According to Baker Hughes, U.S. oil rig counts reached a 21 month high level during the week ending Jan 28^th. Jan 28^th week ending oil rig counts increased 0.8% from the previous week while finishing 67.8% above previous year levels. Oil rig counts remained 26.7% below pre-pandemic seasonal levels and 44.3% 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 seven year level during the week ending Jan 28^th.

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 20 month high level throughout Dec ’21 prior to returning to a two month low level throughout the week ending Jan 28^th. Jan 28^th oil production per rig also reached a 21 month low level.

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

Jan 28^th Oil Rig Counts Increased 0.8% Week-Over-Week While Finishing 67.8% Higher YOY

Oil Rig Counts Have Finished Flat to Higher Over 34 of the Past 39 Weeks Through Jan 28^th

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

Jan 28^th Crude Oil Production Volumes Returned to a Two Month Low Level

Jan 28^th Crude Oil Production per Rig Declined to a 21 Month Low Level