Everybody remembers that 1981 was a banner year for the petroleum industry. But few were able to predict the extent of the worldwide economic downturn of 1982 and its effect on our business. Demand is down, prices are down, drilling activity is down and occasional scarlet headlines point to a few spectacular failures with the clear implication that the entire petroleum industry is on the rocks. That needs to be put in perspective. First, the perspective of other industries. Compared to banking, savings and loans, automobiles, housing, or steel, and the list is legion, petroleum is still the cream of the crop. Next, the perspective of our own petroleum industry’s history. On any scale, 1982 is disappointing only when compared with the peak years of 1980 and 1981.