Natural Gas Compressor Industry Considerations Sample Clauses

Natural Gas Compressor Industry Considerations. The Company's profitability is, in part, dependent upon the current market for natural gas. Since 1982, there has been an over-supply of natural gas and, consequently, prices have declined significantly and remain at relatively low levels. In general, future prices of natural gas are dependent upon numerous factors beyond the control of the company, including competition, conservation efforts and various economic, political and regulatory developments. The current unsettled energy market, highlighted by recent political events in the Middle East and elsewhere, make it particularly difficult to estimate future prices of natural gas. Although declines in natural gas prices tend to decrease efforts to discover and develop new natural gas reserves, thus placing greater reliance upon older, developed natural gas reserves (which reliance requires additional compression in order to deliver the remaining natural gas reserves to market) a significant decline in the price of natural gas could result in the widespread failure of natural gas producers and would likely have a material adverse effect on the Company's financial condition and results of operation.
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