Frackers Are Keeping Oil in Ground
Reporters at Bloomberg have discovered that the U.S. fracking industry has drilled 4,731 wells at which they have not yet turned on the spigot to get the oil flowing. That’s 322,000 barrels per day or almost as much as Libya produces in a year. “The number of wells waiting to be hydraulically fractured, known as the fracklog, has tripled in the past year as companies delay work in order to avoid pumping more oil while prices are low,” says Bloomberg. “It’s kept crude off the market with storage tanks the fullest since 1930. The fracklog may slow a recovery as firms quickly finish wells at the first sign of higher prices.” It sound like this glut is going to be around for a long time to come.