by borrowings, requiring us to incur debt, or by the issuance of our common stock. These transactions involve numerous risks, and we cannot ensure that: 

• any acquisition would be successfully integrated into our operations and internal controls; 

• the due diligence conducted prior to an acquisition would uncover situations that could result in financial or legal exposure; 

• the use of cash for acquisitions would not adversely affect our cash available for capital expenditures and other uses; 

• any disposition, investment, acquisition or integration would not divert management resources from the operation of our business; or 

• any disposition, investment, acquisition or integration would not have a material adverse effect on our financial condition, results of operations or cash flows. 

Our operations and our customers’ operations are subject to a variety of governmental laws and regulations that may increase our costs, limit the demand for our products and services or restrict our operations. 

Our business and our customers’ businesses may be significantly affected by: 

• federal, state, local and foreign laws and other regulations relating to the oilfield operations, worker safety and the protection of the environment; 

• changes in these laws and regulations; and 

• the level of enforcement of these laws and regulations. 

In addition, we depend on the demand for our products and services from the oil and gas industry. This demand is affected by changing taxes, price controls and other laws and regulations relating to the oil and gas industry in general, including those specifically directed to offshore operations. For example, the adoption of laws and regulations curtailing exploration and development drilling for oil and gas for economic or other policy reasons could adversely affect our operations by limiting demand for our products. We cannot determine the extent to which our future operations and earnings may be affected by new legislation, new regulations or changes in existing regulations and enforcement thereof. 

Various new regulations intended to improve offshore safety systems and environmental protection have been issued since 2010 that have increased the complexity of the drilling permit process and may limit the opportunity for some operators to continue deepwater drilling in the U.S. Gulf of Mexico, which could adversely affect the Company’s financial operations. Third party challenges to industry operations in the U.S. Gulf of Mexico may also serve to further delay or restrict activities. If the new regulations, policies, operating procedures and possibility of increased legal liability are viewed by our current or future customers as a significant impairment to expected profitability on projects, they could discontinue or curtail their offshore operations, thereby adversely affecting our financial operations by decreasing demand for our products. 

Because of our foreign operations and sales, we are also subject to changes in foreign laws and regulations that may encourage or require hiring of local contractors or require foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction. If we fail to comply with any applicable law or regulation, our business, results of operations, financial position and cash flows may be adversely affected. 

