According to Baker Hughes, U.S. oil rig counts increased by five during the week ending Jul 10th but declined by seven during the week ending Jul 17th to a total of 638. Oil rig counts increased for two consecutive weeks prior to the most recent decline and remain off of the four and a half year low reached during the week ending Jun 26th. Despite the recent declines in oil rigs, weekly crude oil production figures show continued strength through June, however drilling productivity estimates show declining production in coming months throughout areas accounting for 95% of recent production gains. U.S. Oil Rig Counts Have Declined in Response to Depressed Crude Oil Prices U.S. Oil Rig Counts Peaked in Late 2014, Prior to the Recent Declines Jul 17th U.S. Oil Rigs Declined 1.1% From the Previous Week and are Down 58.9% 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 Continued to Decelerate Over Recent Weeks Vertical Rigs Have Recently Declined the Most on a Percentage Basis, Reaching New Lows Crude Oil Production Remains Strong, up 11.6% YOY Crude Oil Production per Rig Has Declined Slightly from the Recent Five Year High Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas