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Korchinski is something of a CSEG notable: He has been involved with the brokerage business for a fairly long and continuous period and we sought his opinions on that basis. There are other people with a similarly lengthy involvement. None the less, it provides a sense of flavor concerning the development of the seismic data brokerage business. Dates are admittedly approximate, as are the details of the stories and anecdotes.
The conversation began, as conversations will, at the beginning with Barry outlining how he got into the seismic world. At that time, jobs for graduates were easy to come by, and Barry was mulling over 6 or 7 job offers in different industries the Chevron offer was john morris trade credit brokers only one in geophysics. Intrigued by the curious placement of the ad, he called Wes.
Korchinski continued at Sigma until his retirement as president in His initial assignment at Sigma shows the interconnectedness of the small geophysics community: After our initial discussion about careers and Seislog, we asked Barry if Sigma was the first brokerage company. Of companies that have recognition today, certainly Sigma and Kary are notable in that they both arrived on the scene in the s. Sigma was incorporated inand Kary Data a bit later.
They acted as facilitators to oil john morris trade credit brokers in trading data on a record-for-record or mile-for-mile basis and would charge the companies a fee for services. We were the fourth brokerage company in town.
Korchinski had a very specific comment about those days: Again, corrective input, if required is solicited, perhaps in the form of letters to the Editor. The conversation then detoured to group shoots and spec shoots.
Barry recalls Wes Rabey telling him that he conducted the first group shoot in Canada in At that time, Wes was running Accurate Geophysical. He had only one crew contracted and two with nothing to do. This consisted of one record foot E-W john morris trade credit brokers spread every 2 miles along every east-west road allowance, thereby resulting in an extremely sparse 3-D picture of the sub surface.
In addition, a foot hole would be drilled at every township corner to calibrate and confirm weathering corrections. Wes priced the shoot so that he would break even with seven participants. He was able to line up only six, but went ahead anyway, trusting that it was valuable data and other companies would eventually come around. In the mid s there was further significant effort in the spec shoot world. There was also some brief discussion of the databank concept that enjoyed some success for a while.
So, by the early s there were several seismic data brokers operating in Calgary. The days of direct trading were pretty much over, at least as the dominant john morris trade credit brokers of seismic data transfer. Wes headed a committee to convince the Alberta Government that it should further increase exploration activity causing more oil and gas discoveries — which, in turn would result in more royalties being collected by the provincial government by providing cash or royalty incentives to shoot seismic data — after all, it was the people with the seismic data that told the drilling people w h e re to drill.
The lobbying was successful and the GIC program started in Oil and gas producers were paid by royalty deductions and seismic companies were paid cash, having no royalty payments to reduce.
It john morris trade credit brokers one example of how the Government, really the people of Alberta, got repaid many times over for their investment in the incentive program. Korchinski recalls that in the early stages of the pinnacle play at Chevron, the ideas were kind of floating around, being openly discussed.
The way the program worked was that a company got paid either in cash or by royalty reduction and then had to release that data 3 years later at an artificially low price which spawned yet more exploration, which led to more production, which resulted in more royalties for the provincial government….
Later, the numbers were converted to kilometres. After that, the prices slowly escalated in the years to come over that GIC program and the hold period became 5 years at one point, so there were two years where no data came out. The significance for the brokerage business is that there is all of a sudden, with the first phase of the program, a lot of incentive data that must be released.
They invited a couple of representatives from every oil company as well as from every brokerage. The tournaments were usually in Turner Valley. Everyone got on the bus, which was amply stocked with beer and meat pies from the Bon Ton Meat Market. The Government decided that this official sounding organization could solve their logistics problem with the GIC data.
This emergent group realized they needed a method to show where the data was in order to john morris trade credit brokers it. Their brainchild was the plat system. There was one big base map of Alberta john morris trade credit brokers tiny lines, and individual page size plats at 1: There was a great deal of activity in the brokers association, before the oil price crash ofand the associated attrition in the industry.
During the expansion, primarily because of the extent of the initial effort and expense to generate the coverage maps, there was much discussion, even john morris trade credit brokers rancor, about how much newcomers should pay to join, john morris trade credit brokers their rights were and so on.
It is probably sufficient to say that the discussions were earnest and intense. At this point, we summarized our discussions as follows: Group shoots came up in a big way in the 60s with Rainbow and then in the late 60s and early 70s there are a few brokerage firms started, but the thing that really made it fly was GIC, Alberta Geophysical Incentive. The last GIC data came on the market in the late s. Byall of that had gone away and we were shooting without incentives.
In the meantime, brokerages continued john morris trade credit brokers the incentive data was still largely available. There was still a lot of momentum. Skipping ahead to john morris trade credit brokers events of the recent past, there has been a notable consolidation in the industry, best shown perhaps at Divestco, and the various brokerage firms that it has absorbed such as Rocky Mountain DataSeisview, and the brokerage arm of Request.
We briefly discussed what some people term the big box data stores, Olympic and Pulse, and how their presence has changed the brokerage business. While it is easily argued the brokerage world has, in fact, changed dramatically, our discussion looked mainly at how brokerage is conducted.
At the very start of john morris trade credit brokers conversation we suggested to Mr. Korchinski that there had probably been many changes in the brokerage business. The person who needs data calls or emailsbecause you are the gobetween john morris trade credit brokers you have maps. Maps, of course, are all on-line now and clients can look at them on their computers if they want to, various data bases and all that, but basically you go over there with your brief case, you pull out the data, you show it to him and hope that he will buy it.
I remember, one year I estimated that an industry-wide total of one hundred million dollars of seismic got traded in John morris trade credit brokers. We concluded our time together with a few moments discussing new brokers. There are perhaps more barriers to entry than there once were; mapping systems are required and they need to either be developed or subscribed to. On the other hand, much of the entry to the business is the way it has always been.
The model is a simple one. Errors or omissions are certainly not meant to slight anybody. If you notice any problems with an article examples: The CSEG does not endorse or warrant the information printed.
The Accidental Profession The conversation began, as conversations will, at the beginning with Barry outlining how he got into the seismic world. In the Beginning After our initial discussion about careers and Seislog, we asked Barry if Sigma was the first brokerage company. Group Shoot World The conversation then detoured to group shoots and spec shoots.
The s and Alberta Geophysical Incentives So, by the early s there were several seismic data brokers operating in Calgary. The Canadian Geophysical Brokers Association The significance for the brokerage business is that there is all of a sudden, with the first phase of the program, a lot of incentive data that john morris trade credit brokers be released. Today Skipping ahead to the events of the recent past, there has been a notable consolidation in the industry, best shown perhaps at Divestco, and the various brokerage firms that it has absorbed such as Rocky Mountain DataSeisview, and the brokerage arm of Request.
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