130 Exploration Geophysics— Today and Tomorrow

vestigations to locate suitable underground silo loca­ ways to give our client the benefits he is after when tions for intercontinental missile launching sites are he buys our services. In some cases, this may mean under way, and gravity surveys for more precise meas­ obsolescing our present techniques and instruments. urement of the earth’s surface are being conducted. Obsolescence produced in an orderly and well-thought- What does this diversification mean to the petroleum out pattern might be termed “creative destruction.” exploration industry? Are the contractors deserting the The process of controlled obsolescence will enable a oil fields for the green pastures of government con­ contracting company to compete better and to realize tracts? Not at all! These efforts and the current research a reasonable profit for its efforts. It assures the oil in­ being carried out on new and more economical methods dustry of ever sharper techniques and instrumentation. of oil finding mean only one thing to the petroleum Possibly this philosophy may scare some of us away industry and that is progress. Thus the contractor who from making the kind of effort that will lead to such is willing to invest in the future to obtain more knowl­ obsolescence. But, if one company can think, experi­ edge applicable to the search for oil is the one who works ment, and produce in such a way as to make our present for the good of the entire industry. methods obsolete, then someone else can do the same So, in planning ahead, we must figure out alternative thing. It makes a lot of sense to do it first.

FEAST OR FAMINE IN THE OIL AND GAS PRODUCING INDUSTRY

THEODORE A. LINK*

INTRODUCTION REDUCTION OF EXPLORATION PERSONNEL MEANS REDUCTION OF RESERVES In the February 20th issue of Oilweek there is an editorial beginning with the following sentence: “The The antagonism between some geologists and geo­ year 1961 will provide a new buoyancy for the ailing physicists, which arose because of misunderstanding Canadian oil and gas industry, but we are not likely to by misinformed individuals when geophysics was in­ see a return to the boom conditions of the fabulous troduced in exploring for oil and gas, has been gradually fifties. The soaring sixties will be more sombre than worn down almost to insignificance. There are, of soaring.” course, many and sundry reasons for this happy state According to figures released by the major, or larger of affairs, and one of the main reasons is the fact that integrated companies with respect to profits, there many hundreds of oil and gas fields have been discovered seems to be nothing ailing the oil industry. I am sure by purely geophysical methods in areas where surface that in most instances the over-all oil business is in geological data were not obtainable and where sub­ fairly good shape, although the producing departments surface geological information had not been made are not. The present situation emphasizes the desirabil­ available from shallow or deep drilling. We are also ity of associating oneself with an integrated company aware of the fact that many oil and gas fields have rather than a solely producing concern. been discovered from geological data alone as well Many of you assembled here today have even more as from geophysical, but that most of the recent dis­ concern because you are not even regarded as pro­ coveries have been on the basis of a combination of ducers of oil and/or gas, but searchers for oil and/or geophysics and geology. In an address for an occasion gas. That puts you in the subsection of the Producing of this type at a time such as this, any discussion Department termed the Exploration Division, a part of coordination between geologists and geophysicists of the Producing Department of an oil company more would, in my opinion, amount to an insult to the in­ subject to personnel reduction than any other. telligence of this audience. For is it not true that both However, I am certain that we are gathered here geologists and geophysicists are losing their jobs to today not to attend the wake of a departed phase of the the right and left; and simply because “misery likes oil and gas exploration business; from a look at the company,” we should unite to forestall a wholesale program and papers delivered so far, this is just another elimination of geology and geophysics from the produc­ pause to catch our breath for bigger and more sub­ ing departments of oil and gas companies in Western stantial achievements for the oil and gas industry and Canada and elsewhere. Past records show7 that com­ ourselves. panies which increase their efforts to discover more oil

* Link, Downing, Cooke, and Co. Ltd., Calgary, Alta.

