41ST ANNUAL MARINE / OFFSHORE INDUSTRY OUTLOOK CONFERENCE GEOSCIENCE UPDATE: MR. ALAN M. BREED EVP SALES & MARKETING

Transcription

1 41ST ANNUAL MARINE / OFFSHORE INDUSTRY OUTLOOK CONFERENCE GEOSCIENCE UPDATE: MR. ALAN M. BREED EVP SALES & MARKETING

2 AGENDA GEOSCIENCE UPDATE Market Outlook Financial Overview Regulatory Issues Technology & Innovation Personnel & Training Critical Challenges and Planning for the Future

3 OBS MARKET OUTLOOK THE FUTURE OF OCEAN BOTTOM SEISMIC

4 The OBS Market: Room for Optimism Ocean bottom seismic acquisition: historically appraisal and development tool Towed marine streamer seismic acquisition: historically focused on exploration Oversupplied and overshot Better data OBN market is not over saturated Marine streamer seismic industry oversupplied and fragmented According to IHS Markit s Seismic Quarterly Report (Jan 2018): OBS sector appears to be in better shape than the streamer market at present with some backlog emerging for the main parties OBS segment is seeing the uptick quicker than those towing streamers OBS Market drivers OBS delivers enhanced data quality over WAZ and broadband streamer data to image increasingly complex geologic structures Customer confidence, efficiency increases, and costs decrease Maturing OBN market widens usage

5 MUSD 1,600 0% 1,400 10% MARKET PROGRESSION 1,200 1,000 20% 30% 40% Estimated 2018 and projected 2019 Market recovery driven by cost and productivity enhancements % 60% 70% 80% % 0 100% DENSE INLINE SHALLOW WATER SPARSE Price per sq.km

6 Ocean Bottom Receiver Demand ( mid 2019) Projected demand

7 GLOBAL OBS MARKET 2017 AND 2018 (ESTIMATED) Dense inline 2017 Shallow water Sparse 2018 (est.)

8 FINANCIAL CURRENT AND EXPECTED PROBLEMS, CONSTRAINTS AND TRENDS

9 FINANCIAL CONSTRAINTS & TRENDS CURRENT & FUTURE Current: Capital constrained market Difficult to invest due to fluctuation in O&G price Burgeoning demand Trend towards reducing costs: Implement an asset-lite model Lower unit cost of nodes Increase efficiency with higher deployment rates to reduce survey duration

10 REGULATORY ISSUES & TRENDS RECEIVERS & SOURCES

11 REGULATORY CHALLENGES PROTECTING THE MARINE ENVIRONMENT Challenges: Regulations vary by country and region Permitting delays increase costs (vessels and crews waiting at port) Limitations due to exclusion zones Environmental Impact Assessments (EIAs): Conducted during the survey planning phase to evaluate potential impacts and risks to marine life Required by some countries

12 RECEIVER ISSUES CURRENT TECHNOLOGY Ocean bottom environmental sensitivity using node on a rope/wire (NOAR/W) ROV deployment alternatives NEXT GENERATION TECHNOLOGY Smaller / lighter nodes - ROV deployed Better mapping of the seabed AUV technology

13 SOURCE ISSUES CURRENT TECHNOLOGY & CHALLENGES Airgun source arrays Deeper geologic targets Longer offset data required Sound levels and source frequency Marine mammal observations EMERGING TECHNOLOGICAL BREAKTHROUGHS Lower sound pressure level sources Marine Vibroseis Low volume / dispersed source arrays Time distributed source arrays Wolfspar for ultra long offsets

14 INDUSTRY MITIGATION MEASURES REDUCE IMPACT ON MARINE LIFE Measures recommended by industry organizations* Individual company internal practices Site-specific measures to mitigate risks identified during project planning * International Association of Geophysical Contractors (iagc.org) The seismic industry has adopted mitigation measures as follows: Pre-project planning Soft-start or ramping-up procedures Sound modeling Exclusion zones (areas of biological significance) Avoid mammal activity seasons or migration Monitoring: Visual monitoring using marine mammal observers (MMOs) or protected species observers (PSOs) Passive acoustic monitoring (PAM) technology Developing trends Simultaneous sources can significantly reduce survey durations

15 TECHNOLOGY & INNOVATION ISSUES, DEVELOPMENTS & TRENDS

16 TECHNOLOGY & INNOVATION CURRENT CHALLENGES Reduce cost of acquiring ocean bottom seismic Develop technology and survey designs which increase efficiency and reduce environmental impact Acquire better data to image challenging areas and deeper targets such as salt, pre-salt, gas clouds, etc. Node integration capability

17 TECHNOLOGY & INNOVATION: MARKET DEVELOPMENTS

18 OBS TECHNOLOGY: DEVELOPMENTS & TRENDS ADVANCEMENTS IN MULTI- COMPONENT EQUIPMENT Advancements in multi-component equipment such as reduced node sizes to improve operational efficiency TREND TOWARDS EFFICIENCY IN THE FIELD Trend towards efficiency in the field such as automated node deployment systems, simultaneous sources, visualization software and other innovations are reducing costs DEVELOPMENTS IN SOURCE TECHNOLOGY & OTHER INNOVATIONS Developments in lower-frequency source technology* and other innovations are producing bettering imaging while reducing the impact to the environment * Image of BP s Wolfspar source technology

19 PERSONNEL & TRAINING

20 FIELD & OFFICE PERSONNEL CHALLENGES Price of oil & gas Changes in regulatory climate Redistribution of work load caused by retiring workforce and layoffs during a downturn Retention of highly trained personnel when there s an industry upturn

21 TRAINING CHALLENGES HARD TO FIND TRAINED PERSONNEL DURING AN INDUSTRY UPTURN LOSE TRAINED PERSONNEL DURING UPTURNS OR TO COMPETITORS INVEST MONEY IN TRAINING NICHE MARKET WITH SPECIFIC TECHNOLOGY (NODES, DEPLOYMENT SYSTEMS, SOFTWARE, ETC.) TRAIN EMPLOYEES, NOT CONTRACTORS

22 CRITICAL CHALLENGES FACING THE INDUSTRY AND HOW TO PLAN FOR THEM

23 CRITICAL INDUSTRY CHALLENGES Increasing geological complexity Customer confidence and adoption of OBS technology innovations over traditional 3D marine seismic Technological challenges: Simultaneous source for 4D Reducing cost of OBS while requiring better imaging fidelity Permitting issues which increase costs: Environmental regulation bodies can cause delays (crews had to wait for permits) Higher quality environmental information in the pre-survey planning phase can reduce costs and expedite improvements in survey productivity

24 PLANNING FOR THE FUTURE IN OCEAN BOTTOM SEISMIC Educate customers on the value OBS delivers to extract maximum value from their assets Implement innovative technologies and methodologies that will increase operational efficiency and provide the highest quality seismic data Continue to focus on quality, health, safety/security and the environment to mitigate risks Invest in retaining, hiring and training the best field and office personnel Stay abreast of regulatory changes in the industry

25 THANK YOU