There are some rumors that there will be a new Reorg announced early next year for IG and upstream units. Any thoughts/confirmations?
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@OP Ya think?
@ap 18 months is generous, it might take 18 months for outcomes but sure feels like they plan the next one before they are even done with the current. Feels like they just spin the wheel to see which asset or business is next in line anymore
Look at this Video around Stellantis ex-CEO. Think he went to the same school as Wael.
CutCut and share buyback. Thats it, take the money and run. No soul left any any company these days.
https://youtu.be/Lb_mSTnnEaQ?si=CkcHy_wXUh0bOu-H
They promised on capital markets day to carry on and cut cost further (it’s all YL knows how to do after all. Cut cost and make cringeworthy videos every few weeks) so there will be pressure for each team to do their bit. They’ll continue to get more sneaky and deceptive about it at YL request as he doesn’t think employees are human beings - we’re just numbers to him to treat badly.
I have heard no such rumor.
The bloat is insane. The number of people required to accomplish a task is wild. Let’s say planning to drill a well. You have at least 5-7 technical people, all of their TAs, some sort of team lead, etc…so maybe like 12+ people involved. At a smaller company they maybe have 3 people total involved in well planning, lots of tasks are outsourced to contractors and there’s not a laundry list of requirements and processes to adhere to. Lots of the bloat is by design from people building their little empires all over the company.
@dd
From @ba
You raise a really good point about the recent set of big sales: Aera, Permian, Appalachia, Haynesville. And in Canada: Fox creek, Orion, Peace River, was the other gold creek? And a lot of downstream too! But, what'd they start Solar, wind and CCUS, if you converted that to BOE that adds about 250kBOE/day. Plus you have to market electrons differently than you do oil, so that's not exactly duplication. You're right we should have shrunk proportionately with the asset sales.
The remaining deepwater isn't that big.
So where's the bloat? Several layers of management? Too much HR? IT? Hiring 3 Indians to replace 1 American?
Look at our staffing levels over the past 15 years. We are relatively flat.
https://www.macrotrends.net/stocks/charts/SHEL/shell/number-of-employees
In that timeframe, we have cut loose 5 major upstream land assets in the US. We have gotten rid of many refineries. I’m not sure about a global scale, but it feels like our US activity level is down significantly and staffing levels don’t feel drastically changed.
Anybody that you talk to who worked the Permian would tell you we were way overstaffed. Other operators have single engineers overseeing hundreds of wells. Those people were wearing multiple hats. That’s not how Shell operated out there. I suspect the same is true in Deepwater. We are out of shape and don’t even know it.
Is it called Speed 26?
If Shell's going to Exxon or Chevron levels for per capita production about 40,000 more people or 45% of the current workforce.
But where's the bloat? Honestly, being at Shell for 2 decades, I don't see a group that is particularly bloated. What I see is that Shell has chosen more difficult and marginal assets requiring more staff to get less profit. Imagine if Shell didn't walk away from Guyana, or sell Permian. Remember wasting years on Burger (Chukchi sea offshore Alaska) Or what if they didn't buy Sparta trying to polish a design for an asset another company rejected. In my honest and humble opinion it is the assets that management selected to buy and develop. Our assets are driving the staff count.
How about sticking with what we currently have for 3-4 years, then assess accomplishments, synergies and external benchmarks against what those in senior mgmt that implemented the structure promised.
If all promises met, bravo, carry on and pay out the big bonuses.
If not, sack the lot. If there is no accountability with consequences and the deck is continually reshuffled you’ll keep getting subpar results.
I did not hear that rumour
expect a reorg every 18 months from captain cutter pants 🐳 🦢
also he knows how to do is cut and buy stock. stock price has been below S&P 500 and slightly beaten by all of our competitors during that time but he has no other ideas and zero accountability so it doesn’t matter.