The most critical element to the overall profitability of a natural resources project.
The oil and gas industy has changed in terms of what it is looking for – described by one oil major representative as a move to “gas and advantaged oil.” This means a different approach from geophysical contractors to what has been done in the past, which was largely looking for frontier oil.
From now on, geophysical contractors might find themselves winning more business if they can help oil companies better understand mature areas such as the North Sea (and identify oil which may have been passed over), and identifying where there might be gas which was previously overlooked in the hunt for oil. We can help geophysical companies identify areas where the existing seismic is low quality (or at least, not made with today’s best available technology) and there could be a business case for a new survey.
The key obligation of any worthy oil and gas company is in de-risking prospects, appraisal well locations and even a development well program. Today’s challenges of optimisation of capital and well numbers, types of wells, recovery factor remain as complex as ever.
Petromall's experience and ability to integrate data and insight into field development planning is world class. A contingency planning at a level appropriate to the risk is a requirement commonly overlooked by the unenlightened operator of venture.
The oil and gas geophysics industry is going through a reset at the moment, as its clients - oil and gas companies - switch away from deepwater and frontier, and move towards mature reservoirs and onshore.
Key issues to date, among others, include: how do companies reset and realign their exploration strategy in line with future cash flow expectations from operations and new projects, and how exploration fits within an overall portfolio.
Has the E & P Company got the skills and financial backing to support a risk-based approach to make investors believe there is depth and contingency to the geological ideas being pursued?
Through our combined knowledge and experience we are able to teach these key issues to help companies benefit and grow.
This does not mean that the expensive seismic vessels and other assets need to be laid up though - because they can be put to different uses.
There are many mature reservoirs, including in the North Sea, which do not have as good seismic coverage as they could do.
There are also many onshore reservoirs which would benefit from better seismic. Land seismic has a reputation for high cost, and there are ways to do it at lower cost, or get better fidelity at the same cost.
Geophysics companies could also broaden their range of services. Geophysics does not merely need to mean seismic processing, it can also mean integrating data and offering new types of data. Also working better with dynamic data.
Petromall consultants, with a background in both geophysics and business, can help you to explore new business models and see how they might work.