In 2015, Alaska leasing activity and exploration drilling followed the trend seen across the upstream industry as operators decreased budgets in response to the dramatic collapse in oil prices. In terms of acres leased, overall activity across the state reached a 10-year low and fell by 70% year-over-year. In 2016, we expect the trend of lower discretionary spend, exploration drilling, and leasing levels to continue. The current environment does present an opportunity for an operator to gain a significant position in a well-understood conventional basin; however, costs related to conventional exploration and development have not yet decreased as much as those related to unconventional development. Despite prevailing commodity prices and high costs, the project pipeline on the North Slope is the busiest it has been in years, with five projects potentially reaching first oil before 2020.