BP flags major writedowns as pandemic hits price, demand outlooks

摘要

BP plans to write off up to $17.5 billion worth of assets after cutting its long-term price assumptions for oil and gas to reflect expectations the coronavirus pandemic will accelerate the shift away from fossil fuels. Flagging “growing expectations” that the pandemic would have a lasting impact on global demand for oil and gas, BP said it had lowered its Brent oil and Henry Hub gas price assumption for 2020-50 by 27% and 31%, respectively. BP’s new price assumptions for investment planning are now $55/b for Brent and $2.90/MMBtu for Henry Hub gas on a 2020 real basis, down from a previous outlook of $70/b and $4.30/MMBtu on a 2015 real basis. The company also revised its carbon price assumption to $100/mt CO2 equivalent in 2030.