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and/or gas when conditions are as they are now, usually took a cut in his salary as Manager of the Association reap the greatest rewards in the long run. One must with the hopes of helping to tide things over to better remember, however, that even though a company of times. limited means would like to increase its efforts during Let’s call a spade a spade and accept statistics times such as these, such a company is now finding it which indicate that during the last three years enroll­ difficult because wildcatting for hydrocarbons is in this ment in geology has declined by more than 36 percent. day and age, and particularly under present conditions, If this were not the case, our predicament with respect a very costly affair, reserved only for the giants of to helping geologists who are losing their jobs would the industry. Nevertheless, as I have intimated, many be even worse. I am sure that similar statistics with of the great or major oil companies were spawned dur­ respect to geophysicists in the petroleum industry ing times and under conditions such as we are now would show the same trend. However, there is now a enjoying, or shall I say, from which we are now suffering. big demand for physicists, astro-physicists, and, of However, the point I should like to make here is that course, electronic engineers; and I am certain that an integrated company which eliminates its Exploration very soon there will also be available a deluge of such Department is laying the foundation of its own ulti­ scientists with the resultant unemployment problems mate elimination. A solely producing company which for that type of professional men. The periods of “feast ceases to look for more oil and/or gas will eliminate it­ and famine” within the producing departments of the self when its reserves have been exhausted. In other oil and gas companies are something most of us older words, the search for more oil and gas reserves must go members of the profession have experienced several on, and those of courage will prosper over those of times, and really all one can do about it is to try and faint heart. live through it. Before we go any further I’d like to quote from Sir In spite of this gloomy picture I've painted for you, Stephen Gibson, Chairman of the Permanent Council I feel that things are not as bad as they appear. There of the World Petroleum Congress, London, England are several avenues along which we might travel, or who stated in the last issue of the International Oilman, even find ourselves in spite of ourselves, which will “There is little doubt that the present excess of avail­ alleviate matters considerably or even lead to bigger ability of crude oil will vanish within three or four and better accomplishments by many who are today years if the world’s rate of increase of consumption con­ wondering where to turn. Incidentally, apropos to those tinues at the rate it has done since the end of the war.” thoughts, we must not lose sight of the fact that no matter what the conditions may be, those who are OVER-SUPPLY OF GEOLOGISTS AND GEOPHYSICISTS better than average will always manage to survive and Five years ago, at the time when I was President of that the exceptional ones invariably reach the top be­ the American Association of Petroleum Geologists (i.e. cause there is always room at the top for the most 1956) I suggested that there be formed a so-called competent. Therefore, things are not too bad, for these Employment Committee for the Association, the object reasons. obviously being a clearing house for placing geologists in open positions, or helping to transfer them from OTHER FACTORS AND AVENUES OF ALLEVIATION one area or district to another if, as, and when such In the first place, although there is a world-wide and procedure be needed. Considerable opposition was local glut in the crude-oil market, which I ’m sure is offered that suggestion at that time primarily because temporary, the natural gas markets for Western Canada of the fact that times were good and jobs were more have been opened up, and from this date on the natural abundant than personnel—even though much of the gas reserves in Western Canada must be maintained at available personnel was of dubious calibre (at least in a level well above the forseeable demand. In other my opinion). On top of all that, our Association had words, natural gas reserves, like crude-oil reserves are several committees already functioning which were a diminishing asset or commodity which must be re­ created to acquaint the public with geology and geolo­ plenished, and any gas producing company must keep gists in order to recruit even more young men to take on looking for more natural gas reserves or eventually up geology as a profession. fold up, unless it is diverted into some other business. At that time, and for several years previously, The same also applies to an oil producing company. applications for membership in the Association were at Years ago the Calgary Gas Company decided to dec­ the rate of around 1,000 per year. The Executive Com­ imate its exploration department, apparently believing mittee spent a great deal of its time processing and that sufficient reserves had been discovered to take care passing on the applicants. During the last few years of the market for quite some time. It seemed a good this condition no longer obtains, and instead of being idea for a short period, but not for the long pull. swamped with applicants, resignations are on the in­ Calgary’s population has almost trebled since then. crease, just as was the case years ago, at which time In view of these facts, one can hardly visualize the the work-horse of the AAPG, Mr. J. P. D. Hull, prospecting for gas to come to a sudden halt or even a

