67% higher spending in 2019-2023 and better execution means Exxon is widening the gap over chevron
https://www.wsj.com/business/energy-oil/exxon-spent-money-to-make-money-66ae8d14#
18 replies (most recent on top)
Yeah, people here forgot about Exxon cutting company match on their 401k's. That would go over like a lead balloon with our entitled snowflakes.
fun to read this thread and then hop over to the EM board
I remember ExxonMobil got hammered by the Wall Street analysts for continuing to spend large amounts of CAPEX in 2020–2021. It appears they knew more than a bunch of NYC bankers.
Golden rule of upstream: the best time to develop your resources is in a downturn.
XOM was also fortunate that a lot of Guyana development happened during COVID when service companies would give away tools and personnel for next to nothing to stay on a job. We fiddled around for a couple of years then had the stroke of genius to rebid everything in the most inflationary economic conditions in forty years.
@1mzz, MW is perfectly willing to do whatever it takes to pump the Permian at maximum production, just look at any of the more mature UCRs and you see this is not sustainable in the long-run. He knows full well that that just hastens the day when Permian production will fall off like a rock off a cliff (think 2030). It'll be EB's problem then, while MW and cronies enjoy their retirements.
Why can't anything be done in all the town halls and other communication channels to bring these issues up and turn things around? What could be done to make things better other than just jump ship
They don’t understand up stream. They reduced the high up technical people in upstream and will loose more. Especially in deep water where it’s needed. Anyone can play the shale game but deep water with bid reserves requires talent. Talent that Exxon, Shell, and BP are trying to hire in every day. Just wait the day of reconning is coming for the company just like this country. Both of them are way to short sighted.
Most of the production increase was through acquisitions not organic.
Our upstream assets are under invested. Give it 5 years...you will see the damage made by downstreamers
It coincides with the shale bo-m. 1MM-bbl/day coming from Permian.
Our production is now >3.3 million BOE per day after six years of MW and the Downstreamers. Under JW and GK we talked about 3.3 forever, but never got anywhere close.
The comment on the downstream is spot on.
MW and the downstream gang ousted the GK upstream lot, and for good reason, after all the projects execution disasters happened - Angola LNG, Escravos GTL, Gorgon, the thing the legs fell off in GoM, the list goes on.
But the problem is they have spent their careers counting the stationary in the refinery or worrying about “shrinkage” at gas station convenience stores.
The Upstream, which is the only part of the company that matters, is a high risk cr-p shoot and needs a bit of flamboyance to succeed and even then it’s not guaranteed. Downstreamers generally don’t fit this bill, so there needs to be a clear out. But I don’t see the internal talent to do it.
So why don't you all who think they are so much better go work there, or can you not make the grade? Imagine that, rotfl.
Exxon is business-savvy, and focused on their strategic goals. Chevron's "strategic goals" seem to hover around social engineering, increasing the dividend, and PSG 27+ bonuses.
I think the problem is with MW and his downstream gang not understanding how upstream works.
That is a difference on thinking ahead and not short sighted, having 2 different CEO mindsets and vision.
Wait until they get the Hess stuff…