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

Oil's coronavirus recovery is stuck in neutral

Data: FactSet; Chart: Axios Visuals

Crude oil is languishing in the "friend zone," and that's not enough for substantial swaths of the ailing sector.

The state of play: U.S. prices have hung out in the roughly $40-per-barrel range (and sometimes lower) for the last month after sharply recovering from the depths of April's price and demand collapse.

Trump's outdoor New Hampshire rally postponed due to weather

Photo: Win McNamee/Getty Images

President Trump's outdoor campaign rally in Portsmouth, N.H., slated to take place on Saturday, was postponed on Friday due to weather from Tropical Storm Fay, a senior White House official confirmed to Axios.

The state of play: Press Secretary Kayleigh McEnany told reporters on Air Force One that the event would take place in "a week or two" instead. The outdoor rally — which had encouraged the use of face masks — was scheduled after sparse attendance at Trump's indoor comeback to the campaign trail in Tulsa.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 11 a.m. ET: 12,294,117 — Total deaths: 555,531 — Total recoveries — 6,761,933Map.
  2. U.S.: Total confirmed cases as of 11 a.m. ET: 3,118,168 — Total deaths: 133,291 — Total recoveries: 969,111 — Total tested: 38,032,966Map.
  3. Public health: The U.S.' new default strategy: herd immunity.
  4. Business: The pandemic is driving a second jobs apocalypse.
  5. ✈️ Travel: Airlines say air quality, cleanliness lower risk.
  6. Sports: Sen. Richard Blumenthal calls on colleges to cancel fall sports.