As we discussed on our last conference call, the contingency opportunity to across all of our core market still remain cautious with regards to the timing of future awards. Construction opportunities in the aboveground storage tank business are increasing as a result of ongoing development of the Canadian oil sands and related pipeline construction. In addition, we are bidding projects for a variety of companies that seeks to expand their storage assets.
Matrix Service is well-positioned to respond quickly to these opportunities to the development of our key engineering and construction personnel and utilization of our fabrication facilities. The AST repair maintenance business is also showing some signs of improvement which is encouraging.
As we stated on our last call, we continue to take a cautious view of the downstream petroleum market in general as the near term outlook really remains uncertain. The reason up trend in refinery utilization rates and improving cracks spreads suggest that the cycle of domestic turnaround is likely to firm up during the course of calendar year 2011. While the current activity has picked up the level of competition continues to make it difficult to capture work at effective gross margins. We do believe the market conditions are likely to improve in the intermediate to long term as the economy improves.
We continue to pursue opportunities in the upstream petroleum markets as we discussed in our last call in the recently secured project awards. Our capabilities allows us to provide mechanical services and fabricated equipment to support new drilling programs and planned expansions throughout the western U.S. and western Canada. These opportunities represent significant revenue potential for the company as we move into calendar years 2011 and 2012. The power electrical and instrumentation market continues to represent a sizeable growth area for the company over the intermediate and long term as a result of our expanded operations in the northeast corridor and the mid Atlantic states.Read the rest of this transcript for free on seekingalpha.com