Cindy Taylor: We are — we have a lot of bidding and quoting around that. I can’t necessarily correlate it to the geopolitical environment, but they are on the rise, quite frankly. And a lot of times, these orders do come in large and can span multiple years. And so it is my expectation to see an increase in military ordering. Again, this is an adaptation of core technology we’ve used in oil and gas particularly some of our elastomer and flex joint type technology used in military applications, and we’ve done so for decades. But to your point, there is fundamental grounds for those to improve.
John Daniel : Okay. And then here’s the dumb guy question for me because I don’t know much about seabed minerals, but what’s the opportunity set there in harvesting that.
Cindy Taylor: I think they’re incredibly robust. We’re in the extreme early stages of that. And so I think we’ve talked before, and there’s a lot of media and press around an area called the Clarion Clipperton Zone, which is I always say a layman would say, middle of nowhere, deepwater pacific. And — but that is buffered by an international seabed authorities, and that is slower to lift as opposed to sovereign international waters where we are getting more bidding opportunities simply because one country controls the permitting in those areas, and that is the case with the order we received in this quarter. There are other countries that are actively looking at these opportunities. So I think sovereign-controlled international waters will move faster possibly the Clarion Clipperton Zone, but these areas are extraordinarily resource rich with the metals and minerals required, particularly for alternative energy transition, battery technology, wind, et cetera, solar.
So you know you have to access the resource. And then you sit because right now, there’s a lot of countries that feel highly dependent on China for these metals and minerals, and they have a huge percentage of global supplies. So diversification is front and center. And then energy security and advancement of your own country’s internal needs is a focus for these countries that tells me unequivocally you’re going to advance it, particularly if it’s in your sovereign control. And I will say in addition to that, there’s increasing environmental concerns around open pit mining around the world. And so there has to be all types of environmental assessments on the seabed, but it seems like there will be less environmental concerns and consequences with this activity.
Then there will be with open pit mining in order to grow the energy transition, right?
John Daniel : All right. Would you be willing to hazard a guess as to how many systems in that 5 to 7 years could be an opportunity for you?
Cindy Taylor: Unfortunately, I can’t do that. I wouldn’t.
Lloyd Hajdik : John, I’ll also point out. On our website, we have an animation of the Deepsea Mineral Riser System in operation. So I encourage you to go take a look at that.
John Daniel : Yes. I will do that. Thanks, guys.
Operator: And there are no further questions at this time. I’d like to turn the call back over to Cindy Taylor for closing remarks.
Cindy Taylor: Thank you so much. Thanks for joining us today. I appreciate the interest. As always, it’s a busy, busy day with a lot of companies reporting. I will leave my thoughts that we’re headed into kind of a multiyear improved environment for the conventional oil and gas business led by international and deepwater, I certainly think the U.S. will be robust last year, U.S. land activity robust next year as well, which sets it up for a fundamentally strong outlook for our company and for that of others in the space, I do think that for our size, we are differentiated because of the higher technology products that we’ve had working in deepwater basins around the world for many decades, quite frankly. And are doing and making a lot of inroads towards introducing those technologies and transitioning those into new applications, which I think, again, for our size is a bit unique, and you’re seeing that realized, not just talked about, but realized in our revenue stream right now and in our backlog and bookings.
