A new analysis of BP’s oil output and financials shows that other major oil companies are also under strain from climate change and could see their profits decline by as much as 40 percent, as the company faces a massive hit to its bottom line.
According to a new report by the oil consulting firm IHS, BP’s share of global crude production dropped by more than half over the past decade, and its share of oil production has also fallen by almost half in the last five years, as oil prices plummeted.
The IHS report, published on Wednesday, found that BP’s global oil production fell by about 60 percent between 2005 and 2019, from about 10.5 million barrels per day (bpd) to less than 3 million bpd.
This fall in production meant that BP was unable to pay back the money it had borrowed for its oil investment.
The company’s total assets had also fallen, from $3.3 trillion in 2007 to $3 trillion at the end of 2019.BP’s share price has also plummeted by more that 70 percent since 2007, from a peak of around $102 per barrel in 2007.
Its share price is now around $32 per barrel, according to IHS.
The BP analysis comes as President Donald Trump’s administration seeks to ease oil production restrictions.
Under a new rule released on Tuesday, BP could now begin producing up to 4 million barrels a day, which would boost production by about 100,000 bpd and help stabilize prices.
In a statement, BP said it is “committed to the sustainable use of fossil fuels and climate policy,” and will continue to work with regulators to achieve that goal.
But the company has said that it will cut back on its oil production if its costs keep rising.