It would have before fracking became common in the US. Now, production can be turned on or off relatively quickly in the US--just start/stop fracking in existing wells. Since it requires no capital investment (only operational expenses), very little lead time is needed. Production from fracked wells drops off very quickly once fracking ends, so overproduction tends to self-correct very quickly, also.
In the days before fracking, there would be a ~10 year delay between additional investment and additional production output. With fracking, it's more like weeks, not years, before production adjusts. That's why the oil price seems to have a price ceiling these days--any time prices go up, producers increase fracking and production. Overproduction is slightly different--fracked wells continue producing for about 12-18 months after fracking stops, so overproduction still occurs. But underproduction will be compensated for very quickly.
In the days before fracking, there would be a ~10 year delay between additional investment and additional production output. With fracking, it's more like weeks, not years, before production adjusts. That's why the oil price seems to have a price ceiling these days--any time prices go up, producers increase fracking and production. Overproduction is slightly different--fracked wells continue producing for about 12-18 months after fracking stops, so overproduction still occurs. But underproduction will be compensated for very quickly.