LAST EDITED ON Jan-07-15 AT 11:13PM (MST)[p]You can rotate your wells, shutting a certain amount in for a few days, then produce them for a few days, so forth and so on. Common practice if weather or midstream issues arise. You just need to make sure you get them back on before you log off. It also depends on what type of artificial lift you have, water flood, gas flood, pumping etc. Producers also have stipulations on having to produce well a certain amount of days within a given time period, this is usually dependant on the Agency your dealing with, BLM, Tribal, etc.
North American "tight" oil has been basically the only incline on production curves in a while, while most conventional oil has been on the decline. We have been frac'ing since the 40's, it is nothing new. What is new, having the ability to have successful, multiple stage frac's in horizontal well bores. Some of these horizontals will have 15-18 stage frac's, which of course drives your new well or re-drill price tag up dramatically.
On the oil price fallout, several things... In mid November 2014 Iran contracts Russia to build them nuclear reactors. Then the Oil heads meet on Thanksgiving, to work a deal trying to curb the 2mbpd glut. Russia and Venezula were supposed to cut 500k pout, Putin said no way, while OPEC ( mainly Aramoco) was supposed to shoulder the rest,.......Naimi said they don't want to loose its market share and since they have 750 billion in foreign currency reserves, they can ride this for up to 2 years.
So you wonder if the Saudi's refusal to prop up oil is,
A). Slow down the American tight oil boom.
B). Force the Iranians/ Russian Nuke deal to fall through.
With the past relationship between American oil and Naimi, you would certainly think that there is more to his refusal than to just make a statement to American oil company's. Who knows maybe his driver is just that, to slow American tight oil down.
Aramoco is putting all of their 10mbpd production to market, they are maxed. If the 2mil glut goes away through American cuts and attrition, and production is short, American Oil will come roaring back......downside for the Saudis is they are all in, they have no more uplift in production.
The kicker is most production company's are drilling to offset the steep production decline associated with a tight well. As more and more rigs lay down, that just means the offset is further behind....if the 2mil glut winds up being a 2 or 3 Mbpd short, here comes $100 a barrel.....or more.