According to Baker Hughes, U.S. oil rig counts have increased over 13 of the past 14 weeks through the end of November. Oil rig counts increased to a 44 week high during the week ending Dec 2nd, finishing 50.9% above the lows experienced during May ’16. Crude oil production remained slightly above the two year low experienced during the first week of Jul ’16 however production per rig finished at a 45 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 Dec 2nd U.S. Oil Rigs up 0.6% From the Previous Week but Remain Down 12.5% 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 Dec 2nd Crude Oil Production off of the Two Year Lows but Remains Down 5.1% YOY Dec 2nd Production per Rig Continued to Decline, Reaching a 45 Week Low Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas