D. James Factors Quotations

Since we have confidence that these favorable factors will continue in the future, we are pleased to extend the term of our agreement.

While a near-term supply disruption from Venezuela does not seem likely, the country's inability to meet its OPEC quota makes the government famously hawkish when it comes to defending an oil price floor for the group. This fact, along with a lack of foreign investment in the Venezuelan energy sector, should be seen as bullish factors for global oil prices. We do not see this changing until such time as the government adopts more favorable policies towards foreign oil companies.