New analysis says DUCs can’t sustain US shale output

With capital to drill new wells in short supply and the COVID-19 pandemic sending oil demand crashing, oil and gas companies have turned to their inventory of drilled, uncompleted wells to keep supplies flowing.

But a new study by ESAI Energy said that the nation’s inventory of drilled, uncompleted wells could last only until mid-2021, accelerating production declines without a sharp rise in drilling activity.