BP is a multinational oil and gas company headquartered in London, England. It is one of the world's seven oil and gas supermajors.

BP, one of the world’s seven oil and gas supermajors, says it expects to undertake a huge reduction in asset value in the range of $13 billion to $17.5 billion as it revises long-term energy price assumptions.

What Happened?

The company told shareholders that it could write down the value of its assets and warned that the pandemic would have a lasting impact on the global oil economy.

The energy giant expects global benchmark Brent crude to average a price of around $55 per barrel from 2021 through to 2050. That’s a reduction of 27% from its previous expectation.

The company recently cut 10,000 jobs in an effort to cope with the global collapse in demand for oil.

What Comes Next?

BP says new long-term price assumptions will impact some of the group’s exploration plans.

The company pledged to become a net-zero company by 2050, but the pandemic has forced them to reconsider their assumptions once more.

“We are also reviewing our development plans,” Looney said. “All that will result in a significant change in our upcoming results, but I am confident that these difficult decisions – rooted in our net-zero ambition and reaffirmed by the pandemic – will better enable us to compete through the energy transition.”

Derick Lila
Derick is a Clark University graduate—and Fulbright alumni with a Master's Degree in Environmental Science, and Policy. He has over a decade of solar industry research, marketing, and content strategy experience.

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