b'requires natural gas to be processed at an onshore gas processing plant. Once the liquids are removedand fractionated (broken into the individual hydrocarbon chains for sale), the products are sold by theprocessing plant. The residue gas left over is sold to natural gas purchasers as natural gas sales(referenced above). The contracts for NGL sales are with the processing plant. The prices received forthe NGLs are either tied to indices or are based on what the processing plant can receive from a thirdparty purchaser. The gas processing and subsequent sales of NGLs are subject to contracts with longerterms and dedications of lease production from the Companys leases offshore.There are a variety of factors which affect the market for oil, including the proximity and capacityof transportation facilities, demand for oil both within the local market and beyond, the marketing ofcompetitive fuels and the effects of government regulations on oil production and sales. Our revenuecan be materially affected by current economic conditions and the price of oil. However, based on thecurrent demand for crude oil and the fact that alternative purchasers are available, we believe that theloss of our marketing agent and/or any of the purchasers identified by our marketing agent would nothave a long-term material adverse effect on our financial position or results of operations.CompetitionThe oil and gas industry is competitive. We encounter strong competition from other independentoperators and from major oil companies in acquiring licenses and leases. Many of these competitorshave financial and technical resources and staff that are substantially larger than ours. As a result, ourcompetitors may be able to pay more for desirable oil and natural gas assets, or to evaluate, bid forand purchase a greater number of licenses and leases than our financial or personnel resources willpermit. Furthermore, these companies may also be better able to withstand the financial pressures oflower commodity prices, unsuccessful wells, volatility in financial markets and generally adverse globaland industry-wide economic conditions. These companies may also be better able to absorb the burdensresulting from changes in relevant laws and regulations, which may adversely affect our competitiveposition.Historically, we have also been affected by competition for drilling rigs and the availability ofrelated equipment. Higher commodity prices generally increase the demand for drilling rigs, supplies,services, equipment and crews. Shortages of, or increasing costs for, experienced drilling crews andequipment and services may restrict our ability to drill wells and conduct our operations.The oil and gas industry as a whole has experienced continued volatility. Dated Brent crude, thebenchmark for our international oil sales, ranged from approximately $50 to $86 per barrel during2018. HLS crude, the benchmark for our U.S. Gulf of Mexico oil sales, which generally trades at aslight discount to Dated Brent, ranged from approximately $63 to $75 during 2018. Excluding theimpact of hedges, our realized price for 2018 was $69.00 per barrel. We believe lower prices willgenerally result in greater availability of assets and necessary equipment. However, the impacts on theindustry from a competitive perspective are not entirely known.Title to PropertyOther than as specified in this annual report on Form 10-K, we believe that we have satisfactorytitle to our oil and natural gas assets in accordance with standards generally accepted in theinternational oil and gas industry. Our licenses and leases are subject to customary royalty and otherinterests, liens under operating agreements and other burdens, restrictions and encumbrancescustomary in the oil and gas industry that we believe do not materially interfere with the use of, oraffect the carrying value of, our interests.37'