Total expects Brent to average $35 this year. That’s close to where international benchmark Brent was trading before the pandemic struck, but is now considered unrealistic in the post-Covid economy. Most major European oil companies had valued their assets using long-term crude prices of $60 to $80 a barrel.
The size of the impairments shows how the global health crisis, combined with the push to slow climate change, is shaking the industry’s foundations. The French energy giant is following its peers BP Plc and Royal Dutch Shell Plc, which already warned that they could write down almost $40 billion between them in the second quarter. Total will not approve any capacity increase on projects of this type and will withdraw from Canada’s oil industry lobby group. The bulk of the impairment - about $7 billion - applies to Canadian oil sands, which are costlier and more carbon intensive than conventional fields. Total SE announced an $8.1 billion writedown after the push to curb carbon emissions and the coronavirus pandemic challenged assumptions about the long-term viability of some oil and gas assets. Copy link A decentered black square over a white square. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Facebook Messenger An icon of the Twitter app logo. Facebook Messenger An icon of the facebook messenger app logo. Loading Spinner An icon of a loading spinner. Success Tick Timeout An icon of a greyed out success tick. Information An icon of an information logo. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Video Camera An icon of a video camera shape. Previous An icon of an arrow pointing to the left. Notice An explanation mark centred inside a circle. Next An icon of an arrow pointing to the right.
Hamburger Menu Icon An icon used to represent a collapsed menu. Search Icon A magnifying glass icon that is used to represent the function of searching. Magnifying Glass An icon of a magnifying glass. Comments An icon of a speech bubble, denoting user comments.
Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Breaking An icon of an exclamation mark on a circular background.
0 kommentar(er)