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slackening of effort from now on. New customers for and this is the fact that with so much oil and gas avail­ that commodity are being sought and obtained con­ able in Western Canada the sale of those commodities tinually. Therefore, I look upon the present slump in is now a matter of direct competition with oil and gas geophysical and geological prospecting to be rather short­ outside of Canada. In the long run salesmanship in lived. Also, if the race to build military missiles and getting rid of the exportable surpluses is preferable to outer-space vehicles continues, power must be derived government intervention and subsidies. W'hile on this from somewhere to manufacture them in the first subject, please allow me to digress somewhat by express­ place, and to propel them when built. At present, liquid ing my hearty disapproval of those who keep on ad­ and gaseous hydrocarbons are in demand, and will vocating a policy by the Government that outside continue to be needed for quite some time. Because of capital should not be allowed in Canada in the first this, the present relative inactivity of the oil and gas place; or, if allowed at all, that it be restricted and exploration effort cannot continue too long. Of course, ham-strung with doubtfully enforceable and unreason­ I will admit that a young geophysicist or geologist, let able regulations. Recent unbiased surveys in Canada us say 30 years of age, with a wife and two or more indicate that by far the majority of foreign-owned com­ children who has just been let out by his company, panies operating in Canada for any length of time have will find little comfort in being assured that the industry close to 100% Canadian personnel from top to bottom will pick up in several years time. This is particularly with stock purchase plans available to all. Any person true if said young man had been living right “up to the with a minimum of foresight can realize the advantages Jones’s” with two cars, Hi-fi and stereos, several T.V. of such a policy. sets, a motor-boat, country club dues, etc. Furthermore, the change from Canadian to pre­ However, let us assume that things do not turn for ponderance of American stock ownership in the now the better within a reasonable time as far as geophysical existing independent oil companies in Canada can be and geological prospecting for oil and gas is concerned. blamed on the Canadian speculators themselves who, What to do? My second point is this. after buying a newly issued stock, let us say at 75 cents At the time when Western Canada started on its big per share, have sold said stock for $1.50 on a quick oil boom upon completion of Leduc No. 1 in the year turnover to whoever would buy it. Many of such stocks 1947, the mining or hard-rock geologists and geo­ are now selling, in spite of our bad times, above the physicists were having a very tough time. Quite a price at which the original shares were sold, and such number of the more adaptable type switched from shares are now in foreign hands. Whose fault is this? hard-rock geology to oil and gas geology with excellent Should the government try to rectify this? It seems to results for themselves and their respective companies. me that these “cry babies” want to have “their cake A similar switch could be made, to a reasonable degree, and eat it” at the same time. by the sedimentary geophysicist and geologist by turn­ If the Government is to intervene in the oil and gas ing to hard-rock prospecting for minerals utilized in business at all, I firmly believe that the intervention missiles and space satellites, as well as in such mundane should go no further than to alleviate the tax burden contraptions as automobiles or aeroplanes. of Canadian producing companies so that they find It is my considered opinion that a university-educated themselves on equal terms or footing with companies geologist or geophysicist, who has been subjected to from the outside operating in Canada. the fundamental principles of geology or geophysics, And now, back to the subject of the reduction of ex­ should be able to adjust himself to any phase of either ploration personnel by the oil and gas companies’ science as the case may be; be it mining geology, petro­ exploration departments. Some integrated oil com­ leum or natural gas geology, or any other division panies did, in the past, and some seem to be following thereof. Furthermore, there seems to be a call for more the same pattern of cutting down drastically their ex­ astrophysical talent, and possibly some of the earth- ploration personnel, the very people who are responsible bound geophysicists might switch to loftier levels than for discovering the reserves needed to assure said com­ was ever dreamed of when they received their diplomas. pany its proper place in the oil and gas business in There may be among us here today a geophysicist or the distant or the immediate future. Obviously, if such geologist who will begin or end his career on the Moon reduction of exploration personnel is absolutely neces­ or Mars. Who knows? sary, it seems most reasonable that the men or women As intimated earlier, my experience in and observa­ in question should be transferred to other departments, tion of the oil and gas exploration business (which covers and to such departments in which the most good can some forty-four years) leads me to conclude that the be derived not only for the company, but also for the alternating periods of “feast or famine” strike when individuals. One might say that in general, geologists, least expected by the majority of those seriously in­ geophysicists, or even most technical men, are poorly volved, and that the transition from one to the other suited for employee- or public-relations assignments. appears to present no definite trend or pattern. There Production engineering and land department work is one thing which some of us do not seem to realize seem better suited to their abilities. However, unless

