Geophysical Surveying and Mapping Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 940 geophysical surveying and mapping service providers in the US gather, interpret, and map geophysical data, primarily for oil and natural gas companies. Individual clients commission proprietary or exclusive surveys, which generally cover a limited area. Multi-client surveys are funded by geophysical surveying companies, which then own and market or license the data to clients.
Dependence on the Fossil Fuel Industry
Demand for geophysical surveying and mapping services is dependent on the level of spending in the oil and natural gas industry, which is cyclical and affected by global market conditions.
Uneven, Seasonal Demand
Demand for geophysical surveying and mapping services is uneven and influenced by seasonal factors.
Industry size & Structure
The average geophysical mapping and surveying provider operates out of a single location, employs about 7-8 workers and generates $1-2 million annually.
- The geophysical mapping and surveying services industry consists of about 940 firms that employ about 6,900 workers and generate about $1.7 billion annually.
- The industry is highly concentrated; the top 50 companies account for about 80% of industry revenue.
- Large firms, which include Dawson Geophysical, SAExploration Holdings, Echo Seismic, Breckenridge Geophysical, and Paragon Geophysical Services, often have international operations
- Small firms typically operate one or two crews and specialize in specific regions or types of operations.
Industry Forecast
Geophysical Surveying and Mapping Services Industry Growth
Recent Developments
Oct 23, 2024 - Streamlining Geophysical Survey Permitting
- The Comprehensive Offshore Resource Evaluation Act (HR 9472 – CORE Act) introduced by Rep Wesley Hunt (R-TX) in September is seen as a fundamental step toward streamlining geological and geophysical surveys permitting activities in the Gulf of Mexico (GOM) Outer Continental Shelf, according to EnerGeo Alliance. The Alliance, whose members include offshore survey operators, endorsed the bill’s language eliminating the five-year limit on incidental take regulations (ITRs) – relating to the taking of marine mammals incidental to geophysical survey activities – and instead allowing for the targeted amendment of ITRs, as necessary, to update mitigation measures or other findings, based on the best available scientific information. The Alliance said eliminating the five-year limit will also help to decrease opportunities for environmental groups to challenge ITRs to prevent energy development. EnerGeo Alliance also supports the bill’s provision removing the existing GOM ITR expiration date of April 19, 2026.
- Producer prices for architectural and engineering services rose to a new high in July, up 2.3% compared to a year ago after rising 3.2% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by the industry grew 2.6% year over year in August, while average wages rose 3.2% YoY in July to $41.54 per hour, BLS data show. Sales for the US geophysical surveying and mapping services industry are forecast to grow at a 4.06% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to the Interindustry Economic Research Fund.
- Funds from the Infrastructure Bipartisan Infrastructure Act will be used to remap Nevada in search of critical minerals vital for national security, and low-carbon energy technology, according to an August press release from the US Geological Survey (USGS). The $4.7-million airborne geophysical survey will be conducted through the USGS Earth Mapping Resource Initiative (Earth MRI), a partnership between the USGS and state geological surveys. The high-resolution geophysical data collection will focus on areas with the potential for critical mineral resources across the eastern portion of Nevada’s Great Basin. The airborne magnetic and radiometric data acquired by the survey will allow for the detailed identification of bedrock geology at and beneath the Earth’s surface. In addition to mapping potential for critical minerals still in the ground, recent Earth MRI investments have also accelerated mapping in areas where metals and minerals may have been left behind during previous mining.
- Oil and gas extraction companies are expanding offshore drilling operations in the Gulf of Mexico in part because doing so releases fewer greenhouse gases than drilling on land, The New York Times reports. Industry executives are betting on sustained demand for oil and gas for years to come and argue that offshore drilling is better for the climate than drilling on land because offshore operations emit far less greenhouse gases than producing the same amount of oil and gas on land, according to NYT. The greenhouse gas emissions associated with extracting a barrel of oil from the Gulf of Mexico are as much as a third lower than emissions from producing a barrel of oil from fields on US soil, according to a report published last year by the National Ocean Industries Association, an industry group for offshore oil, gas, and wind businesses, cited by NYT.
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