COP will soon layoff significant numbers of hardworking and skilled personnel with significant institutional capacity and knowledge in its efforts to become as per McKinsey Focused Future Proof….
What does this new COP really look like and at what cost?
Or are the management consultants correct in that COP is rudderless and need of institutional retooling.
16 replies (most recent on top)
@b1 you’re an id--t if you think COP was running things better. Concho ran 30 rigs at point. Concho people can run circles around the COP people in some cases. All the SMEs who had “special projects” just to hide that they had no real skills, responsibilities or accomplishments, were weeded out. Your welcome for the more than doubling of your stock if you are competent enough to get any.
D-mb and d-mber.
US oil production to peak by 2027 as shale bo-m fades, EIA forecasts
April 15, 2025
https://www.reuters.com/business/energy/us-crude-oil-output-peak-by-2027-eia-projects-2025-04-15/
CERAWEEK: US oil execs eye CO2 injection, AI to slow looming oil production declines
March 11, 2025
https://www.spglobal.com/commodity-insights/en/news-research/latest-news/crude-oil/031125-ceraweek-us-oil-execs-eye-co2-injection-ai-to-slow-looming-oil-production-declines
US oil production will likely peak later this decade, but technologies like artificial intelligence and CO2 enhanced oil recovery can be used to squeeze as much oil as possible from US reservoirs, oil company executives said March 11.
"We actually see a peak of US production within the next five years or so," Vicki Hollub, CEO of Occidental Petroleum, said at the CERAWeek by S&P Global energy conference in Houston. "We think that between 2027 and 2030, it's likely that the US will see peak production and after that, some decline."
Ryan Lance, CEO of ConocoPhilllips, gave a similar timeline.
"We probably plateau later this decade," Lance said. "It's going to be slow decline beyond that, because there's a lot of resource."
They will keep cutting until it starts to affect the bottom line.
@ny Interesting viewpoint. Sounds ominous, any engineers out there that can refute and claims made about continued slow decline of EF and Permian?
@nv Hope is not an option according to the great Puba that run the oil industry. We can never discount the ingenuity that people in the oil sector have. No one would have predicted 13.6 MM a day back in 2000…Ever…but, the wells and fields are now showing signs of depletion…even those sweet spots in the Permian and Eagleford are not as guaranteed as before….
ConocoPhillips top leadership now knows their runway is less than 6 years….and options don’t include bolt on or organic growth…the CEO with the poorly fitted suit will need to simplify and sell the company preferably before Warp Speed 2…
@m4 Most O&G are going through this currently. We aren't alone, the entire industry is having to get lean and mean. Margins on Permian oil are getting harder to come by as wells produce more water, it is more difficult to dispose of, and production curves flatten out. Let's hope that new methods of extraction are discovered that can propel Permian into version 3.0
Conoco will be bought by Chevron within three years. This cutting to the bone is the Marathon model of how to prepare for the sale of the company. ConocoPhillips will just become a footnote.
double negative?! So you do think. . . .
I don't think the person asking these repetitive questions does not work at COP.
@e5 Have you even reviewed the org charts that the ELT released? Go to the CEP site and it’s all there. The head of the Permian BU is already named and he’s legacy Concho. Also, the Concho leech is still on the board. Ain’t nothing changing. I believe what @dx said, they’ll use this opportunity to clean shop of hCOP personnel that didn’t get on board with the Concho way. I believe one of the biggest mistakes the board made was bringing so many of those people onboard believing they could ‘integrate’ them to the COP way of doing things.
@dx how do you know that when the org chart hasn’t been released yet ?
@b1 that's wishful thinking at best when old concho personnel have been made the leader(s) of the Permian BU and tasked with re-orging into a more concho-like structure. Vast majority of the cuts are going to be heritage COP.
It’s going to continue to flounder and flail. More layoffs, more acquisitions, and more bs from leadership.
@a1 you’re the first person I’ve heard on here put your finger right on it. They’re gonna get rid of all the old concho mafia. There’s going to be some IT, engineering and HR cuts … but they’re coming for all the concho clowns who refused to integrate. They ran that place like a strip club and the day of reckoning is coming. Remember when the concho guys thought they were hot sh-t and tried to tell COP how to run things ?……chop !!
Recent acquisitions have not been additive and have been poorly integrated into COP. Significant turf wars and alliances have resulted in inefficient development of assets. The upcoming mass layoffs will address this phenomenon directly. Expect divestments and refocused capital investment.