According to Baker Hughes, U.S. oil rig counts have increased over four of the past five weeks, reaching a ten week high during the week ending Jul 1st. Crude oil production has declined from recent high output levels, reaching a two year low as of the week ending Jul 1st, while production per rig finished at a 14 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 1st U.S. Oil Rigs Increased 3.3% From the Previous Week but Remain Down 46.7% 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 Jul 1st Crude Oil Production Finished Down 12.2% YOY, Reaching a Two Year Low Jul 1st Production per Rig Also Declined From Recent Highs, Reaching a 14 Week Low Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas