BP (BP)

Prices and markets

Oil, gas and product prices are subject to international supply and demand. Political developments and the outcome of meetings of OPEC can particularly affect world supply and oil prices. Previous oil price increases have resulted in increased fiscal take, cost inflation and more onerous terms for access to resources. As a result, increased oil prices may not improve margin performance. In addition to the adverse effect on revenues, margins and profitability from any fall in oil and natural gas prices, a prolonged period of low prices or other indicators would lead to further reviews for impairment of the group's oil and natural gas properties. Such reviews would reflect management's view of long-term oil and natural gas prices and could result in a charge for impairment that could have a significant effect on the group's results of operations in the period in which it occurs. Rapid material and/or sustained change in oil, gas and product prices can impact the validity of the assumptions on which strategic decisions are based and, as a result, the ensuing actions derived from those decisions may no longer be appropriate. A prolonged period of low oil prices may impact our ability to maintain our long-term investment programme with a consequent effect on our growth rate and may impact shareholder returns, including dividends and share buybacks, or share price.
 

Periods of global recession could impact the demand for our products, the prices at which they can be sold and affect the viability of the markets in which we operate.
 

Refining profitability can be volatile, with both periodic oversupply and supply tightness in various regional markets. Sectors of the chemicals industry are also subject to fluctuations in supply and demand within the petrochemicals market, with a consequent effect on prices and profitability.
 

Oil, gas and product prices are subject
to international supply and demand. Political developments and the outcome of meetings of
OPEC can particularly affect world supply and oil prices. Previous oil price increases have
resulted in increased fiscal take, cost inflation and more onerous terms for access to
resources. As a result, increased oil prices may not improve margin performance. In
addition to the adverse effect on revenues, margins and profitability from any fall in oil
and natural gas prices, a prolonged period of low prices or other indicators would lead to
further reviews for impairment of the group's oil and natural gas properties. Such reviews
would reflect management's view of long-term oil and natural gas prices and could result in
a charge for impairment that could have a significant effect on the group's results of
operations in the period in which it occurs. Rapid material and/or sustained change in oil,
gas and product prices can impact the validity of the assumptions on which strategic
decisions are based and, as a result, the ensuing actions derived from those decisions may
no longer be appropriate. A prolonged period of low oil prices may impact our ability to
maintain our long-term investment programme with a consequent effect on our growth rate and
may impact shareholder returns, including dividends and share buybacks, or share
price.

 

Periods of global recession could impact
the demand for our products, the prices at which they can be sold and affect the viability
of the markets in which we operate.

 

Refining profitability can be volatile,
with both periodic oversupply and supply tightness in various regional markets. Sectors of
the chemicals industry are also subject to fluctuations in supply and demand within the
petrochemicals market, with a consequent effect on prices and profitability.