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Wiki	Wiki Summary
Petroleum industry	The petroleum industry, also known as the oil industry or the oil patch, includes the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol).
Natural gas	Natural law (Latin: ius naturale, lex naturalis) is a system of law based on a close observation of human nature, and based on values intrinsic to human nature that can be deduced and applied independently of positive law (the express enacted laws of a state or society). According to natural law theory, all people have inherent rights, conferred not by act of legislation but by "God, nature, or reason." Natural law theory can also refer to "theories of ethics, theories of politics, theories of civil law, and theories of religious morality."In the Western tradition it was anticipated by the Pre-Socratics, for example in their search for principles that governed the cosmos and human beings.
Oil and gas industry in the United Kingdom	The oil and gas industry plays a central role in the economy of the United Kingdom. Oil and gas account for more than three-quarters of the UK's total primary energy needs.
California oil and gas industry	The California oil and gas industry has been a major industry for over a century. Oil production was a minor factor in the 19th century, with kerosene replacing whale oil and lubricants becoming essential to the machine age.
Economy of Brunei	The economy of Brunei, a small and wealthy country, is a mixture of foreign and domestic entrepreneurship, government regulation and welfare measures, and village traditions. It is almost entirely supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of GDP. Per capita GDP is high, and substantial income from overseas investment supplements income from domestic production.
Gas Gas	Gas Gas is a Spanish motorcycle manufacturer established in 1985 by Narcìs Casas and Josep Pibernat in Salt, Girona. The company specializes in off-road motorcycles for trials and enduro competitions.
Gulf of Mexico	The Gulf of Mexico (Spanish: Golfo de México) is an ocean basin and a marginal sea of the Atlantic Ocean, largely surrounded by the North American continent. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States; on the southwest and south by the Mexican states of Tamaulipas, Veracruz, Tabasco, Campeche, Yucatan, and Quintana Roo; and on the southeast by Cuba.
Deepwater Horizon oil spill	The Deepwater Horizon oil spill (also referred to as the "BP oil spill") was an industrial disaster that began on 20 April 2010, in the Gulf of Mexico on the BP-operated Macondo Prospect, considered to be the largest marine oil spill in the history of the petroleum industry and estimated to be 8 to 31 percent larger in volume than the previous largest, the Ixtoc I oil spill, also in the Gulf of Mexico. The U.S. federal government estimated the total discharge at 4.9 Mbbl (210 million US gal; 780,000 m3).
Gulf of Mexico basin	The formation of the Gulf of Mexico, an oceanic rift basin located between North America and the Yucatan Block, was preceded by the breakup of the Supercontinent Pangaea in the Late-Triassic, weakening the lithosphere. Rifting between the North and South American plates continued in the Early-Jurassic, approximately 160 million years ago, and formation of the Gulf of Mexico, including subsidence due to crustal thinning, was complete by 140 Ma.
Offshore oil and gas in the Gulf of Mexico (United States)	Offshore oil and gas in the Gulf of Mexico is a major source of oil and natural gas in the United States. The western and central Gulf of Mexico, which includes offshore Texas, Louisiana, Mississippi, and Alabama, is one of the major petroleum-producing areas of the United States.
Dead zone (ecology)	Dead zones are hypoxic (low-oxygen) areas in the world's oceans and large lakes. Hypoxia occurs when dissolved oxygen (DO) concentration falls to or below 2 ml of O2/liter.
Gulf of California	The Gulf of California (Spanish: Golfo de California), also known as the Sea of Cortés (Mar de Cortés) or Sea of Cortez, or less commonly as the Vermilion Sea (Mar Bermejo), is a marginal sea of the Pacific Ocean that separates the Baja California Peninsula from the Mexican mainland. It is bordered by the states of Baja California, Baja California Sur, Sonora, and Sinaloa with a coastline of approximately 4,000 km (2,500 mi).
Gulf Coast of Mexico	The Gulf Coast of Mexico or East Coast of Mexico stretches along the Gulf of Mexico from the border between Mexico and the United States at Matamoros, Tamaulipas all the way to the tip of the Yucatán Peninsula at Cancún. It includes the coastal regions along the Bay of Campeche.
Geography of Mexico	The geography of Mexico describes the geographic features of Mexico, a country in the Americas. Mexico is located at about 23° N and 102° W in the southern portion of North America.
