National Oilwell Varco 2000 Annual Report Download - page 6

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4
Sales of products are made on the basis of written orders and oral commitments. Our backlog for equipment at
recent year ends has been:
December 31, 2000 $ 282 million
December 31, 1999 114 million
December 31, 1998 83 million
December 31, 1997 291 million
Distribution Suppliers
National Oilwell obtains products sold by its Distribution Services business from a number of suppliers, including
our own Products and Technology segment. No single supplier of products is significant to our operations. We have
not experienced and do not expect a shortage of products that we sell.
Engineering
National Oilwell maintains a staff of engineers and technicians to:
- design and test new products, components and systems for use in drilling and pumping applications;
- enhance the capabilities of existing products; and
- assist our sales organization and customers with special projects.
Our product engineering efforts focus on developing technology to improve the economics and safety of drilling
and pumping processes, and to emphasize technology and complete drilling solutions.
Patents and Trademarks
National Oilwell owns or has a license to use a number of patents covering a variety of products. Although in the
aggregate these patents are of importance, we do not consider any single patent to be of a critical or essential
nature. In general, our business has historically relied upon technological capabilities, quality products and
application of expertise rather than patented technology.
Employees
As of December 31, 2000, we had a total of 5,000 employees, 2,868 of whom were salaried and 2,132 of whom
were paid on an hourly basis. Of this workforce, 1,014 employees are employed in Canada and 481 are employed
by our other foreign subsidiaries.
RISK FACTORS
Before purchasing any shares of National Oilwell common stock, you should consider carefully the following
factors, in addition to the other information contained or incorporated by reference herein.
National Oilwell Depends on the Oil and Gas Industry
National Oilwell is dependent upon the oil and gas industry and its willingness to explore for and produce oil and
gas. The industry's willingness to explore and produce depends upon the prevailing view of future product prices.
Many factors affect the supply and demand for oil and gas and therefore influence product prices, including: