A system and method for systematically and economically recovering formation liquids from the bottom of a petroleum well are disclosed. In a preferred embodiment, the system and method are passive in that they utilize the existing formation pressure of the well to remove fluid build-up across the perforations of the well bore in a manner that is completely free from surface control. The system is comprised of strategically placed carrier subs with installed pressure regulating devices. These carrier subs are regularly spaced below the production packer, along the tail pipe section of the production tubing string and facing the perforated intervals of the well bore. The pressure of the trapped formation gas above the accumulating formation liquid is insufficient to remove all of the formation liquid within the entire length of the tubing string 13. However, an open pressure regulating device mounted on the tailpipe section of the tubing string allows a smaller portion of the formation liquid within the tubing string to be produced to the surface using the existing formation pressure. By systematically removing portions of the formation liquid from within the tubing string using the regularly spaced pressure regulating valves, the formation fluid build-up across the perforations is eliminated, and the petroleum well is able to produce at higher rates and for a longer period without intervention.