Yes, that's basically correct, but think less econ and more accounting. Keep in mind: 1) That the $20/bbl cost is likely with capex amortized on the assumptio

Yes, that's basically correct, but think less econ and more accounting. Keep in mind: 1) That the $20/bbl cost is likely with capex amortized on the assumption that the well isn't shut-in. You'd either have to add a one-time write-off for the capex balance (if you can afford to), or at least re-amortize. Either way, looking at the existing/assumed $/bbl cost vs market price isn't correct for most decision making purposes. 2) The act of shutting-in (and re-starting production) have direct costs to be accounted for. It's not as simple as pushing a button that activates a remote controlled valve. There's (almost) always physical work to be done, plus compliance / permitting work associated with any changes. More-so for restarts, if you assume the shut-in will be temporary, and want to account for that cost in decision making. 3) opex costs are largely still discrete to some extent (ie, not literally a cost in $/bbl, except pipeline transport and royalties), and can still be sunk costs. Shutting-in wells doesn't necessarily reduce opex to $0, whether immediately or longer term. Yearly maintenance might have been done last week. Tanker service already contracted for the year, or a direct pipeline already built. Lease and permit fees paid for the next X years. The lease might be contracted at some fixed cost plus royalties, for 10+ years, with the fixed cost guaranteed. New for 2020: If the company took a PPP loan (or otherwise is trying to avoid layoffs) they have to keep surplus personnel, which then becomes a sunk cost. Now if you look at exploration instead of production, it's much more likely to be a textbook case of if (cost > price), then (stop work immediately).