According to Baker Hughes, U.S. oil rig counts have increased over 17 of the past 18 weeks through the end of December. Oil rig counts increased to a 12 month high during the week ending Dec 30th, finishing 66.1% above the lows experienced during May ’16. Crude oil production increased to a seven month high during recent weeks however production per rig finished at a 13 month low during the week ending Dec 30th. Crude oil production is expected to continue to increase slightly throughout coming months according to drilling productivity estimates compiled 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 30th U.S. Oil Rigs up 0.4% From the Previous Week but Remain Down 2.1% 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 30th Crude Oil Production off of the Two Year Lows but Remains Down 4.9% YOY Dec 30th Production per Rig Continued to Decline, Reaching a 13 Month Low Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas