Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2020

18. Concentrations of Credit Risk

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

We believe we have placed our demand deposits and temporary cash investments with high credit-quality financial institutions. At December 31, 2020 and 2019, our demand deposits and temporary cash investments consisted of the following (in thousands):

	2020			2019
Deposits in FDIC and SIPC-insured institutions under insurance limits	$	1,000		$	1,250
Deposits in FDIC and SIPC-insured institutions over insurance limits		227,961			179,375
Deposits in foreign banks		1,966			2,309
		230,927			182,934
Less outstanding checks and other reconciling items		(6,012	)		(8,749	)
Cash and cash equivalents	$	224,915		$	174,185

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 we provide services. As is general industry practice, we typically do not require customers to provide collateral. A $5.6 million and $5.7 million provision for credit loss was recognized in 2020 and 2019, respectively, in relation to accounts receivable balances that were estimated to be uncollectible. No credit loss expense was recognized in 2018.