Then it is not being produces. When an oil company shuts down production on a oil lease, they lose the lease. Often they can pay penalties to keep the lease without production.
But cash flow is king. Most cannot afford to spend $6~10 million on a well and not flow the oil and receive some payment.
Looks like giving domestic US oil producers access to world markets would add to the glut of oil already on the world market, especially since Iranian oil will now be openly traded as well, further depressing the price and tending to drive the frackers out of the market...................