They've been doing this for generations. Where have you been?
“When the oil price drops below the cost of pumping it out of the ground and supporting all the infrastructure to get it from the well head to the refinery the oil company will shut off the valves and turn off the pumps until such a time as they can, oh I dunno, actually make money from that well.”
Been in in and out of working in the oil business (not on the business end). It’s a little more complicated than shutting off a valve and turning off pumps. The working wells will keep working, no new drilling or exploration is what actually occurs. Working wells are plugged when shut down, an unescessary and expensive op