Lahiri, who carded five-under 66 on first day and then 74 on second, has often given himself chances but not been able to convert as many as he should have.
At two-under 211, Lahiri is tied 39th, down two places from his overnight tied 37th and way below his first round position of tied fourth.
Lahiri missed a bunch of putts, about four or so between 10 and 15 feet, but what was even more painful was a six footer birdie putt that went past and a par putt on ninth, that he missed from inside four feet.
Even while not being able to find many fairways off the tee, he has done well with the irons to get to the green or close to it. But then the putter has not done its job after the first day. Lahiri playing his first full season on the PGA Tour, was tied 28th at Career Builder Challenge and missed the cut at Farmers Insurance.
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Lee shot four-under 67 to move three strokes ahead of Rickie Fowler and Hideki Matsuyama. The 25-year-old, Lee, who won the Greenbrier Classic last year for his first PGA TOUR title, had six birdies and two bogeys to reach 13-under 200.
Fowler, who won two weeks ago in Abu Dhabi for his fourth worldwide victory in nine months, parred the final five holes for a 70. Matsuyama had a 68.
Second-round leader James Hahn had a 74 to fall into a tie for seventh at 7 under. Tied with Lee for the lead at 12 under after the 11th hole, he dropped five strokes on the next three holes.
Bubba Watson had his first over-par round ever at TPC Scottsdale, shooting a 73 to drop to 2 under. He shot par or better in his first 36 rounds in the tournament.
The Open, world's oldest championship, will herald a busy run which includes the final Major of the year in the US before golf's return into the Olympic Games after a 112-year lapse which Lahiri is excited about the opportunity to represent India.
"Managing energy levels and conditioning are a big challenge this season. I will look to skip a few events leading up to the big ones if I feel like I need to take a break," said Lahiri.
"My coach will be here in America for two weeks to work on all aspects of the game and sharpen it up for the Majors and the Olympics. Hopefully I can pace myself just right to peak during the Majors and Olympics. That's the goal."
"There can be no greater joy than hearing your name as "the Champion Golfer of the Year!" said the Indian.