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Page added on October 27, 2015

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BP’s big plans need crude at $60

Business

BP has big plans to balance its cashflows by 2017, but it needs crude prices to hold $60 a barrel and St James’s Place has reported a terribly polite 17 per cent rise in net fund inflows. FT City editor Jonathan Guthrie rounds up the morning’s main news and puts it into context.

BP is battening down the hatches for oil to stay at $60 per barrel, publishing plans for “balanced cashflows by 2017” at that level. The oil major says this will “sustain” the dividend and produce growth in distributions over the long term.

The oil industry has been hopeful of a recovery in the price of the black stuff, which traded at over $110 per barrel until around this time last year. BP is preparing for low prices to persist. It will curb capex at around $17-$19bn a year through to 2017 and expects to make additional divestments of $3-$5bn in 2016.

What happens if Brent stays below $50 per barrel? Presumably BP would have to make another plan.

Replacement cost profits for the quarter were $1.2bn lower year-on-year for the third quarter at $1.8bn.

FT

 



6 Comments on "BP’s big plans need crude at $60"

  1. penury on Tue, 27th Oct 2015 10:07 am 

    Plans? who needs stupid plans, we have hopes and dreams.

  2. shortonoil on Tue, 27th Oct 2015 3:11 pm 

    By our calculations the maximum sustainable theoretical price by 2017 will be $54.

    http://www.thehillsgroup.org/depletion2_022.htm

    2018 – $41

    Central Bank policies over the next few years will set the bottom to those prices. What they will be is anybody’s best guess?

  3. Kenz300 on Wed, 28th Oct 2015 9:01 am 

    BP — Beyond Petroleum

    BP needs to go back to the plans it once had to move beyond petroleum and become an “ENERGY” company and not just an “OIL” company.

    It is time for all fossil fuel companies to embrace alternative energy sources.

    Fossil fuels are the past…… safer, cleaner and cheaper alternative energy sources like wind and solar are the future.

  4. Kenz300 on Wed, 28th Oct 2015 9:23 am 

    All Fossil fuel companies need to transition to “ENERGY” companies and embrace safer, cleaner and cheaper alternative energy.

    Wind Power Now Cheaper Than Natural Gas for Xcel, CEO Says – Renewable Energy World

    http://www.renewableenergyworld.com/articles/2015/10/wind-power-now-cheaper-than-natural-gas-for-xcel-ceo-says.html

  5. GregT on Wed, 28th Oct 2015 9:39 am 

    Kenz,

    “Wind Power Now Cheaper Than Natural Gas for Xcel, CEO Says”

    The title of the article is misleading. The first sentence from the article:

    “Xcel Energy Inc., the biggest U.S. provider of wind power, expects long-term contracts for the technology to beat the cost of natural gas.

  6. Kenz300 on Sat, 31st Oct 2015 6:56 pm 

    Climate Change is real….. we will all be impacted by it……

    Exxon’s Climate Change Cover-Up Is ‘Unparalleled Evil,’ Says Activist

    http://www.huffingtonpost.com/entry/exxon-evil-bill-mckibben_561e7362e4b028dd7ea5f45f?utm_hp_ref=green&ir=Green&section=green

    ———–

    Oil and Gas Companies Make Statement in Support of U.N. Climate Goals – The New York Times

    http://www.nytimes.com/2015/10/17/business/energy-environment/oil-companies-climate-change-un.html?&moduleDetail=section-news-2&action=click&contentCollection=International%20Business&region=Footer&module=MoreInSection&version=WhatsNext&contentID=WhatsNext&pgtype=article

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