ball at[email protected].
