According to Baker Hughes, U.S. oil rig counts have increased over 13 of the past 14 weeks through the end of September. Oil rig counts increased to a 33 week high during the week ending Sep 30th, finishing 34.5% above the lows experienced during May ’16. Crude oil production remained slightly above the recent two year low volumes experienced during the first week of Jul ’16 however production per rig finished at a 34 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 Sep 30th U.S. Oil Rigs up 1.7% From the Previous Week but Remain Down 30.8% 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 Sep 30th Crude Oil Production off of the Two Year Lows but Remains Down 7.7% YOY Sep 30th Production per Rig Continues to Decline, Reaching a 34 Week Low Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas