According to Baker Hughes, U.S. oil rig counts increased over two consecutive weeks for the first time in nine months, reaching a six week high during the week ending Jun 10th. Crude oil production has declined from recent high output levels, reaching a 21 month low as of the week ending Jun 10th, while production per rig finished at a seven 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 Jun 10th U.S. Oil Rigs Increased 0.9% From the Previous Week but Remain Down 48.3% 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 Jun 10th Crude Oil Production Finished Down 9.1% YOY, Reaching a 21 Month Low Jun 10th Production per Rig Also Declined From Recent Highs, Reaching a Seven Week Low Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas