According to Baker Hughes, U.S. oil rig counts continued to decline throughout the second half of March, reached a new seven year low during the week ending Apr 1st. Crude oil production has declined from recent high output levels however production per rig continues to increase, finishing at a new six and a half year high during the week ending Apr 1st. 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 Apr 1st U.S. Oil Rigs Declined 2.7% From the Previous Week and are Down 54.9% 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, Down 4.2% YOY Apr 1st Crude Oil Production per Rig Finished at a New Six and a Half Year High Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas