.. the Canadian Association of Geophysical Contractors' board of directors told Oilweek in an annual review of the state of the sector.

Board members say that this past year has proven to be the slowest exploration period in a decade, and perhaps the worst year since the National Energy Program of 1980. Many major contractors are working for break-even rates just to keep their staff intact for the anticipated turnaround. ...

The sole bright light this year, the board says, was the roasting summer in the southwestern U.S. which kept gas-fired power stations roaring to keep up with demand for air conditioning.

Several "uncontrollables," including dismal oil prices and corporate mergers, did harm. ... environmental concerns and changing regulations. ...

As energy prices and field activity fell this year, pay rates for echo-sounding seismic surveys as the first step towards new drilling slid to the lowest levels that the industry can recall for probably the last 10 years. ... "Even though they're more efficient and cost effective they're still not making any money," (board member, David) Robinson said. ...

... mergers among production companies will continue to take a toll on seismic work in the near future. Mergers delay work by two years on average, while the companies involved combine their banks of seismic data. ...

Rehashing old data is cheaper than new seismic work, but it is also less effective. It can take more than a dozen exploratory wells before a profitable one is drilled, even with seismic data in hand. ...

... environmental regulations are no help.
"We're being forced to make a lot of changes and utilize increasingly specialized costly equipment," (Mike) Doyle said. "We already have to do all this stuff yet we're forced to drop our prices ... it's the expectation of the oil companies. They want the lowest dollar seismic shoot. That's the frustrating part." ...

Doyle said, "many programs look impossible to do. But through the creativity of the association's members, we've been able to adapt equipment to work within the guidelines: specialty drills, helicopters, smaller equipment, satellite surveys."

... environmentally sensitive regions.
Their geology is also tricky, with complicated faults hiding reserves. Exceptionally deep $6-$10 million wells might be required. ... we're getting into areas where environmental implications are at their worst," the geophysicists agree.

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