According to Baker Hughes, U.S. oil rig counts remained at a 20 month high level during the week ending Dec 31^st. Dec 31^st week ending oil rig counts were unchanged from the previous week while finishing 79.8% above previous year levels. Oil rig counts remained 28.4% below pre-pandemic seasonal levels and 45.9% 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. More recently, WTI crude oil prices rebounded to a seven year level during the final week of October, prior to declining nine percent since.

Crude oil production volumes reached a 15 month high level during the final week of August, prior to returning to a six month low level during the first week of September, a result of declines associated with Hurricane Ida. Crude oil production levels rebounded to 19 month high levels throughout more recent weeks however oil production per rig remained near recently experienced 20 month low levels during the week ending Dec 31^st.

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

Dec 31^st Oil Rig Counts Remained Unchanged Week-Over-Week but Finished up 79.8% YOY

Oil Rig Counts Have Flat to Higher Over 31 of the Past 35 Weeks Thru Dec 31^st

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

Horizontal Rigs Have Accounted for 94% of the Rebound in Total Rigs Since Aug ’20

Dec 31^st Crude Oil Production Volumes Remained at a 19 Month High Level

Dec 31^st Crude Oil Production per Rig Remained Near Recent 20 Month Low Levels