U.S. Shale Production Hindered By Sand Supply Crunch

U.S. shale producers are tempted to boost production more than previously expected as oil prices rallied to over $90 a barrel with a potential to hit $100 soon. Yet, a supply chain bottleneck for a key material for fracking could slow the coming shale boom.  Frac sand in the biggest shale play, the Permian, is in short supply, threatening to slow drilling programs at some producers and sending sand prices skyrocketing.

This adds further cost pressure to American oil producers, who are already grappling with cost inflation in equipment and…