Energy & Science
Big Oil Writedowns Hit a Record $70 Billion as Virus Forces Cuts
- Huge Exxon writedown rounds out record year for impairments
- Peaking oil demand is a serious threat to the industry: BNEF
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Exxon Mobil Corp.’s impending writedown of natural gas fields rounds out a record year for Big Oil chargeoffs stemming from misplaced optimism on the future of fossil fuels.
The five Western supermajors have now identified more than $70 billion of asset impairments this year, by far the most in at least a decade. The pandemic-induced crash in energy markets has forced companies to lower price forecasts and scale back drilling plans, severely reducing the value of their oil and gas resources.