Um NO. We took a LOT of wells out of production HERE in the USA when oil was so cheap in the 1990s. Those are now coming back on line. For example in Western ND and in Canada. We have LOTS of untapped supply because it has not been economically worth while to tap it as long as we could get $30 a gallon oil for Saudi, Mexico and Venezuela
You are right on target. It is unbelievable how much drilling has been started here in the Texas Panhandle! Shut-ins...even old dry holes are being tried again! (no cracks about the terminology from those who don't know about the oil and gas industry!)
Minerals are being leased right and left. As far as the $3 gallon gas, all I want to know is when will a new car again cost $5,000 and a new home cost $20,000? Meanwhile, complainers continue to pay $50-up a month for 500 channels on their TV (probably 3 or more TV's in the house!), everyone has to have his/her own cell phone, designer coffee costs ?? (...I've never bought the stuff), and fast food/restaurants are doing a booming business.
I should have been clearer: there is an unsettling report that Saudi production has peaked and can only decline from here. I would imagine lots of mideastern countries will face the same scenario at some point not many years from now.
I am not totally familiar with the wells you are referring to: why were they unprofitable before? does it take too long for the oil to seep around the rocks or is it that there is not much there to start with?