Shell plans to cut the value of its oil and gas assets by US$15-22bn in a context of enduring impact of the COVID-19 pandemic on the global economy and energy demand and of likely transition to a lower-carbon energy system. The aggregate post-tax impairment charges will relate to integrated gas and LNG assets (US$8-9bn, including the Queensland Curtis and Prelude LNG plants in Australia), upstream resources in Brazil and in North America shale basins (US$4-6bn) and refineries (US$3-7bn). Shell expects Brent crude oil price to average US$35/bbl in 2020 (ramp up to US$60/bbl in 2023 and afterward), Henry Hub gas price US$1.75/MBtu in 2020 (rising to US$2.75/MBtu in 2023 and US$3/MBtu afterwards) and average long-term refining margins to be around 30% lower than previous mid-cycle downstream assumptions.
Earlier in June 2020, BP announced US$13-17.5bn charges and write-offs in 2020. The group lowered its long-term (2021-2050) price assumptions to an average of around US$55/bbl for Brent and US$2.90/MBtu for Henry Hub gas (US$2020 real) and revised its carbon price forecast for the period to 2050 (average of US$100/tCO2eq in 2030).