I understand that the first thing that comes to mind is the divestment of our renewable businesses, which I do not doubt. I just don't see a strategic player like Elliot not having us sale something of value as well to gain more capital. My thought is that refining could be in a dangerous place right now. I could see bp going back to being what we're good at - Exploration, Drilling, Production. Refining is getting more complicated as margins are affected by cheaper kits in Africa and the Middle East. Would it not make more sense to dump the Euro refining to INEOS and the US to a Valero or someone of the sort?
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Seems if you are refining Oil that selling it makes sense as well. The Convenience part is to create brand loyalty and add profit margin to the gasoline sell. Why stop at ARCO, BP, Amoco, Thorntons over Exxon or Valero lets say? Its not about getting into selling coffee and cigarettes people.. And honestly, getting some cleaner energy diversification is wise idea but those investments will take time to see value and when quarterly stock price is all that is valued well... And F u to anyone thinking laying off people and sending jobs to india is good.
will JV the refining bit I think
Before anything goes-30% of employees must go,- this year. That increases the value of a sale because profits and net cash flow are maximized. Plus any acquiring company will want a clean balance sheet. The acquirer does not want to do the dirty work that BP should have done. Bye bye
Do you think the Murray’s minor surgery was him getting run through the wood shed by Elliot?
Link to the letter Elliot sent to the Philips 66 board on February 11th. I would think the letter to bp board will be posted soon with similar a similar tone.
https://streamline66.com/elliotts-letter-to-the-board-of-phillips-66/
But our strategy is coffee and cigarette sales. We’re experts at it.
We drilled 3 bad wells in GOA last year at hundreds of millions loss per well. We don't talk about that.
You actually think we’re good at exploration and drilling? Look at our results the last few years. The results speak for themselves.
Unless you thinking delivering a new well for 1.5x AFE is a win.
The genius of the convenience strategy was a) expecting people to buy overpriced snacks in the store whilst b) developing BP Me card payment so that you don't have to go into the store in the first place. That's why LT get the big bucks.
We in Castrol hope that they would sell us. Our "marriage" with BP is dysfunctional
the idea convenience was going to pull in big money is laughable. A few people buying an almond croissant at M&S while they charge up their car isn't going to replace a 40% reduction in oil production.
While refining has had a rough patch I wouldn’t be quick to discount it. The US refiners are doing well and there is good synergy to be had between upstream, downstream, and trading.
Whiting had an unfortunate power incident but it’s not like every refinery in the gulf gets sold after getting hit by a hurricane.
Regardless as long as you work physically at an asset your job is fine, even if it’s divested.
lose SJS. the average IQ in the company would go up by double digit.
Whiting and Cherry Point are goners.
Castrol has marketability and brand value, it is a good asset. Get rid of TA/ampm/thorntons first....a very high headcount for small returns. Then sell the hydrogen & biofuels to someone who can develop them faster and cheaper.
Everything should be sold. This company has proven it is inept. bP will not exist in 5 years.
It’s more likely they’ll sell retail and Castrol.
Posts like this demonstrate why none of y’all are CEO. Just a bunch of malarkey.