The spot price for West Texas intermediate crude has in the last few years ranged from a high of USD 145.29 per barrel as of July 3, 2008, to a low of USD 31.41 per barrel as of 22 December 2008, with a closing price of USD 95.42 per barrel as of 30 June 2011. As of 30 June 2011, the closing price of natural gas at the Henry Hub was They subsequently declined sharply, reaching a low of USD 1.88 per MMBtu at the Henry Hub on September 4, 2009. ![]() On Jnatural gas prices were USD13.31 per million British thermal unit, or MMBtu, at the Henry Hub. Oil and natural gas prices are extremely volatile. In addition, higher prices do not necessarily translate into increased drilling activity since Archer’s clients’ expectations about future commodity prices typically drive demand for Archer’s services. The significant decline in oil and natural gas prices caused many of Archer’s customers to reduce their activities and spending in 2009, and these reduced levels of activity and spending could continue through 2011 and beyond. Resulted in diminished demand for oil and gas and significantly lower oil and natural gas prices. The worldwide deterioration in the financial and credit markets, which began in the second half of 2008, Even the perceived risk of a decline in oil or natural gas prices often causes exploration and production companies to reduce their spending. Demand for Archer’s drilling and well services is adversely affected by declines in exploration, development and production activity associated with depressed oil and natural gas prices. A sustained or deep recession could further limit economic activity and thus result in an additional decrease in energy consumption, which in turn could cause Archer’s revenues and margins to decline and limit Archer’s future growth prospects.Īrcher’s business depends on the level of activity of oil and natural gas exploration, development and production in the North Sea and internationally, and in particular, the level of exploration, development and production expenditures of Archer’s customers. ![]() Hostilities in the Middle East and West Africa and the occurrence or threat of terrorist attacks against the United States or other countries could contribute to the economic downturn in the economies of the United States and other countries in which Archer operates. An economic downturn could lead to a decline in energy consumption, which will have materially and adversely affect on Archer’s results of operations. In addition, an economic downturn could reduce demand for drilling and well services negatively and impact Archer’s activity levels and pricing for its services, adversely affect Archer’s financial condition and results of operations. ![]() A worldwide economic downturn could reduce the availability of liquidity and credit to fund business operations worldwide and could adversely affected Archer’s customers, suppliers and lenders. Archer’s operations are affected by global political, economic and market conditions.
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