Yes, the oil is on top of the water so you are pumping all the oil that is being produce so you don’t build a head of oil over the top of your pump.
You try to hit the sweet spot where you keep a small oil head over your pump so you don’t pump dry but not so much that you have to pump a lot of water to get to the oil head.
I didn't know if using the timer was an effective way to stay below out of that curve. Sounds like it is.
Sounds like there are several reasons to not have the pump running as someone drives by, while still keeping the well in operation.