Arithmetic	Arithmetic (from Ancient Greek ἀριθμός (arithmós) 'number', and τική [τέχνη] (tikḗ [tékhnē]) 'art, craft') is an elementary part of mathematics that consists of the study of the properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and extraction of roots. In the 19th century, Italian mathematician Giuseppe Peano formalized arithmetic with his Peano axioms, which are highly important to the field of mathematical logic today.
Special Activities Center	The Special Activities Center (SAC) is a division of the Central Intelligence Agency responsible for covert operations and paramilitary operations. The unit was named Special Activities Division (SAD) prior to 2015.
Operations management	Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Surgery	Surgery is a medical or dental specialty that uses operative manual and instrumental techniques on a person to investigate or treat a pathological condition such as a disease or injury, to help improve bodily function, appearance, or to repair unwanted ruptured areas.\nThe act of performing surgery may be called a surgical procedure, operation, or simply "surgery".
Bitwise operation	In computer programming, a bitwise operation operates on a bit string, a bit array or a binary numeral (considered as a bit string) at the level of its individual bits. It is a fast and simple action, basic to the higher-level arithmetic operations and directly supported by the processor.
Operation (mathematics)	In mathematics, an operation is a function which takes zero or more input values (called operands) to a well-defined output value. The number of operands (also known as arguments) is the arity of the operation.
Significant figures	Significant figures (also known as the significant digits, precision or resolution) of a number in positional notation are digits in the number that are reliable and necessary to indicate the quantity of something.\nIf a number expressing the result of a measurement (e.g., length, pressure, volume, or mass) has more digits than the number of digits allowed by the measurement resolution, then only as many digits as allowed by the measurement resolution are reliable, and so only these can be significant figures.
Fair Labor Standards Act of 1938	The Fair Labor Standards Act of 1938 29 U.S.C. § 203 (FLSA) is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits employment of minors in "oppressive child labor".
Direct labor cost	Direct labor cost is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a particular work order, or provision of a service. Also, we can say it is the cost of the work done by those workers who actually make the product on the production line.
Accounting standard	Publicly traded companies typically are subject to rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders.
Generally recognized as safe	Generally recognized as safe (GRAS) is a United States Food and Drug Administration (FDA) designation that a chemical or substance added to food is considered safe by experts under the conditions of its intended use. An ingredient with a GRAS designation is exempted from the usual Federal Food, Drug, and Cosmetic Act (FFDCA) food additive tolerance requirements.
Generally Accepted Auditing Standards	Generally Accepted Auditing Standards, or GAAS are sets of standards against which the quality of audits are performed and may be judged. Several organizations have developed such sets of principles, which vary by territory.
Generally Accepted Accounting Practice (UK)	Generally Accepted Accounting Practice in the UK, or UK GAAP, is the overall body of regulation establishing how company accounts must be prepared in the United Kingdom. Company accounts must also be prepared in accordance with applicable company law (for UK companies, the Companies Act 2006; for companies in the Channel Islands and the Isle of Man, companies law applicable to those jurisdictions).
Generally Accepted Accounting Principles (United States)	Generally Accepted Accounting Principles (GAAP or U.S. GAAP, pronounced like "gap") is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the latter differ considerably from GAAP and progress has been slow and uncertain.
Citation signal	In law, a citation or introductory signal is a set of phrases or words used to clarify the authority (or significance) of a legal citation as it relates to a proposition. It is used in citations to present authorities and indicate how those authorities relate to propositions in statements.
Video game	A video game or computer game is an electronic game that involves interaction with a user interface or input device – such as a joystick, controller, keyboard, or motion sensing device – to generate visual feedback. This feedback mostly commonly is shown on a video display device, such as a TV set, monitor, touchscreen, or virtual reality headset.
Competition	Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, individuals, economic and social groups, etc.
Time to completion	Time to completion (TTC) is a calculated amount of time required for any particular task to be completed. Completion is defined by the span from "conceptualization to fruition (delivery)", and is not iterative.
Matrix completion	Matrix completion is the task of filling in the missing entries of a partially observed matrix. A wide range of datasets are naturally organized in matrix form.
Input/output completion port	Input/output completion port (IOCP) is an API for performing multiple simultaneous asynchronous input/output operations in Windows NT versions 3.5 and later, AIX and on Solaris 10 and later. An input/output completion port object is created and associated with a number of sockets or file handles.
Complete metric space	In mathematical analysis, a metric space M is called complete (or a Cauchy space) if every Cauchy sequence of points in M has a limit that is also in M.\nIntuitively, a space is complete if there are no "points missing" from it (inside or at the boundary). For instance, the set of rational numbers is not complete, because e.g.
