The expectation expressed at our convention a year ago that geophysical activity would reach a new record high in 1948, has been amply fulfilled. For the oil industry the year 1948 was record making in many respects. At its end, the reserves of the industry stood at a new all time high, in spite of their depletion by record breaking production. The over-all exploratory effort not only replaced the oil produced but, in addition, provided a margin of over a billion barrels for the future. This report is confined to the geophysical aspects of exploration and aims to provide only a picture of its magnitude, its character and its geographic distribution.