Technology improvements are in the pipeline. Carbo's existing line already yields better flow rates than competing products. It's next generation is expected to enhance output further, and facilitate drilling in more difficult formations. Pricing will remain an issue over the long haul due to the competitive nature of the energy industry. But Carbo should be positioned effectively to blunt lower cost competitors by delivering superior performance, enhancing its customers' return on investment. The fracking industry currently exists mainly in North America. Expansion to other parts of the world is likely. Weak economic conditions have delayed the energy industry's rebound, which in turn has affected Carbo's performance. The long term outlook remains bright, though.
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