According to Baker Hughes, U.S. oil rig counts continued to increase throughout the week ending Mar 2^nd, finishing at a two and a half year high. Mar 2^nd U.S. oil rig counts finished 0.1% above the previous week while remaining higher on a YOY basis for the 61^st consecutive week, finishing up 31.4%. Mar 2^nd week ending crude oil production increased to a new record high level while oil production per rig increased to a three week 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. Oil Rig Counts Followed Crude Oil Prices Lower but Have Begun to Rebound Since Mid-2016 Oil Rig Counts Peaked in Late 2014, Prior to Declining Sharply in Early 2015 Mar 2^nd Oil Rigs Finished up 0.1% Week-Over-Week and 31.4% YOY The Declines in Oil Rig Counts Since the Nov ’14 Peak Remain Significant Declines in Vertical Rigs Remain the Most Significant on a Percentage Basis Mar 2^nd Weekly Crude Oil Production Increased to a New Record High Level Mar 2^nd Crude Oil Production per Rig Increased to a Three Week High