What does Shut In (oil drilling) mean?
In the energy industry, this is when well production is significantly reduced or suspended altogether. The oil or gas well still has capacity, but it is not being produced/extracted.
Futures Knowledge Explains Shut In (oil drilling)
Oil producers sometimes shut in wells for safety reasons, but by far the most common reason for 'shutting-in' a well is because the cost of extracting the oil or gas is higher than the current market price for the commodity. In other words the well is no-longer economic.