Jun 15, 2020 - Energy & Environment

BP writes down its assets by up to $17.5 billion as it weighs coronavirus' lasting impact

Ben Geman, author of Generate

Illustration: Aïda Amer/Axios

BP is writing down the value of its assets by up to $17.5 billion and is slashing its long-term oil price assumptions as it projects the coronavirus pandemic will have an "enduring impact on the global economy."

Why it matters: Monday's announcement signals how one of the world's most powerful energy companies sees COVID-19 changing the industry's landscape in lasting ways.

  • "BP's management ... has a growing expectation that the aftermath of the pandemic will accelerate the pace of 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 the future," the company said.
  • CEO Bernard Looney, in a statement, said the pandemic reinforces BP's long-term climate plan announced in February to shift its business toward low-carbon sources and become a "net zero" company over several decades.

The big picture: The oil-and-gas giant, in announcing the second-quarter charges and write-offs, sees the potential for weaker energy demand for a "sustained period."

  • BP is also reviewing whether to develop some of its discoveries, the company added when announcing that it cut its long-term oil price assumption by roughly 27%.
  • The company now sees Brent crude prices averaging $55-per-barrel in the 2021–2050 period, and lowered its long-term natural gas price forecast sharply too.

Go deeper

Axios
Updated 5 hours ago - Health

U.S. coronavirus updates

Data: The COVID Tracking Project; Note: Does not include probable deaths from New York City; Map: Andrew Witherspoon/Axios

Seven players and six staff members from the St. Louis Cardinals have tested positive for the coronavirus over the past week, prompting the MLB to postpone the team's upcoming four-game series against the Detroit Tigers.

The big picture: Former FDA commissioner Scott Gottlieb told CNBC’s "Squawk Box" that coronavirus outbreaks in the MLB are "a warning of what could potentially happen if we aren't very careful with the schools."

Go deeper (2 min. read)Arrow
Marisa Fernandez
Updated Jul 31, 2020 - Health

The states where face coverings are mandatory

Data: Compiled by Axios; Map: Danielle Alberti/Axios

Face masks will be required in Vermont's public areas starting Aug. 1 where social distancing is not possible, the state's health department announced.

The big picture: More than 30 states, in addition to the District of Columbia, have issued some form of mask mandate as new infections surge across the country.

Go deeper (1 min. read)Arrow
Bob Herman
Jul 15, 2020 - Health

Health care's "COVID quarter" is here

A COVID-19 unit at a Houston hospital. Photo: Mark Felix/AFP via Getty Images

Health care companies will start reporting second-quarter financials in earnest this week, showing how the coronavirus lockdowns and subsequent reopenings affected their businesses.

The big picture: Revenues almost certainly will be down for most companies, as the virus forced people to stay at home and led to fewer people getting surgeries and going to pharmacies. But that doesn't mean profits were eliminated, and Wall Street has already pumped health care stock prices back to where they were pre-pandemic.

Go deeper (<1 min. read)Arrow