With the continued glut within the market, per barrel prices seem unable to sustain the plus $50 rate and exploration models are changing. Oil companies are experiencing resource cuts in the exploration budgets, and often resorting to the higher risk/ higher reward models of drilling instead of shooting seismic, because these projects are 'easier to manage'. Seismic companies are holding on tight to stay afloat until the recovery comes. It's not all doom and gloom however, as we are seeing an uptick in seismic project potential. There are good news stories continued in India, Europe, Africa, and the Middle East.
All of the above being said, competition between seismic providers is at an all time high, and only those companies who adapt a strategic model will prevail. While some markets prefer contractors to utilize new equipment only (India and Saudi Arabia come to mind immediately) most markets will allow contractors to provide equipment of older vintage, provided the contractor can show the equipment meets or exceeds the manufacturer's specifications.
In most cases, second hand seismic equipment can be procured in a 'project ready' state. Any of the catastrophic equipment failures that I have seen over the past years have not come from equipment that has previously been used on projects, but from equipment from the factory!! The ability to have QC data from equipment that has been deployed and working on a project site is invaluable. It allows the end user to experience if there are any unforeseen issues such as problems with the manufacturing, especially if 'product improvements' have been made. Second hand users have the advantage to examine the product history, including maintenance records, anecdotal history from previous users, and QC records.
In most cases, second hand equipment can be procured, and perform exactly the same as a new from factory item would (because it's always a contractual requirement anyway!!)Second hand equipment can also be procured at a fraction of the cost of new equipment. Shipping costs generally run the same as purchasing from factory.
So, if you had the choice between buying two cars, each 0-60 mph same time, safety ratings both 5 stars, both the same color, both suit your needs, but one is half the price.... which would you buy?