On Wednesday, Total announced a $ 8 billion reduction in the value of its assets, mainly related to the Canadian oil sands. The French oil giant will report its quarterly results on Aug. 4.
Behind the large write-off of the company was a downward revision of projected long-term oil prices. The company expects Brent to average $ 56.80 a barrel between 2020 and 2050, which appears to be an admission that prices are likely not likely to rise in the future, or at least not. will grow for a long time. Total expects this to be similar to the latest cycle: “Total continues to analyze that weak investment in the hydrocarbon sector since 2015, exacerbated by the 2020 health and economic crisis, will lead to undercapacity and a rebound in prices by 2025.” the company said in a statement. But after 2030, oil demand will peak and reach $ 50 over the long term, the company said.
The company conducted a “dormant” risk analysis that would relate to reserves over 20 years old and with high production costs. The oil sands of Canada are the most likely victim of this analysis; of a total write-off of $ 8 billion, $ 7 billion was concentrated in the oil sands of Canada. Total's Fort Hills and Surmont account has a major write-off target.
The French company said it would no longer invest in Canadian oil sands and would even leave the Canadian Petroleum Producers Association (CAPP), an industry trading group, due to “ inconsistencies between their public positions “and Total.
Total will aim for carbon neutrality by 2050.
Recall, however, that Total received $ 15.8 billion to fund its a major liquefied natural gas (LNG) project in northern Mozambique.
The Mozambique LNG project is one of several under development in the far north of the country, following one of the largest gas discoveries off the coast in a decade.
The oil market is falling lower and lower
The oil market does not stop falling. According to the data at 10:55 Moscow time, March Brent futures fell 0.15%…
Why the oil industry of the Russian Federation began to be active in Africa
When the first Russia-Africa Summit took place in October 2019, most industry observers believed that many of the projects under…