BP Writes Off Billions as Covid Redraws Rules of Oil Demand
- Oil major lowers its long-term energy price assumptions
- Review of projects may result in some oil being left in ground
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BP Plc will make the biggest writedown on the value of its business since the Deepwater Horizon disaster a decade ago, as the coronavirus pandemic hurts long-term oil demand and accelerates the shift to cleaner energy.
In a dramatic revision that prompted questions about the affordability of its dividend, the British giant cut its estimates for oil and gas prices in the coming decades between 20% and 30%. It also expects the cost of carbon emissions to be more than twice as high as before.