• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 14 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 13 hours What-If - Russia decided to take out the Saudi and Kuwait oilfields
  • 18 hours "As the Earth Cools, the Climate Change Hoax Heats Up" by Michelle Edwards
  • 18 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 3 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
  • 15 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 15 hours The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 21 hours PROFOUND ! "Russian Ruble relaunched linked to Gold and Commodities" by the famous Ronan Manly -- (NOTE the censorship by the MultiPolar New World Order of The Great Reset))
Clean Energy Stocks Are Shining

Clean Energy Stocks Are Shining

The recently approved climate bill…

Heatwave Sends European Gas Prices Higher

Heatwave Sends European Gas Prices Higher

European benchmark gas prices rose…

Oil Prices Fall As Demand Concerns Persist

Oil Prices Fall As Demand Concerns Persist

Crude prices fell on Friday…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Major BP Looks To Break Even At $35 Per Barrel

BP will seek to slash its breakeven oil price from $56 a barrel in 2019 to $35 a barrel by 2021, chief executive Bernard Looney told Reuters.

The supermajor has announced cost cuts of 25 percent for 2020, with the option of a further reduction by $1 to 2 billion from the after-cut budget of $12 billion.

BP reported a sharp drop in first-quarter underlying profits to $800 million from $2.4 billion a year earlier. The net result—expressed as replacement cost profit—stood at a negative $600 million versus a positive $2.1 billion for the first quarter of 2019.

The result was not a total surprise. The whole oil industry is battling a slump in demand and excessive production. However, unlike other players, BP has stuck to its dividend.

This decision was surprising, the chief market analyst of online trading firm IG told Oilprice. BP, Chris Beauchamp said, was “likely judging that the hit to its cash pile is outweighed by the headline risks to confidence that could follow should one of the UK’s big dividend firms have to cut back its payout.”

At the same time, BP’s management is aware that the crisis will not be short-lived. “We’re in this for quite some time,” Looney told Reuters, adding that BP expected demand for crude to fall by about 15 million barrels daily in the current quarter, which would be equal to a 15-percent piece of 2019 consumption.

The company also reported a sharp $6-billion increase in its net debt, to as much as $51.4 billion. However, according to IG’s Beauchamp, investors are relatively upbeat.

“Big name oil firms have managed to decouple their share prices from the ongoing carnage, another sign of investors heroically looking to the future, but unless demand rebounds quickly, and in a big way, the problems are not going to disappear,” he said.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News