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the company really wants to get rid of a “foul ball,” it students specializing in geology or geophysics to possess seems to me that research is the place to put all the the right qualification for that particular type of life. better men or women not needed for the immediate Hem No. 2. It is my considered opinion that, in spite increase of oil and/or gas reserves via the exploration of the oversupply of oil in the world market, and the route. Nevertheless, at the risk of sounding too repeti­ Western Canada area, the initiation of the large scale tious, the present conditions are helping to eliminate exportation of gas from Western Canada will tend to many who never should have taken up geophysics alleviate conditions in that area earlier than elsewhere and/or geology. for both gas and crude-oil exploration. And now to sum up the message I’ve attempted to Item No. 3. It may be necessary for quite a number put across with my short ramblings from this to that. of university-trained geophysicists and geologists to Item No. J. The overenthusiastic, but well-meaning, switch from the oil and gas finding profession to hard- effort of leaders in the sciences of geology and geo­ rock or solid mineral finding. If such can’t be accom­ physics to educate and interest the public in those plished, it may be necessary to take up an entirely dif­ sciences and to encourage more young people to take ferent mode of earning a living, more suited to the in­ them up as a profession was a great contributor toward dividual involved. This item is most distasteful to all of our present dilemma which, of course, is due primarily us, but a similar course of action was followed during to over-production, caused by the accelerated discovery previous periods of famine, i.e. “job famine,” because of rate. Naturally, the discovery rate was accelerated be­ the over-production of oil. cause of improved technique together with plentiful Item No. 4. Government interference in the oil and available personnel. My attitude toward encouraging gas producing business should be kept to a minimum. young people to take up geology has, I’m afraid, always Government subsidies should be avoided, and pertinent been negative for the simple reason that I regard less tax relief is as about as far as the government should than 10% of the average run-of-the-mill university enter the picture.

TECHNICAL LIMITATIONS OF PRESENT GEOPHYSICAL TOOLS

W . T . BORN*

Perhaps I should begin by defining the word “Tools.” merely as pegs upon which to hang a few' sour grapes— if I shall not talk of gadgets but shall consider “Tools” not pearls of wisdom. to mean all geophysical methods and associated tech­ The necessity for an indirect approach to mineral niques. My talk, then, will be a discussion of what I exploration is well understood by geophysicists, but is believe to be the “Technical Limitations of Geophysical not always appreciated by those who employ us. No Methods,” particularly those which all methods have geophysical tool can detect petroleum as such, we can in common. only map some subsurface traps in which it may have I fear that there is little new' in what I am about to accumulated. In the mining industry we are a bit better say, but the subject is important enough to consider off. Often the ore body we are looking for has physical again. It is easy for us to become so enamored of the properties which our present geophysical techniques gadgets at our disposal, and of our cleverness in using can detect. Even so, such properties are seldom, if ever, them, that we sometimes lose sight of the factors which unique; so again the exploration approach is usually limit their usefulness. A few of these factors are listed indirect. Some iron ores are magnetic —but others are below. not. Some ore bodies may be good conductors— but so is graphite. Seismic methods have been employed to find LIMITATIONS OF GEOPHYSICAL METHODS buried river channels when the primary object of the 1. The Indirect Approach search was uranium ore. There is no need to belabor the 2. Instrumental point, but I do wish to emphasize again the necessity of 3. Range of Investigation keeping this primary limitation in mind when planning 4. Noise any program of geophysical exploration. 5. Limited Resolving Power My second peg, instrumental limitations, can be dis­ 6. Ignorance posed of briefly by saying that, at the present time, This list is certainly not complete nor are the cate­ such limitations are of minor importance. Perhaps some gories listed mutually exclusive. I intend them to serve of my mining friends will disagree, but it is true that

* Geophysical Research Corporation, Tulsa, Oklahoma.

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