Bit of a noob here, so hoping someone can explain how it would be different for us if we move from a BU structure to an asset structure. Aren’t the BUs functionally based on assets? What am I missing?
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In an asset class you dont need drilling engineers for GOM and ABU and SABU , you just need one group based in Houston
Asset class pluses: better delivery of innovation and standardization; global footprint provides greater scale and commercial leverage with suppliers and customers; better business planning and forecasting to drive capital decisions; larger leader pipeline with global P&L experience
Negatives: siloed innovation and talent; duplication of assets classes in each country may create confusion; still maintain some regional structure one or two layers down as a span breaker
Asset class would be DRP, C&D, and SSHA combined into 1 role each on the engineering side and the geology side. Oftentimes, that means 1 person is responsible for 1 to 2 rig lines instead of whole areas. And the person would follow it from permitting all the way through until it's fracked. You'd cut your engineering and geology staff by at least half. If these same people are handling execution, then there's a high likelihood of burnout. So if we go to an asset class, I truly hope there's some sort of middle ground for these people as that lifestyle is not sustainable long-term.
a business unit is a unit of business, bb
I’m a noob. What’s a business unit?
Asset class (shale and tight), think combining Permian and Rockies, so much duplication - our competition handles differently "lower 48" as one example of a geoagraphy
Will CBU make the cut
In theory you would reduce the workforce footprint by going to assets versus business units, for example you have many business units for wells (SASBU, ABU, CBU and et cetera) but then you move to just asset based wells , platforms or refineries and et cetera. But for 99% of the workforce this is irrelevant unless, as the poster said you get many levels above. The immediate impact is layoffs, for example, each refinery has their own coordination team, in theory by going to assets versus business, you could get one central coordination team for all the refineries, that would be epically stupid but I guess that could be an example.
There is very little difference until it goes up about a dozen management levels, at which point it just changes the townhall you attend twice a year.
You lost at “noob”. It’s just as bad as the term “hubby” or “fur baby”, for crying out loud!