Completion of a ring	In abstract algebra, a completion is any of several related functors on rings and modules that result in complete topological rings and modules. Completion is similar to localization, and together they are among the most basic tools in analysing commutative rings.

Risk Factors
GULF ISLAND FABRICATION INC Item 1A Risk Factors Cautionary Statements Our business is subject to significant risks
We caution readers that the following important factors, could affect our actual consolidated results and could cause our actual consolidated results in the future to differ materially from the goals and expectations expressed in the forward-looking statements contained in this report and in any other forward-looking statements made by us or on our behalf
We are vulnerable to the potential difficulties associated with our recent expansion
We have experienced significant growth in the past year through our recent acquisition of the Gulf Marine facilities
We believe that our future success depends on our ability to successfully integrate the Gulf Marine operation into our business, and to effectively manage the rapid growth that we have experienced and the demands from increased responsibility on our management personnel
The following factors could present difficulties to us: • loss of sufficient executive-level personnel; • increased administrative burden; and • increased logistical problems common to large, expansive operations
If we do not manage these potential difficulties successfully, our operating results could be adversely affected
We are subject to the cyclical nature of the oil and gas industry
Our business depends primarily on the level of activity by the oil and gas companies in the Gulf of Mexico and along the Gulf Coast
This level of activity has traditionally been volatile as a result of fluctuations in oil and gas prices and their uncertainty in the future
The purchases of the products and services we provide are, to a substantial extent, deferrable in the event oil and gas companies reduce capital expenditures
Therefore, the willingness of our customers to make expenditures is critical to our operations
The levels of such capital expenditures are influenced by: • oil and gas prices and industry perceptions of future prices; • the cost of exploring for, producing and delivering oil and gas; • the ability of oil and gas companies to generate capital; • the sale and expiration dates of offshore leases in the United States and overseas; 14 ______________________________________________________________________ [41]Table of Contents • the discovery rate of new oil and gas reserves in offshore areas; and • local and international political and economic conditions
Although activity levels in production and development sectors of the oil and gas industry are less immediately affected by changing prices and as a result, less volatile than the exploration sector, producers generally react to declining oil and gas prices by reducing expenditures
This has in the past and may in the future, adversely affect our business
We are unable to predict future oil and gas prices or the level of oil and gas industry activity
A prolonged low level of activity in the oil and gas industry will adversely affect the demand for our products and services and our financial condition and results of operations
We might be unable to employ a sufficient number of skilled workers
Our ability to remain productive and profitable depends substantially on our ability to attract and retain skilled construction workers, primarily welders, fitters and equipment operators
In addition, our ability to expand our operations depends not only upon customer demand but also on our ability to increase our labor force
The demand for such workers is high and the supply is extremely limited, especially during periods of high activity in the oil and gas industry
While we believe our relationship with our skilled labor force is good, a significant increase in the wages paid by competing employers could result in a reduction in our skilled labor force, increases in the wage rates we may pay, or both
If either of these occurred, in the near-term the profits expected from work in progress could be reduced or eliminated and, in the long-term, to the extent such wage increases could not be passed on to our customers, our production capacity could be diminished and the growth potential could be impaired
As noted previously, we recently lost employees to companies paying higher wages in connection with the region’s rebuilding efforts following the 2005 hurricane season, although we have not yet determined the full effects of these losses
Our backlog is based on management’s estimate of the direct labor hours required to complete, and the remaining revenue to be recognized with respect to, those projects as to which a customer has authorized us to begin work or purchase materials pursuant to written contracts, letters of intent or other forms of authorization
Often, however, management’s estimates are based on incomplete engineering and design specifications
As engineering and design plans are finalized or changes to existing plans are made, management’s estimate of the direct labor hours required to complete and price at completion for such projects is likely to change
In addition, all projects currently included in our backlog are subject to termination at the option of the customer, although the customer in that case is generally required to pay us for work performed and materials purchased through the date of termination and, in some instances, pay us cancellation fees
However, due to the large dollar amounts of backlog estimated for a few projects, a termination of any one of these projects could substantially decrease our backlog, and could have a material adverse effect on our revenue, net income and cash flow if the project is large
The dangers inherent in our operations and the limits on insurance coverage could expose us to potentially significant liability costs and materially interfere with the performance of our operations
The fabrication of large steel structures involves operating hazards that can cause personal injury or loss of life, severe damage to and destruction of property and equipment and suspension of operations
The failure of such structures during and after installation can also result in similar injuries and damages
