- Realize that the “downstream white-collar workforce” belongs to the “glory-days” of $40B/year profits and is a misfit in the current world.
- Based on #1, change and modify the workforce to become a “no-frills” operator.
- Abandon most research programs and layoff all those high-dollar scientists that work on useless “pie-in-the-sky” ideas.
- Instruct all the operating units to not rely on any corporate-staff for help but fend for themselves.
- Layoff most of all the downstream white-collar workforce on campus, including management. They would realize that these employees contribute nothing useful, except to make a ton-load of money and drag down the profits. Would make thrifty culture the vogue.
- Adopt similar workforce reduction strategies in Europe and other high-cost places. If needed, sell assets to get rid of the employees and management.
- Send as many white-collar jobs to “low-cost” centers, if needed.
- Eliminate as many useless VPs, Divisional managers, Department Heads and Group Heads as possible. Completely gut the “white-collar” workforce. Keep it minimal.
- Become a lean-mean machine!
- Pay the dividends!
17 replies (most recent on top)
If ExxonMobil wants to be the Walmart of oil and gas, then their benefits and employees will look, feel, and act like Walmart employees.
@OP - written like a true operator. Thinking engineers are useless and not worth their cost. But you have to realize that design changes, projects, improvements, and all the actual detailed work is done by engineers. But we all know you’ll “cowboy up” and put your coworkers at risk. Good luck with that.
Exactly right and well said. Most low-budget downstream companies would laugh at the army of engineers that work on established technologies, away from the operating units, running some complicated spread sheets and models.
I moved to a small downstream company and this is how we operate. VERY minimal full time white collar support staff. Utilize contingent labor staff to flex during turnarounds and projects. Keep most decisions at a unit level and let the local engineers and operators own the performance and maintenance. Corporate helps guide the marketing decisions and they set the project and budget control parameters and the site fills in the rest through planning and execution.
True - you can sell Prump Gas in Texas and that red midwest stretch for at least 10 more years.
But oil only has long potential in chemicals, plastics, specialties, etc.
Every carbon atom has another use than popping F-150s down the road.
'Downstream' is down the terlet.
Don't you know?
Most technologies in downstream were invented 50+ years ago. Doesn’t need an Einstein to understand them and help run them.
Has OP worked with low cost engineers before? Good luck!
EMRE is just an appendage - can be discarded.
fire Darren Woods
$100/bbl (even adjusted for inflation) was only short lived to a small periods of time. EMRE definety isn't a relic of that cost. Only a misinformed fool would try and pass that nonsense. Exxonmobil struggles from declining market share and eroding revenue by selling assets to pay the dividend.
https://www.macrotrends.net/1369/crude-oil-price-history-chart#:~:text=The%20price%20of%20oil%20shown,2020%20is%20%2437.14%20per%20barrel.
This appears to be precisely the process we are beginning now. Already started in some affiliates over 5 years ago.
Even if downstream is integrated to chemical, operating costs is way ballooning more expensive! operationally one down the other will be down too.
Oh come on, who cares if we have white collars black collars or rainbow collars in downstream. Xom makes money because upstream makes money, xom loses money because upstream loses money. Have a downstream genius running the show was the biggest mistake ever made
Not just CSR - Fire the whole of EMRE!
It’s a relic of the ($100/bbl oil) past.
Fire CSR out of EM
I like what Shell recently announced.
Any Refinery not directly beside a Chemical facility - shut down or sold.
Oil still good for the plastics, even lubes, but not combustion.
Other options for energy - and Shell ready to explore them.
Many articles out there on this topic in the past month.
Guyana in the woods.