Some US shale producers starting to re-activate wells

Reversal in strategy reinforces concerns about growing global glut, threatens to dampen rebound in prices

New York

A DREADED scenario for US oil bulls might just be becoming a reality.

Some US shale oil producers, including Oasis Petroleum and Pioneer Natural Resources Co, are activating drilled but uncompleted wells (DUCs) in a reversal in strategy that threatens to bring more crude to a saturated market and dampen any sustained rebound in prices.

When oil prices started their long slide in mid-2014, many producers kept drilling wells but halted expensive fracking work that brings them online, waiting for prices to bounce back. But now, with crude futures hovering near multi-year lows and many doubting recent modest gains that brought oil prices near US$40 a barrel can hold, the backlog of DUCs is...

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