Re-Fracking Will Further Exasperate Oil Supply Glut

Re-fracking is the process re-entering and re-fracturing existing horizontal wells from the 1960s and 70s, rather than drilling new wells which makes the process much more cost effective. Dan Dicker, Senior Energy Analyst at TheStreet, tells Jill Malandrino., as crude levels move higher, producers move to get wells back online. That combined with re-fracking will add more pressure to crude as supply outpaces demand. Dicker says the industry needs to see more consolidation to shake out marginal players, recapitalization and even bankruptcies. Lower oil prices would actually help move this scenario along.

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