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The most important variable that drives our industry is oil prices. While oil prices hit a peak last year and have since declined slightly, we are still well above historical levels. We have enjoyed a very busy year with our existing clients, plus the addition of quite a few new ones. Most of the new ones are smaller companies just getting into the oil and gas industry, and they need a lot more help with the understanding of how reserves are reported.
Although oil and gas prices have fallen and have taken some of the glow off planned investments, price stability going forward will be important, so that existing, upbeat trends are not damaged. We expect oil prices to maintain a $50-$60/bbl range in 2007 and the near future.
Equipment/ service sector prospers. The equipment/ service firms have also seen a very high demand for their services.
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