Originally Posted by
Powerdrive
This will be an ongoing issue for quite sometime. Aside from the market being flooded with crude and there being fuck all for demand, there is something else folks need to realize. You can’t walk up to a producing well and just shut it off. If it’s a rod pump well with a pump jack, yes. But there is far more involved depending on the type of well that’s producing. It could take six months just to slow production from wells, because stopping production will damage the well...Permanently. Operators are not going to shut wells down that they know will ruin the ROI in the long term for them. Also, we were already running into an infrastructure issue in the Permian basin with regards to transporting of oil. Not enough pipelines or trucks to haul the oil away fast enough.
This is just a crash course as it is far more complicated for a myriad of reasons, just throwing some of knowledge out there.