National Oilwell Varco 2015 Annual Report Download - page 39

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Table of Contents
The following table details the U.S., Canadian, and international rig activity and West Texas Intermediate Oil prices for the past nine quarters ended
December 31, 2015 on a quarterly basis:
Source: Rig count: Baker Hughes, Inc. (www.bakerhughes.com); West Texas Intermediate Crude Price: Department of Energy, Energy Information
Administration ( www.eia.doe.gov ).
The average price per barrel of West Texas Intermediate Crude was $48.71 in 2015, a decrease of 48% over the average price for 2014 of $93.26 per barrel.
The average natural gas price was $2.61 per mmbtu, a decrease of 40% compared to the 2014 average of $4.38 per mmbtu. Average rig activity worldwide
decreased 35% for the full year in 2015 compared to 2014. The average crude oil price for the fourth quarter of 2015 was $41.95 per barrel, and natural gas
was $2.11 per mmbtu.
At February 12, 2016, there were 763 rigs actively drilling in North America, compared to 781 rigs at December 31, 2015; a decrease of 2% from year end
2015 levels. The price of oil decreased to $29.76 per barrel and gas decreased to $1.99 per mmbtu at February 12, 2016, representing a 22% decrease in oil
prices and a 17% decrease in gas prices from the end of 2015.

National Oilwell Varco, Inc. generated revenue of $14.8 billion in 2015, a decrease of 31% from the prior year due to declining oil and gas prices resulting in
reduced drilling activity and demand for oilfield equipment and services. Average 2015 worldwide rig count (as measured by Baker Hughes) decreased 35%
in comparison to 2014. The broad-based decline in activity led all four of the Company’s reporting segments to post lower year-over-year revenues in
comparison to 2014.
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