According to Baker Hughes, U.S. oil rig counts have increased over six of the past seven weeks, reaching a 15 week high during the week ending Jul 15th. Crude oil production rebounded slightly from the recent two year low volumes however production per rig finished at a 17 week low. 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 Jul 15th U.S. Oil Rigs Increased 1.7% From the Previous Week but Remain Down 44.0% 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 Early 2015 Declines in Vertical Rigs Remain the Most Significant on a Percentage Basis Jul 15th Crude Oil Production off of the Two Year Lows but Remains Down 11.1% YOY Jul 15th Production per Rig Continues to Decline, Reaching a 17 Week Low Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas