According to Baker Hughes, U.S. oil rig counts have increased over 16 of the past 18 weeks through the end of October. Oil rig counts increased to a 37 week high during the week ending Oct 21st, prior to declining slightly throughout the most recent week of available data. Crude oil production remained slightly above the recent two year low volumes experienced during the first week of Jul ’16 however production per rig remained near the 38 week low experienced during the week ending Oct 21st. 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 Oct 28th U.S. Oil Rigs Down 0.5% From the Previous Week and 23.7% 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 Early 2015 Declines in Vertical Rigs Remain the Most Significant on a Percentage Basis Oct 28th Crude Oil Production off of the Two Year Lows but Remains Down 7.0% YOY Oct 28th Production per Rig up Slightly From the Previous 38 Week Low Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas