I mean even though they have more than ample supply, is it common practice for a company to keep selling a certain amount of oil each month? Or do they typically sell as much as possible? Thanks.
Do oil companies usually sell the same amount of oil each month?
Daniel, I have seen operators slow down when the price dips if they have a well that has high production because 2 months from now that same oil may bring hundreds of thousands of dollars more and the supply is finite. At the moment I think the operator would find the prices acceptable and would produce as much as they could limited only in consideration of keeping the well healthy. They don't want to "run the guts out of it".