In addition, certain activities engaged in by employees of Dolphin Services that are not engaged in by our other employees, including piping interconnect and other service activities conducted on offshore platforms and activities performed on the spud barges owned by Dolphin Services, are covered by provisions of the Jones Act, the Death on the High Seas Act and general maritime law, which laws operate to make the liability limits established by state workers’ compensation laws inapplicable to these employees and, instead, permit them or their representatives to pursue actions against us for damages or job-related injuries, with generally no limitations on our potential liability
15 ______________________________________________________________________ [42]Table of Contents Our ownership and operation of vessels can also give rise to large and varied liability risks, such as risks of collisions with other vessels or structures, sinkings, fires and other marine casualties, which can result in significant claims for damages against both us and third parties for, among other things, personal injury, death, property damage, pollution and loss of business
Litigation arising from any such occurrences may result in our being named as a defendant in lawsuits asserting large claims
In addition, due to their proximity to the Gulf of Mexico, our facilities are subject to the possibility of physical damage caused by hurricanes or flooding, as occurred in 2005
Although we believe that our insurance coverage is adequate, there can be no assurance that we will be able to maintain adequate insurance in the future at rates we consider reasonable or that our insurance coverage will be adequate to cover future claims that may arise
Successful claims for which we are not fully insured may adversely affect our working capital and profitability
In addition, changes in the insurance industry have generally led to higher insurance costs and decreased availability of coverage
The availability of insurance covering risks we and our competitors typically insure against may decrease, and the insurance that we are able to obtain may have higher deductibles, higher premiums and more restrictive policy terms
Our industry is highly competitive
The offshore platform fabrication industry is highly competitive and influenced by events largely outside of our control
Contracts for our services are generally awarded on a competitive bid basis, and our customers consider many factors when awarding a job
These factors include price, the contractor’s ability to meet the customer’s delivery schedule, and to a lesser extent, the availability of technically capable personnel and facility space, the contractor’s efficiency, condition of equipment, reputation, safety record and customer relations
Although we believe that our reputation for safety and quality service is good, we cannot guarantee that we will be able to maintain our competitive position
We compete with both large and small companies for available jobs, and certain of our competitors have greater financial and other resources than we do
In addition, because of subsidies, import duties and fees, taxes imposed on foreign operators and lower wage rates in foreign countries along with fluctuations in the value of the US dollar and other factors, we may not be able to remain competitive with foreign contractors for projects designed for use in international locations as well as those designed for use in the Gulf of Mexico
See “Business and Properties—Competition” for more information regarding the competitive nature of our industry
Pricing structures common in the offshore platform fabrication industry may not provide sufficient protection from cost overruns
Under fixed-price contracts, we receive the price fixed in the contract, subject to adjustment only for change orders placed by the customer
Under typical alliance/partnering arrangements, the parties agree in advance to a target price that includes specified levels of labor and material costs and profit margins
If the project is completed at less cost than that targeted in the contract, the contract price is reduced by a portion of the savings
If the cost to completion is greater than target costs, the contract price is increased, but generally to the target price plus the actual incremental cost of materials and direct labor costs
Accordingly, under alliance/partnering arrangements, we have some protection against cost overruns but must share a portion of any cost savings with the customer
Under cost-plus arrangements, we receive a specified fee in excess of our direct labor and material cost and thus are protected against cost overruns but do not benefit directly from cost savings
16 ______________________________________________________________________ [43]Table of Contents The revenue, costs and gross profit realized on a contract will often vary from the estimated amounts on which such contracts were originally based due to, among other things: • changes in the availability and cost of labor and materials, • variations in productivity from the original estimates, and • errors in estimates or bidding
These variations and the risks inherent in our industry may result in revenue and gross profits different from those originally estimated and reduced profitability or losses on projects
Depending on the size of a project, variations from estimated contract performance can have a significant impact on our operating results for any particular fiscal quarter or year
” Our method of accounting for revenue could result in an earnings charge
Most of our revenue is recognized on a percentage-of-completion basis based on the ratio of direct labor hours worked to the total estimated direct labor hours required for completion
Accordingly, contract price and cost estimates are reviewed monthly as the work progresses, and adjustments proportionate to the percentage of completion are reflected in revenue for the period when such estimates are revised
To the extent that these adjustments result in a reduction or elimination of previously reported profits, we are required to recognize a charge against current earnings, which may be significant depending on the size of the project or the adjustment
We are susceptible to adverse weather conditions in the Gulf of Mexico
