More barrels of oil are expected to come out of BP during the second half of the year even as results continue to show a loss, CEO Bob Dudley said. File photo by A.J. Sisco/UPI | License Photo
LONDON, July 26 (UPI) -- Even though results for the second quarter show yet another loss, BP CEO Bob Dudley said thousands of barrels of new production is coming online this year.
BP said Tuesday it recorded a net $2.3 billion loss in the second quarter for its third straight quarterly slump. The results came less than two weeks after the British energy giant revealed the total cost associated with the 2010 oil spill in the Gulf of Mexico was around $62 billion. After revealing the total cost for the first time since the incident, Dudley said he was "very pleased" to have been able turn the page on one of the worst accidents to ever strike the industry.
BP said it was making good progress on resetting its capital programs, with cash costs over the last year down about $5.6 billion compared with 2014. Costs for 2017 are expected to be $7 billion lower than two years ago and capital spending for full-year 2016 is expected to come in below $17 billion, after spending about $7.9 billion during the first half of the year.
Dudley said a disciplined approach during an era of lower oil prices meant the company could now plan on more opportunities in the coming quarters.
"As we look forward we expect the external environment to remain challenging, but we have a strong pipeline of new projects which will add 500,000 barrels of oil equivalent a day of new production capacity by the end of next year," he said.
BP is one of the first companies out of the gate with second quarter results. Tom Ellacott, a corporate research expert at consultant group Wood Mackenzie, said oil and gas companies are starting to adapt to life below $50 per barrel.
"Some [companies] have seized the moment with counter-cyclical moves that have repositioned portfolios lower down the cost curve," he said in an emailed report. "But it is too early to call the start of the next investment cycle, despite some recent high profile project sanctions."