According to Baker Hughes, U.S. oil rig counts continued to decline throughout the first half of May, reaching a new six and a half year low during the week ending May 13th. 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 May 13th. 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 May 13th U.S. Oil Rigs Declined 3.0% From the Previous Week and are Down 51.8% 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 Crude Oil Production Has Declined From Recent Peak Output Levels, Down 5.1% YOY May 13th 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