Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2015

15. Concentrations of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of demand deposits, temporary cash investments and trade receivables.

The Company believes it has placed its demand deposits and temporary cash investments with high credit-quality financial institutions. At December 31, 2015 and 2014, the Company’s demand deposits and temporary cash investments consisted of the following (in thousands):

	2015			2014
Deposits in FDIC and SIPC-insured institutions under insurance limits	$	617		$	636
Deposits in FDIC and SIPC-insured institutions over insurance limits		130,330			1,420
Deposits in foreign banks		15,303			43,664
		146,250			45,720
Less outstanding checks and other reconciling items		(32,904	)		(2,708	)
Cash and cash equivalents	$	113,346		$	43,012

Concentrations of credit risk with respect to trade receivables are primarily focused on companies involved in the exploration and development of oil and natural gas properties. The concentration is somewhat mitigated by the diversification of customers for which the Company provides services. As is general industry practice, the Company typically does not require customers to provide collateral. No significant losses from individual customers were experienced during the years ended December 31, 2015, 2014 or 2013. No provision for bad debts was recognized in 2015, 2014 or 2013.