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. Downloaded from http://pubs.geoscienceworld.org/geophysics/article-pdf/27/1/130/3153193/130.pdf by guest on 29 September 2021 Exploration Geophysics— Today and Tomorrow 131 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.