Page 41: of Maritime Reporter Magazine (June 2006)

June 2006 41 "The Energyfiles forecast for oil prices over the next five years is of erratic but generally flat levels in 2006 as oil demand growth is forced down by high- er oil prices; as new non-OPEC produc- tion enters the market from the deep waters of West Africa, from the Gulf of

Mexico and from the Caspian Sea; and as new LNG developments continue to replace oil use in Asia. Renewed oil price escalation is forecast after 2007 eventually leading to more cost inflation in the service sector. By 2010 the world will have entered a new, permanent energy capacity-constrained environ- ment waiting on real large-scale alterna- tives to oil in the transport sector."

The report concludes that "offshore production forecasts show that the lengthy era of relatively low-cost oil and gas sources has ended. Higher oil and gas prices are here to stay - an oil price collapse could only be driven by a world-scale economic and/or political crisis that interrupts demand growth."

As we move beyond 2010 the future of companies operating in the offshore exploration and production industry will become increasingly vulnerable to out- side economic and political circum- stances. The period from 2010 to 2015 is still expected to be "the time period when global oil production from all off- shore and onshore sources, including unconventional sources, will become seriously resource-limited and year-on- year declines in global oil output will begin. During the transition period, whilst new transport fuels will have to be developed, the world will need all the offshore oil it can get." (Source: The World Offshore Oil and

Gas Production & Spend Forecast,

Douglas-Westwood)

Circle 254 on Reader Service Card 2006WorldYearbook2006WorldYearbook2006WorldYearbook

Ameri-Force Craft

Services Acquires SyCom

Ameri-Force Craft Services Inc. has completed the acquisition of SyCom

Services, Inc., a defense industry engi- neering and professional staffing servic- es firm. SyCom will operate as a wholly owned subsidiary of Ameri-Force Craft

Services Inc. The SyCom Services acquisition is part of Ameri-Force's strat- egy to complement its existing position in the marine new construction and repair segment of the federal market with targeted growth in information technology, administration and engi- neering services. Ameri-Force Craft also announced that it has hired Beth

Cahallan as the Virginia Branch

Manager. Cahallan has more than 16 years experience in the contract labor support business in the Tidewater

Virginia Marine and Industrial markets.

She was the founder and owner operator of Alliance Staffing Services, a contract labor provider to the marine and indus- trial sector in Virginia. In addition to her hiring, Ameri-Force has gained the mar- ket share and employees of the former

Alliance Staffing Services.

Electrochem Announces

Record Quarter

Electrochem Commercial Power announced a 24 percent increase in cumulative sales revenue during the first quarter ending March 30, 2006, com- pared to the same quarter in the prior year. "We're very pleased to see 2006 off to a great start," said Richard Fagan,

Business Unit Controller, Greatbatch

Ltd. "We are successfully executing our manufacturing strategy and our new product introductions remain on track."

The revenue growth during the first quarter resulted from a rising demand for Electrochem lithium battery packs and cells from customers in various global markets including oil and gas, oceanography and seismic surveying.

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