According to Baker Hughes, U.S. oil rig counts continued to decline throughout the first week of January, reached a new five and a half year low during the week ending Jan 8th. Crude oil production remains higher on a YOY basis but has declined from recent high output levels despite production per rig increasing to a new six year high during the week ending Jan 8th. The trend of declining crude oil production is expected to continue as drilling productivity estimates show declining production in coming months throughout areas accounting for 95% of recent production gains. U.S. Oil Rig Counts Declined in Response to Depressed Crude Oil Prices U.S. Oil Rig Counts Peaked in Late 2014, Prior to the Recent Declines Jan 8th U.S. Oil Rigs Declined 3.7% From the Previous Week and are Down 63.7% YOY The Recent Decline in U.S. Oil Rig Counts Since the Nov ’14 Peak has Been Significant Declines in U.S. Oil Rig Counts Have Decelerated Since Feb ’15 Declines in Vertical Rigs Remain the Most Significant on a Percentage Basis Crude Oil Production Has Declined From Recent Peak Output Levels but Remains up 0.4% YOY Crude Oil Production per Rig Increased to a New Six Year High During the Week Ending Jan 8th Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas