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Page added on June 17, 2020

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BP Anticipates the Fall of Oil with a 17.5 Billion Dollar Loss


BP is one of the largest oil companies in the world, and even they are seeing the renewable energy boom as an inevitability. As a result of the current market conditions, the company will be devaluing its assets by 17.5 billion dollars.

In their statement, BP had this to say, “growing expectation that the aftermath of the pandemic will accelerate the pace of the transition to a lower-carbon economy and energy system as countries seek to build back better so that their economies will be more resilient in future”.

Essentially, the company sees governments using the transition to clean renewable energy as a tool for economic recovery.

The Company Is Trying to Evolve

BP is aware that the fall of oil is inevitable and has already stated that they will be aiming for net-zero emissions by 2050. But, that plan may not be quick enough. Luckily, BP already has experience when it comes to renewable energy sources.

In the solar sector, Lightsource BP was the first company to provide solar energy at night in the UK. It has also expanded to other countries and creates solar farms. It also has a good start in wind energy. In the United States, it operates in 9 states and generates 926MW of energy.

However, the company has a lot of headway to make to even meet the 2050 goal, let alone do it at an accelerated rate.

We May Have Witnessed Peak Oil

Peak Oil

It is very unlikely that oil usage will ever go back to the way it was just a year ago. The COVID-19 pandemic has lowered the amount of energy we are using every day. Sustainable and renewable energy sources are taking over.

Not only are the sources healthier, but they are also cheaper.

It is very likely that many countries will use renewable energy to jumpstart their economies and create jobs, and that will be the beginning of the end for big oil.

green geeks

4 Comments on "BP Anticipates the Fall of Oil with a 17.5 Billion Dollar Loss"

  1. asg70 on Wed, 17th Jun 2020 9:53 pm 

    “It is very unlikely that oil usage will ever go back to the way it was just a year ago.”

    The peak oil–DEMAND

  2. makati1 on Wed, 17th Jun 2020 10:37 pm 

    If you go back and check, I always said the petro age will end and there will still be many billions of barrels left in the ground as it will not be profitable to recover.

    Consumption will never go back to even close to 2019 levels. A lot of oily suicides, both corporate and personal in the future. Gp for it leeches!

  3. Cloggie on Thu, 18th Jun 2020 3:28 am 

    “BP Anticipates the Fall of Oil with a 17.5 Billion Dollar Loss”

    No worries, open your wallet and order a shining offshore wind park in Europe now, complete with hydrogen production facilities and avoid the rush.

  4. Famlin on Fri, 19th Jun 2020 4:06 pm 

    Per bp energy stats
    Oil consumption increased 0.9% while production decreased 0.1%.
    Why the difference? Consumption includes coal & natgas converted to gasoline/petrol while production excludes which means the actual oil usage follows production and is lesser.

    If the oil prices does not increase, oil production & consumption will fall drastically while other fuels could still manage some increase. Oil is the most expensive fuel and that will be the first to fall.

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