Oil and gas industries are in heavy trouble. Taking into account the economic impact of the downgraded performance of these branches of economies we can expect major consequences in form of unemployment rates rising, global oil/USD cycle disruption and a lot of other long-term processes. British Petroleum confirms these expectations and prepares to write off a hefty sum in operating losses.
British oil and gas giant BP is going to write off billions. The group has to adapt to the changing market conditions in the oil sector as a result of the corona crisis. In total, this concerns charges and one-off depreciations between $ 13 billion and $ 17.5 billion.
Due to the crisis, BP is changing its goals for longer-term oil prices. In addition, it calculates with a price for a barrel of Brent oil of approximately $ 55 a barrel. The company says that the global economy will come under longer-term pressure due to the crisis, which will also have an impact on oil demand. Last week, it was announced that BP plans to cut 10,000 jobs, about 15 percent of the workforce.