Our operations have historically been affected by the seasonal differences in weather patterns in the Gulf of Mexico, as well as daylight hours
Since most of our construction activities take place outdoors, the number of direct labor hours worked generally declines in the winter months due to an increase in rainy and cold conditions and a decrease in daylight hours
The seasonality of oil and gas industry activity as a whole in the Gulf Coast region also affects our operations
Our customers often schedule the completion of their projects during the summer months in order to take advantage of the milder weather during such months for the installation of their platforms
The rainy weather, tropical storms, hurricanes and other storms prevalent in the Gulf of Mexico and along the Gulf Coast throughout the year, such as Hurricanes Katrina and Rita in 2005, may also affect our operations
Accordingly, our operating results may vary from quarter to quarter, depending on factors outside of our control
As a result, full year results are not likely to be a direct multiple of any particular quarter or combination of quarters
We depend on key personnel
Our success depends to a great degree on the abilities of our key management personnel, particularly our Chief Executive Officer and other high-ranking executives
The loss of the services of one or more of these key employees could adversely affect us
We depend on significant customers
We derive a significant amount of our revenue from a small number of major and independent oil and gas companies, although not necessarily the same customers from year to year
Because the level of fabrication that we may provide to any particular customer depends, among other things, on the size of that customer’s capital expenditure budget devoted to platform construction plans in a particular year and our ability to meet the customer’s delivery schedule, customers that account for a significant portion of revenue in one fiscal year may represent an immaterial portion of revenue in subsequent years
However, the loss of a significant customer for any reason, including a sustained decline in that customer’s capital expenditure budget or competitive factors, can result in a substantial loss of revenue and could have a material adverse effect on our operating performance
17 ______________________________________________________________________ [44]Table of Contents The nature of our industry subjects us to compliance with regulatory and environmental laws
Our operations and properties are materially affected by state and federal laws and other regulations relating to the oil and gas industry in general, and are also subject to a wide variety of foreign, federal, state and local environmental laws and regulations, including those governing discharges into the air and water, the handling and disposal of solid and hazardous wastes, the remediation of soil and groundwater contaminated by hazardous substances and the health and safety of employees
Further, compliance with many of these laws is becoming increasingly complex, stringent and expensive
Many impose “strict liability” for damages to natural resources or threats to public health and safety, rendering a party liable for the environmental damage without regard to its negligence or fault
Certain environmental laws provide for strict, joint and several liability for remediation of spills and other releases of hazardous substances, as well as damage to natural resources
In addition, we could be subject to claims alleging personal injury or property damage as a result of alleged exposure to hazardous substances
Such laws and regulations may also expose us to liability for the conduct of or conditions caused by others, or for acts that were in compliance with all applicable laws at the time such acts were performed
We believe that our present operations substantially comply with applicable federal and state pollution control and environmental protection laws and regulations
We also believe that compliance with such laws has had no material adverse effect on our operations
However, such environmental laws are changed frequently
Sanctions for noncompliance may include revocation of permits, corrective action orders, administrative or civil penalties and criminal prosecution
We are unable to predict whether environmental laws will materially adversely affect our future operations and financial results
See “Business and Properties—Government and Environmental Regulations
” The demand for our services is also affected by changing taxes, price controls and other laws and regulations relating to the oil and gas industry generally
Offshore construction and drilling in certain areas has also been opposed by environmental groups and, in certain areas, has been restricted
To the extent laws are enacted or other governmental actions are taken that prohibit or restrict offshore construction and drilling or impose environmental protection requirements that result in increased costs to the oil and gas industry in general and the offshore construction industry in particular, our business and prospects could be adversely affected, although such restrictions in the areas of the Gulf of Mexico where our products are used have not been substantial
We cannot determine to what extent future operations and earnings may be affected by new legislation, new regulations or changes in existing regulations
Until our recent acquisition of the Gulf Marine facilities, the Houma Navigation Canal provided the only means of access from our facilities to open waters
The Houma Navigation Canal is considered to be a navigable waterway of the United States and, as such, is protected by federal law from unauthorized obstructions that would hinder water-borne traffic
Federal law also authorizes federal maintenance of the canal by the United States Corps of Engineers
The canal requires bi-annual dredging to maintain its water depth and, while federal funding for this dredging has been provided for over 30 years, there is no assurance that Congressional appropriations sufficient for adequate dredging and other maintenance of the canal will be continued indefinitely
If sufficient funding were not appropriated for that purpose, the Houma Navigation Canal could become impassable by barges or other vessels required to transport many of our products and could result in material and adverse affects on our operations and financial position