Climate Change

We believe there are both risks and opportunities arising from global climate change initiatives. In terms of opportunities, the regulation of greenhouse gases (GHGs) and introduction of formal technology incentives, such as enhanced oil recovery, carbon sequestration and low carbon fuel standards, could benefit us in a variety of ways.

However, future restrictions on emissions of GHGs, or related measures to encourage use of renewable energy, could have a significant impact on our future operations and reduce demand for our products. And to the extent that international efforts are not successful in preventing climate change, any resulting increase in severity and frequency of storms, higher sea levels, droughts, floods, extreme temperatures or other extreme environmental effects may have a material adverse impact on our business, financial condition, results of operations and cash flows.