D3206 - Oil and gas exploration, geological work (oil and gas only) including survey

Operational Details
Oil and gas exploration includes resource companies initially exploring for the natural resources that make up the petroleum industry. Gas and oil is searched for and confirmed by geologists who study geological and geophysical properties. Data is also obtained from existing wells and surveys that detect tiny variations in the earth’s magnetic field. Geological and survey work undertaken by exploration companies is incidental to their overall operations.

If the property is to be developed, there is a need for the land to be properly surveyed and mapped out. This is accomplished by an oilfield surveyor. When this is accomplished and the oil company has decided there is enough potential, a drilling firm is contracted to drill the well. Once completed, the well is usually put into production, and that means contracting pipeline contractors to construct pipelines so the product can be transported to the refinery or gas plant.

It is not uncommon for large oil companies such as Shell Oil, Imperial Oil, Petro Canada etc. to have their own drilling division that interfaces with the drilling company. Production departments are common and when necessary, other oil investment firms are brought in, if the opportunity, or need arises. (This is more common in offshore development and drilling).

Oil and gas companies marketing or purchasing petroleum products, even though not producing them, are part of this industry. Title is taken of the product and revenue is generated from the sale of crude oil or natural gas.

Oil and gas exploration includes directing, controlling, evaluating and/or supervising field operations such as seismic and drilling programs. They are, in effect, the general contractors of the petroleum industry.

SIC Codes
000000336 - Oil, gas exploration
000000337 - Geological work incl. survey