Why Shale Producers Still 'Pump and Pray'

The current oil glut is a precursor of production declines in the U.S. shale industry.

Keeping Bakken oil flowing.

Photographer: Andrew Burton/Getty Images

As the price of oil continues to fall, the U.S. shale oil industry is showing remarkable resilience. Output is at a 30-year high and stockpiles are the largest since tracking started in 2004. Speculators who push down the price of crude see this as evidence of a glut, but it could actually signal desperation on the part of over-leveraged producers.

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