BP expects to impair $13bn-$17.5bn in its Q2 results on 4 August as it slashes its long-term oil and gas price assumptions. The London-based major will now test future investments, and write-off past ones, against long-term (2021-2050) average price assumptions of $55/B for Brent crude, and $2.90/mn BTU for the US Henry Hub gas marker (both in real 2020 terms).

Previous assumptions for 2020-40 published in the firm’s 2019 report were $70/B Brent and $4.0/mn BTU Henry Hub, both in 2015 terms. BP says the new assumptions equate to real-terms cuts of 27% for oil and 31% for gas for 2020-50 versus these previously-published figures. (CONTINUED - 1410 WORDS)