According to Baker Hughes, Sep 3^rd week ending U.S. oil rig counts declined from the 16 month high level experienced throughout the previous week. Sep 3^rd week ending oil rig counts declined 3.9% from the previous week but remained 117.7% above previous year levels. The week-over-week decline in oil rig counts was the largest experienced throughout the past 15 months. Oil rig counts finished 46.6% below previous year levels and 55.6% below the three and a half year high levels experienced during November of 2018.

Oil rig counts declined throughout the first half of 2020 in response to lower WTI crude oil prices, which rebounded to a 33 month high level throughout the first week of Jul ’21 and remain just eight percent below the Oct ’18 highs during the week ending Sep 3^rd. Crude oil production volumes reached a 15 month high level during the final week of August, prior to returning to a six month low level during the week ending Sep 3^rd, a result of declines associated with Hurricane Ida. Oil production per rig declined to a 16 month low level.

Oil Rig Counts Peaked in Late 2014, Prior to Declining Sharply in Early 2015

Oil Rig Counts Followed Crude Oil Prices Lower Prior to Rebounding Throughout 2017-2018

Sep 3^rd Oil Rig Counts Declined 3.9% Week-Over-Week but Remained 117.7% Higher YOY

The Sep 3^rd Week-Over-Week Decline in Oil Rigs was the Largest in 15 Months

Horizontal Rigs Have Accounted for All of the Rebound in Total Rigs Since Aug ’20

Sep 3^rd Crude Oil Production Volumes Returned to a Six Month Low Level

Sep 3^rd Crude Oil Production per Rig Declined to a 16 Month Low Level