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AAPG Bulletin

Abstract


Volume: 41 (1957)

Issue: 2. (February)

First Page: 358

Last Page: 358

Title: Explore or Liquidate: ABSTRACT

Author(s): Ed J. Hamner

Article Type: Meeting abstract

Abstract:

An oil company which does not find or acquire new reserves of oil and gas in sufficient quantities to balance the rate of production from old reserves is in sure process of liquidation.

The exploration team including geological, geophysical, and other work, which is the company's best hope for finding new reserves, is usually charged with that direct responsibility. Unfortunately, there is a feeling often expressed in both large and small groups that management in many companies does not show full respect for, or complete understanding of, the exploration team. Management is often charged with being too critical of exploration when a wildcat proves dry. Exploration charges that management often refuses to consider or acquire good prospects when they are conceived by the geologist or geophysicist without giving proper reasons for such rejections. These and other things cause a feeling of frustration to arise in exploration whose morale becomes seriously injured, even o the point where resulting discouraged efforts seriously impair its full value to the company. The feelings on the part of management and exploration toward each other are discussed in some detail. It is pointed out that perhaps neither management nor exploration understands the other well enough to perform its respective offices properly.

Growing exploration alumni lists of many companies testify eloquently to these facts. This discussion concludes that both exploration and management should educate themselves to the degree that they will be able to understand the other's perspective and his real desire to contribute to the growth and prosperity of his company. A high degree of cooperation and coordination of management and exploration relations will surely result in a much longer life for the industry and will put off for a long time the day when liquidation may begin.

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Copyright 1997 American Association of Petroleum Geologists