Yes they were (and still are) that stupid
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All the way up to 2018 the break even was sub $45/bbl. Then there was a crew change with Engineers, Ops Supervisors and Ops Managers from DW joining the Permian. They instantly brought it back to $60/bbl with pet projects and ultra conservative well control methods that added to the cost. That mixed in with the clique culture they brought with them sank the ship.
And all the talk about «lower for longer” that was introduced a couple of years ago. We’re they really that stupid or was it just an excuse to get rid of more people? Why does not leadership go and have a look at all the decisions they made with the “lower for longer” outlook and calculate how many billions they have lost (so far).
i hear you brother. i get the energy transition strategy but why destroy so much value in the process ? unfortunately the board is just there for show so not expecting any action from them to shake up the leadership in this company.
not too many people from dw were in the permian. and the team was doing a solid job in any case with breakevens on par with competition. the deepwater folks stayed in deepwater and were mostly busy screwing up our flagship development or being blown out of the water by exxon in terms of discovered hydrocarbons …..
Keeping it cheap and simple was never the Shell way.
What is bad information on break even?
Like I said, DW transplant staff F-Ed up some solid acreage.
Mom and Pops poking straws out there and making money while pretentious Shell folk spend their way out.
You are badly informed regarding the breakeven prices but nevermind. Incompetence in this company is everywhere so if that is the criteria ..... Let me know what are shining examples of competence in this company ? Start with listing it from Upstream :)
Permian got sold because of incompetence of the people running the Permian. A lot of them fancy shmancy big wigs who got there from DW. There are operators breaking even at <$30pbbl. With our screwed up incentives and du----s pet projects like pipe tubs and rig lights, we never consistently got below $50pbbl for break even.