View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
April 21, 2020

Seismic industry to face big losses amid coronavirus, Rystad reports

The decline in exploration and production caused by the Covid-19 pandemic and record-low oil prices will cause the seismic industry to suffer most in the oil and gas sector, according to an analysis by energy intelligence firm Rystad Energy.

By Yoana Cholteeva

The decline in exploration and production caused by the Covid-19 pandemic and record-low oil prices will cause the seismic industry to suffer most in the oil and gas sector, according to an analysis by energy intelligence firm Rystad Energy.

Free Report
img

Identify the trends of tomorrow using filings sentiment analysis

Business sentiment continues to improve, showing a clear recovery since the onset of COVID-19. Sentiment in 2021 was up by 8% compared to 2020. Industrials had the highest sequential filings sentiment growth in Q3 2021. Optimism around digital themes and general outlook drove the positive trend in overall business sentiment. GlobalData’s Filing Analytics Annual Report 2021 on Industrials provides insights into sentiment and mention trends for companies, geographies, and themes. Get real-time analysis of:
  • Quarterly & annual reports
  • Earnings call transcripts
  • IPO filings
  • Events presentations
  • ESG filing trends
Understand the overall outlook for ADS, Construction, Mining, Oil & Gas, Power and Automotive, and spot the topics and themes that will be most impactful in the next few years. Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

The company estimates that seismic revenues will drop by 51% in 2020 in a $30 Brent scenario and by 77% if the Brent falls to $20, compared to levels seen in 2019.

Rystad Energy oilfield service analyst Binny Bagga said: “Seismic companies across the board have started to adjust their business plans to better prepare themselves for this downturn. Most companies have implemented cost-cutting measures which include layoffs, furloughs, cold stacking of vessels, and general cost reductions.”

These forecasts are provoked by revisions in exploration spending from exploration and production operators and delayed licensing rounds by governments in response to low oil prices. Under the new market conditions, Rystad expects that exploration spending will decline by more than 20% from its 2019 levels, with at least a 12% drop seen by offshore exploration drilling alone.

Within exploration activities, the company predicts that the hardest-hit area will be the acquisition of new geological and geophysical studies in recently acquired blocks and work on yet-to-be-approved exploration wells. When it comes to ongoing offshore projects, logistical challenges caused by travel restrictions and quarantine rules are impacting crew changes for offshore vessels and could result in completion delays that could severely damage the balance sheets of small and medium-sized companies.

Related Companies

Free Report
img

Identify the trends of tomorrow using filings sentiment analysis

Business sentiment continues to improve, showing a clear recovery since the onset of COVID-19. Sentiment in 2021 was up by 8% compared to 2020. Industrials had the highest sequential filings sentiment growth in Q3 2021. Optimism around digital themes and general outlook drove the positive trend in overall business sentiment. GlobalData’s Filing Analytics Annual Report 2021 on Industrials provides insights into sentiment and mention trends for companies, geographies, and themes. Get real-time analysis of:
  • Quarterly & annual reports
  • Earnings call transcripts
  • IPO filings
  • Events presentations
  • ESG filing trends
Understand the overall outlook for ADS, Construction, Mining, Oil & Gas, Power and Automotive, and spot the topics and themes that will be most impactful in the next few years. Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology