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They will stop pumping when the price to extract gets too low. To stop pumping does not reduce the amount of oil you will get out of a reservoir to any signific
by njarboe 7y ago
They will stop pumping when the price to extract gets too low. To stop pumping does not reduce the amount of oil you will get out of a reservoir to any significant degree and you can start up again with little cost.
The big issue is that if lots of oil companies go bankrupt (many US fracking ones are highly leveraged and must sell oil at a certain price in order to survive) and people get other types of jobs, you can't ramp up the creation of new wells very easily. Oil from fracking takes a lot more effort and wells than the old style wells.