The New York Times discusses why BP is preparing for a future that needs less oil. The energy giant said its oil and gas assets were worth less, a move reflecting broad changes in the industry.
BP sent a signal to investors on Monday that the economic shock of the pandemic would reverberate for years, and that less gas and oil would probably be needed in the future.
The London-based oil giant told shareholders the company expected to write down as much as $17.5 billion of its oil and gas holdings in its next quarterly report.
The write-downs are an acknowledgment that the oil and gas fields on BP’s books are not worth as much as they used to be, and will probably stay that way for the foreseeable future. The move reflects broad changes in the energy industry as companies adjust to a new environment.