During the last two reorgs (Alpha in 2015 and Transformation in 2020) we were losing billions and oil was below $40 bbl. Now crude is in the 70-80 range, the economy is strong, and we are raking in billions with all time high FCF. And this reorg looks like it’s going to be as big as Transformation and much bigger than Alpha. It just seems odd.
17 replies (most recent on top)
Back in 2015, JW, an accountant did the only thing he knew and laid off the costliest - and most productive employees. See how that worked out esp. in Tengiz.
We have not maintained it like MW said, others had became way more competitive.
This comment from Marc applies to Chevron :
Marc Andreessen about Elon Musk $TSLA
“Elon identifies the biggest problem that the company is having that week, and he fixes it, and then he does that every week for 52 weeks in a row
And then each of his companies has solved the 52 biggest problems that year, and you know, most other large companies are still having the planning meeting for the pre-planning meeting for the board meeting, for the presentation”
its all about maintaining either the first or second TSR position in the industry....Chevron currently is not in top 2.
You can invoke all the cyclicity in the history of oil prices, but you must add into the mix this time that, climate change or not, oil as an industry has crested (actually did around 2014) and is entering a decline period. 30-50 years if left to itself, sooner if green forces intercede. Staffing with be gradually diminished accordingly, starting with exploration / appraisal (what will likely be hit hardest in Chevron's next layoff round), then development. Production will be left to turn the lights out.
“Chevron (CVX) retained its spot as the most shorted large-cap stock in the Americas for November, according to the latest Shortside Crowdedness Report from Hazeltree.” Need I say more?
nothing too weird as long as it can boost our share price
It’s every 5 years like a clockwork. If you know you won’t stay for another 5 years then it’s really compelling to take EOI
Its not weird. Its predictable. Chevron is led by mo--ns who don’t understand Upstream. Cutting costs is their only lever they know to increase earnings. Too bad that only works for a short window.
It's fashionable right now.
Three things. Firstly, storm clouds are on the horizon. Oil could very well be $40-50 for the foreseeable future. OPEC+ can turn on the taps at any time…. Secondly we owe investors from the TCO mishap. Those billions in NPV have to be accounted somehow. Lastly, despite transformation, both headcount and associated costs have ballooned relative to precovid. You can only go through many earnings calls without addressing that question, especially if it’s an area your main competitor keeps bragging about.
This is a major reflection on Chevron’s executive leader ship. If we can with our ears with oil in the 60–70 dollar range that is not an employee issue. This is the leadership and direction of the company.
No way anyone can know that otherwise we would all be shorting oil commodities. Price is a balance of supply and demand. Oil did briefly go negative during COVID but here we are after the world demand for oil was gonna go away (2020).
“Global oil supply will far exceed demand in 2025, that's why“
MW needs a bigger bonus.
Global oil supply will far exceed demand in 2025, that's why
Keep your organization tidy during the booms such that you don't need to cut so deeply during the busts.
Corporate greed passed the threshold of decency after the pandemic
Anything for ELT to get their next yacht.