[thackney]

There is a field of oil wells near my office. When the price per barrel goes down below $100 per barrel, most of them are idle

Where are you located?

Or good business practice?

Horrible business to anyone that understand cash flow. If you shut down for two month, your payments are not delayed 2 month, they are delayed until the end of your production time, many years from now.

[IMR 4350]

Depends on the wells and what they are producing.

If you have to produce a lot of salt water to get the oil your electric cost plus the salt water disposal cost, even with your own disposal well, can take a bite out of your ass quick.

Most of those wells aren’t shut in they are just put on timers so you can keep the lease without having to pay shut in cost to the mineral owner.