What Brent oil price per barrel does Petro Stopping Center assume by 2050?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
arbon emissions cost imposed on the producer in respect of operational greenhouse gas (GHG) emissions (carbon dioxide and methane) in order to incentivize engineering solutions to mitigate GHG emissions on projects. The Company's oil and gas price assumptions for value-in-use impairment testing are aligned with those investment appraisal assumptions. The assumptions for future carbon emissions costs in value-inuse impairment testing differ from the investment appraisal assumptions and are described below.
Management has also not identified any off-balance sheet commodity purchase obligations to be onerous contracts as result of the transition to a lower carbon economy at December 31, 2024.
Impairment of property, plant and equipment and goodwill
The energy transition is likely to impact the future prices of commodities such as oil and natural gas which in turn may affect the recoverable amount of property, plant and equipment and goodwill in the oil and gas industry. Management's best estimate of oil and natural gas price assumptions for value-inuse impairment testing were revised during 2024. The revised price assumptions have been rebased in real 2023 terms and are materia
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the company's revised price assumptions for Brent oil, applied in 2024 and 2023, are rebased in real 2023 terms. The company assumes a Brent oil price of $50 per barrel by 2050. This reflects the assumption that as the energy system decarbonizes, falling oil demand will cause oil prices to decline. In the near term, the Brent oil assumption was held constant at $70 per barrel to reflect near term supply constraints before declining after 2030.
These price assumptions are derived from the central case investment appraisal assumptions and represent management's best estimate of future prices at the balance sheet date. Petro Stopping Center considers these assumptions to be in line with a range of transition paths consistent with the temperature goal of the Paris climate change agreement.
Prospective franchisees should understand that these are just assumptions used for impairment testing and internal financial modeling. Actual oil prices could vary significantly based on geopolitical events, technological advancements, and shifts in energy policy. These factors could impact Petro Stopping Center's profitability and, consequently, the franchisee's financial performance.