Overhang of DUCs in US to keep lid on prices

The number of uncompleted wells in US shale plays represents an overhang of potential production that will cap any rallies in the oil price
By Peter Stewart 6 September 2017
A rig drilling for shale gas in Pennsylvania Shale drilling in the Marcellus in Pennsylvania. (Helge Hansen/Statoil)

The latest edition of the Drilling Productivity Report (DPR) from the US Energy Information Administration (EIA) showed the number of drilled-but-uncompleted wells (DUCs) in the seven main shale basins in the United States hit record levels in July. Oil price rallies may be capped by the rise in DUCs in oil-directed shale plays, but the number of uncompleted wells in gas- and NGL-rich shale regions has declined.

A total of 7,422 wells were drilled in the seven main shale basins for the year to July...

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