9 Dril-Quip  2014 Annual Report Looking Ahead The overall business climate and outlook in 2014 started  out on a positive note and the average price of oil  remained above $100 per barrel in the first quarter.  Around mid-year, however, as supply stocks grew amid  relatively flat global demand, the oil price per barrel  began to decline. Day rates for offshore rigs also began  to drop while more new-build rigs came on the market.  The price of oil then began a more rapid decline after  the OPEC meeting in November 2014, at which OPEC  decided to maintain current production levels. By the  end of 2014 oil prices hit roughly $55 a barrel, the  lowest in 5 years, and continued to decrease in early  2015. While no one can predict oil prices, we must  be prepared for the current low prices to be the new  market norm for the foreseeable future. When the price of oil falls significantly, oil companies  typically reduce and/or postpone their drilling and  production projects, which in turn affects the volume of  our booked orders. We will face whatever challenges  arise by maintaining our focus on costs, looking for ways  to accomplish our objectives more efficiently, adopting  strategies to protect and increase our market share, and  looking for new sales opportunities wherever they exist. Dril-Quip’s  financial health is solid and we have a  substantial backlog to complete and deliver in 2015.  The Company has a strong balance sheet that will allow  us to face these challenges and take advantage of  opportunities. We have seen economic downturns 