I know IOL is always looking at XOM to tell them what to do, but still thought someone in IOL might have some idea of what is going on. Is there anyone in this chain with any internal info on what Kearl and Cold Lake will do?
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Imperial folks are walking around the campus as though we have scored a major victory by "recording" a $3M profit. Thank you Justin Trudeau for the CEWS.
Let's talk about the overvalued assets, which when adjusted to market will cut us down in size.
From Canada's largest O&G, in less than a decade, we have slipped to no. 5, that too after several majors exited the oil sands play in Alberta.
A leaner organisation will be competitive going forward.
How could they not entice those over retirement age, and piece out those that are close. Some would go, theyd be stupid not to.
There are so many things they could do to reduce headcount without k–ling someone who is early or mid career. They will end up in the same hole they were in years ago (no plan for future)
I noticed that folks from the upstream are often 1 or 2 salary grades higher than downstream, for doing similar work. IOL/EM always treated upstream as their crown jewel, and downstream as the blacksheep - how they have divested the retail business and left Toronto are two prime examples.
To individual below (@4hxo+17vHMeJY) :
To be honest, you are probably right. I am just sharing some of the coffee chit chat amongst us old farts. I have been retired for almost a year now, and just stay in touch with the rest of the crew at IOL.
My background is maintenance/execution, most of my time in Ontario refineries. Past couple of years, did a couple of stints at Kearl. My observation was the following: fairly standard and routine tasks/repairs done at the refinery, were contracted out for engineering which was not required and we always had to deal with EPC which was awfull. All the field guys hate the nonesense c-ap coming out.... At the ontario sites, the maintenance engineers we were dealing with at least had a bit of common sense (back in the day) and we can get things done in a reasonable time frame.
Not sure why most of our job packs were EPC for Kearl. Was not dealing with IOL, so cant comment.
This is to the person who said MASSIVE cuts are coming to Upstream. I agree that there will be head count reduction in Upstream, just like everywhere else. No argument there.
My question is, why do you think Upstream relies on EPCs for engineering? Projects are done through EPC, Yea. But Operations support is all in-house in Upstream.
Just check how many Downstream engineers have ever used their PEng stamps. In Upstream we stamp/permit everything inhouse. We take the risk on our own shoulders When things fail, we take the heat.
Don’t believe me? Just ask your buddies who have worked with Upstream.
Not all downstream departments are careful with spending. Lubes blows money like there’s no tomorrow because they’re arrogant and had no idea they’re losing money. Sales conference in Italy anyone? Florida?
There will be MASSIVE cuts to upstream org. The upstream have lived a cushioned princess life full of excess money, always replacing vs replace or evaluate, and other sorts of wasted $$$ expenditures. Zero risk tolerance. Everything sent and done by EPC or contractors. Just replace with new, blindly, even if you don't know why or how it failed. Only to repeat, over and over again. Always WAY too conservative. They don't understand risk, risk based work selection, etc.. Don't care about fit for purpose or value added. Totally different than downstream... Millions and millions have been wasted, unnecessary. The refineries are so lean and try so so hard to cut costs and save money. Very disciplined. Those savings historically have been passed on to upstream who just p-ss-d it all away...
Luckily, downstream folks have been injected to the upstream over the past several years and have noticed this trend, and have communicated up the chain. Management knows, everyone does. The good old days are over... The veil has been uncovered. If you are in upstream, suggest you start looking and applying before the blitzkrieg comes.
Its unfortunate because its not your fault if you grew up or were raised in the upstream environment. Happens by chance or luck. You missed out on developing necessary skills to cope in the current environment which will likely remain for long time...
More cuts coming
IOL already laid off 8-10% quietly and more are announcing their retirement weekly , perhaps they are being encouraged with incentives (that’s what i have heard , like 1-2 years con pension contribution )...
In the lower 48, we've been wondering what is happening with IOL. You guys have the 2nd largest headquarters and with Kearl in the red it would seem natural that IOL will have to do resource reductions...but there doesn't seem to be any news. Australia, UK, & Europe have had announcements and US got hit this summer and US is anticipating more soon. So, how is it that IOL isn't losing staff?