Will BP be able to regain its former glory or fall is inevitableToday we will look at the chart of the price movement stocks of British Petroleum , BP, British Petroleum Corp. - a corporation that for many years has been among the leaders of the oil and gas, petrochemical and coal industries on all continents.
They had an interesting history of BP stock pricing in accordance with the events in the world at that time. Therefore, we will share our observations.
1) When the world was affected by the "First Oil Crisis" in 1973, the share price dropped threefold from $3.50 to $1.13 , where the historical minimum was set.
2) However, already during the "Second Energy Crisis" — the Islamic Revolution in Iran in 1979-1980, the value of BP shares increased threefold from $4 to $12. Then the corporation was actively exploring new deposits on different continents of the world, which allowed it to diversify such risks as the revolution in Iran or the nationalization of their assets in Nigeria in 1979.
3) Although in 2000-2010 the value of British Petroleum shares reached its maximum of $80 , nevertheless, a number of man-made disasters took place in the corporation, the maximum in power among which was the explosion of a tower in the Mexican Gulf in April 2010. Then the value of shares and capitalization collapsed by 56%
4) It would seem that it could not be worse, but 2020 proved that there can be, and a 63% drop in the value of shares of there proof.
First, the CoviD crisis (late 2019 — early 2020), then the negative value of WTI oil futures and a general decrease in demand for oil and oil refining materials from cars and aircraft, forced the corporation to fix a loss in 2020 at $5.7 billion , however, they predicted -$4.8 billion
British Petroleum's annual reports are considered almost inside information. They predict that by 2050 the demand for "clean" energy from renewable resources will increase from the current 5% to 55-60%. Accordingly, companies that do not have time to implement a high-quality and smooth energy transition from oil, gas and coal to the production of "clean" energy from renewable resources are doomed to fall.
Finally, our thoughts on the possible future price of BP's stock.
For ourselves, we single out the level of $20, as critical.
Fixing the price above this level will suggest that the corporation is making an energy transition according to the schedule, and, accordingly, the price of shares may rise to $36 , to begin with.
If the BP stock price starts trading below $20 , it means that something is wrong in the company and soon this news will be available to everyone and in general, and the value of the shares themselves may fall to $10-12
