From a financial standpoint, this is poor advice. Reserves and equipment represent real options, giving big-oil the right,but not the obligation, to extract in

From a financial standpoint, this is poor advice. Reserves and equipment represent real options, giving big-oil the right,but not the obligation, to extract in the future. Even if these costs cannot be recouped at the current market price, this has value because of oil's volatility (just like stock options with exercise prices above current prices). The fall in oil price (and expected future prices) reduces the quantity of profitable real options, but plausibly not to zero.