According to Baker Hughes, U.S. oil rig counts declined slightly during the week ending Jan 19^th, finishing at a nine week low. Jan 19^th U.S. oil rig counts finished 0.7% below the previous week but remained higher on a YOY basis for the 55^th consecutive week, finishing up 35.6%. Jan 19^th week ending crude oil production increased to a long-term record high level, contributing to oil production per rig increasing to an eight month high. Crude oil production is expected to strengthen 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 Declining Sharply in Early 2015 Jan 19^th U.S. Oil Rigs Finished Down 0.7% Week-Over-Week but Remain up 35.6% YOY The Declines in U.S. Oil Rig Counts Since the Nov ’14 Peak Remain Significant U.S. Oil Rig Counts Declined Significantly in Early 2015 Prior to Rebounding Declines in Vertical Rigs Remain the Most Significant on a Percentage Basis Jan 19^th Weekly U.S. Crude Oil Production Increased to the Highest Figure on Record Jan 19^th Crude Oil Production per Rig Increased to an Eight Month High Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas