Shut-in (oil drilling)
From Wikipedia, the free encyclopedia
In the petroleum industry, shutting-in is the implementation of a production cap set lower than the available output of a specific site.[1] This may be part of an attempt to constrict the oil supply[2] or a necessary precaution when crews are evacuated ahead of a natural disaster.[3]
In April 2020, as a result of oil futures trading negative, Oklahoma and New Mexico voted to allow wells to shut-in in order to reduce production to combat oversupply.[4]
