According to Baker Hughes, U.S. oil rig counts continued to fall throughout the second half of September, declining by eight during the week ending Sep 18th and an additional four during the week ending Sep 25th to a total of 640. Oil rig counts increased to a 17 week high throughout the final weeks of August but regressed back to a ten week low during the week ending Sep 25th. Crude oil production remains higher on a YOY basis but has declined from recent high output levels as production per rig has fallen from the five year high experienced in late Jun ’15. The trend of declining crude oil production is expected to continue as drilling productivity estimates show declining production in coming months 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 the Recent Declines Sep 25th U.S. Oil Rigs Declined 0.6% From the Previous Week and are Down 59.8% 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 Decelerated Since February Declines in Vertical Rigs Remain the Most Significant on a Percentage Basis Crude Oil Production Has Declined From Recent Peak Output Levels but Remains up 2.9% YOY Crude Oil Production per Rig has Declined From the Recent Five Year High Resilient Production Despite a Collapse in Price & Rigs on Same Trajectory as ’08 Natural Gas