bp Forecasts Lower Q2 2026 Oil and Gas Production Despite Stronger Energy Prices

SEATTLE (Oil Monster): Energy major bp anticipates a dip in upstream oil and gas production during the second quarter of 2026, mainly on account of scheduled maintenance work and operational disruptions. Meanwhile, the company expects stronger crude oil and natural gas prices to support its financial performance during the quarter.

ALSO READ:

Oil drifts down after OPEC+ agrees to raise output targets

OPEC is likely loser in Gulf's post-war race for market share

According to the latest trading update by the company, total upstream production is projected to range between 2.17 million and 2.22 million barrels of oil equivalent per day. This is significantly lower than the 2.339 million boe/d reported in the first quarter. The output will be impacted by the ongoing maintenance activities, particularly in the Gulf of America, along with disruptions affecting operations in the Middle East.

Production from bp's gas and low-carbon energy segment is also expected to decline, while oil production is forecast to remain below first-quarter levels.

Higher natural gas prices are expected to significantly strengthen results from the gas and low-carbon energy business. At the same time, firmer crude oil prices are projected to deliver a substantial increase in earnings from bp's oil production operations. The company also expects stronger refining margins to improve downstream earnings, despite weaker quarter-on-quarter refinery throughput.

Meanwhile, bp said its second-quarter financial results will include a non-cash asset impairment charge of around $1 billion, largely linked to investments associated with its low-carbon energy transition strategy.