This week, BP, one of the so-called super oil majors, said it was writing down or reducing the value of its assets by between US$13 billion (£10.35bn) and US$17.5bn (£14bn). BP’s shares fell by 5.4% after the news was announced, making it one of the biggest fallers on the FTSE 100 share index. For several years climate scientists and others have been saying that fossil fuels must be left untapped in order to tackle the dangers posed by climate change: such resources, described as “stranded assets”, should not be included in the fossil fuel companies’ balance sheets. In an announcement sending shock waves through the oil industry and rattling global stock markets, BP said that it was not only downgrading its own value but, as part of a review of the company’s activities, it was also rethinking future exploration plans, hinting at leaving some of its worldwide fossil fuel investments in the ground. BP says the main reason for its action is the Covid pandemic – energy demand is slack and oil prices will likely remain at their present relatively low level for years to come. But the company also acknowledges its revaluation is a reflection of moves towards a low carbon future.
Climate News Network 16th June 2020 read more »
Special Report: Millions of abandoned oil wells are leaking methane, a climate menace.
Reuters 16th June 2020 read more »
The world’s oil demand could climb at its fastest rate in the history of the market next year, and may reach pre-crisis levels within years, unless new green policies are adopted, according to the International Energy Agency (IEA). The global energy watchdog has forecast that the world’s daily oil demand may climb by 5.7m barrels next year, the fastest annual climb on record, to an average of 97m barrels of oil a day in 2021. The demand forecasts for next year fall short of levels recorded in 2019 because the record rebound will only partially offset the severe oil demand collapse triggered by the coronavirus pandemic, which is expected to erase an average of 8.1m barrels of oil a day from global demand during 2020.
Guardian 16th June 2020 read more »