Associations cited 'evolving energy sector' and COVID-19 impacts as reasons to create a single organization

Two associations representing petroleum geologists and engineers have nixed a proposed merger after volunteer leadership raised concerns about the proposal, the groups recently announced.

The American Association of Petroleum Geologists and the Society of Petroleum Engineers announced in 2021 that they would explore becoming a single organization "in response to an evolving energy sector and challenging COVID-impacted market environment." The merger was contingent on the vote of the volunteer leadership of each organization as well as their members.

However, in a March 16 statement, the two groups said those plans hit a snag. Several "points of concern" about the merger were raised during an AAPG executive committee meeting, which were subsequently shared with a steering committee overseeing the effort. The groups didn't spell out what those concerns were, but as a result, the executive committee voted against further pursuing a merger.

"We continue to believe that the proposed merger of AAPG and SPE would create a stronger organization to serve members effectively in the coming decades," the associations said in a joint statement. "But the time for that action is not now."

SPE, based in the Dallas area, reported revenue of $48 million for the year ending March 31, 2020. Tulsa, Okla.-based AAPG reported revenue of $15 million for the year ending June 30, 2020.

The oil and gas industries were hit hard by the COVID-19 pandemic as oil prices dropped to dramatic lows. Oil prices have since rebounded although the industry is dealing with worker shortages and investors pressuring companies to hold off more drilling so they can get better returns on their investments, according to an analysis by NPR.