Shale’s Record Fracklog Could Force Crude Prices Lower

There are now nearly 5,500 drilled-but-uncompleted wells in the U.S.

If OPEC thought shale was a thorn in its side before, just wait until U.S. explorers turn their spigots on full blast. There were 5,496 drilled-but-uncompleted wells in the nation’s oil fields at the end of May, the biggest so-called fracklog in at least three years, according to estimates by the U.S. Energy Information Administration. Wells waiting to be fracked and flowing are an overhang that could mean a burst of new supply in the second half of the year and into 2018, according to Luke Lemoine, an analyst at Capital One Securities Inc. in New Orleans.

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