He'll help you draw, he'll help you erase; waste not want not...he's Pencil Face. Go to http://www.dandydwarves.com for more.
What a quick, weird little short. The music does a lot here. It wouldn't be nearly as unsettling with happy kids' show music instead.
Couldn't find much on the creators, the Dandy Dwarves, other than their YouTube channel. Their website seems to be defunct. Spooooky