According to Baker Hughes, U.S. oil rig counts rebounded to a two year high level during the week ending Apr 1^st. Apr 1^st week ending oil rig counts increased 0.4% from the previous week while finishing 58.2% above previous year levels. Oil rig counts remained 35.9% below pre-pandemic seasonal levels and 40.0% below the three and a half year high levels experienced during November of 2018, however. The current rebound in oil rig counts has been slower than rebounds from cyclical lows experienced throughout both 2009 and 2016.

Oil rig counts declined sharply throughout the first half of 2020 in response to lower WTI crude oil prices. WTI crude oil prices rebounded to a 13 year level throughout the final week of Mar ’22, however, prior to declining throughout the week ending Apr 1^st but remaining elevated, overall.

Apr 1^st week ending crude oil production volumes rebounded to a level equal to the 20 month high levels experienced throughout the final two weeks of the 2021 calendar year. Oil production per rig remained near recently experienced 23 month low levels.

Oil Rig Counts Followed Crude Oil Prices Lower Prior to Rebounding Throughout 2021

Apr 1^st Oil Rig Counts Increased 0.4% Week-Over-Week While Finishing 58.2% Higher YOY

Oil Rig Counts Have Finished Flat to Higher Over 41 of the Past 48 Weeks Through Apr 1^st

The Current Rebound in U.S. Oil Rig Counts Remains Slower Than Previous Cycles

Horizontal Rigs Have Accounted for 95% of the Rebound in Total Rigs Since Aug ’20

Apr 1^st Crude Oil Production Volumes Equaled Recent 20 Month High Levels

Apr 1^st Crude Oil Production per Rig Remained Near Recent 23 Month Low Levels