In its January 2015 Oil Market Report, the International Energy Agency projected global oil demand was 92.4 million barrels per day in 2014 rising to an estimated average of 93.3 million barrels per day in 2015. According to the EIA, between January 1, 2015 and February 2, 2015, the price of Brent Crude oil ranged from $45.13 per barrel to $55.38 per barrel, closing at $51.74 per barrel on February 2, 2015. For the same period, Henry Hub natural gas price ranged from $2.97 per Mcf to $3.42 per Mcf, closing at $2.97 per Mcf on January 27, 2015. Detailed below is the average contracted offshore rig count for the Company’s geographic regions for the years ended December 31, 2014, 2013 and 2012. The rig count data includes floating rigs (semi-submersibles and drillships) and jack-up rigs. The Company has included only these types of rigs as they are the primary end users of the Company’s products. Rig Count 2014 2013 2012 Floating Rigs Jack-up Rigs Floating Rigs Jack-up Rigs Floating Rigs Jack-up Rigs Western Hemisphere ........ 125 96 129 89 128 83 Eastern Hemisphere ........ 100 96 94 89 88 83 Asia-Pacific ............... 54 260 50 248 48 220 Total ................ 279 452 273 426 264 386 Source: IHS—Petrodata RigBase—December 31, 2014, 2013 and 2012 The table above represents rigs under contract and includes rigs currently drilling as well as rigs committed, but not yet drilling. According to IHS-Petrodata RigBase, as of December 31, 2014, there were 66 rigs under contract (48 floating rigs and 18 jack-up rigs) in the U.S. Gulf of Mexico, 63 of which were actively drilling (46 floating rigs and 17 jack-up rigs). As of December 31, 2013, there were 76 rigs under contract in the U.S. Gulf of Mexico (43 floating rigs and 33 jack-up rigs), of which 69 were actively drilling (39 floating rigs and 30 jack-up rigs), and as of December 31, 2012, there were 69 rigs under contract in the U.S. Gulf of Mexico (38 floating rigs and 31 jack-up rigs), of which 65 were actively drilling (34 floating rigs and 31 jack-up rigs). The global offshore count for rigs under contract dropped 2% from December 2014 to February 2015. Unlike the land rigs, the effects of the decline in oil prices is not expected to significantly affect offshore rig counts for approximately three to six months or more. The Company believes that the number of rigs (semi-submersibles, drillships and jack-up rigs) under construction impacts its revenues because in certain cases, its customers order some of the Company’s products during the construction of such rigs. As a result, an increase in rig construction activity tends to favorably impact the Company’s backlog while a decrease in rig construction activity tends to negatively impact the Company’s backlog. According to IHS-Petrodata, at the end of 2014, 2013 and 2012, there were 228, 233 and 186 rigs, respectively; under construction and the expected delivery dates for the rigs under construction on February 10, 2015 are as follows: Floating Rigs Jack- Ups Total 2015 ............................................. 32 71 103 2016 ............................................. 22 53 75 2017 ............................................. 20 15 35 2018 ............................................. 9 — 9 After 2018 or unspecified delivery date ................. 6 — 6 89 139 228 30