Any takers on what ExxonMobil's next business move will be? Will they attempt to diversify from O&G, wait for algae research to bear fruit, or will they simply use this price environment to double down?
I hope whatever strategy we pursue allows DW to get his compensation back in-line with industry peers.
Aramco sounds about right.
Always wanted to work for a kingdom.
Oh - wait...
I'll bet they'll divest some of their poorly performing refineries and attempt to get into the utilities market. Whether they will be successful is another question.
I'll recall a little anecdote.
An Exxon group of Ops Managers from Germany (Harburg, etc.) were taking extended tour of various US sites and I luckened to be a host/chaperone for the entire trip.
We visited Baytown, Baton Rouge and lastly the EMRE New Jersey site.
(To put in time context - we all attended Astros game in the Astrodome).
As we bumped along in a Limo/Van from a trip to NYC on their last weekend,
one of our schoens sprecht:
"In all these places US - the roads are so bad and not maintained."
The EMRE manager replied - without hesitation:
"Yes - we didn't get to rebuild all of them in the last 50 years. Bombed out. Like you guys."
Maybe that's an option.
@yya, unless Aramco comes to the rescue ! That should be exciting - full circle!
Agree with @huv - they will die on the O&G hill. We no longer have any advantage, so our fate is tied to the price of oil, and that is tied to how much MBS needs to keep KSA citizens from revolting. Right now what I see is no opportunity , hence returning the company to the shareholders in the form of dividends. Sell what they can (though no takers right now), chop an arm here, a leg there, to keep shareholders from selling and stick price from tumbling ... like the Monty Python Knights who say "Ni", 'tis but a scratch ... unless we meet catastrophic failure somewhere along the way which will accelerate things
@jse+16QZq5IN : All of these add up to max $5B/year. You still need to find 10B more to pay the dividend.
Oil prices will come back to $60 end of next year, Corona will be long forgotten, there will be a vaccine. People are feeling stuck and bored in their homes, they will fly again for vacations and cruise ships will be back to normal. The next 18 months will be tough for Exxon. The cuts they are making, the rude awakening that will force changes and the revival of oil prices, stock will be around $60-75 by end of 2021. In the meantime, good idea to get out as the culture is unlikely to improve. ExxonMobil will survive and grow, but it will not be because of the people but because of oil prices and stupid people in the world still having 4-12 children in some countries that will keep increasing gasoline and other fuel demand. And jet engines, big diesel trucks, cargo planes, F16s, cruise ships, ore and mining excavations, long distance pleasure travel - none can be possible with wind mills and Tesla. ExxonMobil will stand up again, it will never be the same as in glory days, but a bruised and limping animal can still walk and go for the prey.
They will die on the O&G hill. They make their bed 10 years ago, now they have to lie on it.
First, though - what they may consider:
Make all those unskilled roughnecks in the Permian - algae farmers.
Make all the supervisors - corrections and immigration enforcement officers.
Make all the geologists - fortune tellers.
Make all the HR, PG&A - political consultants and professional liars in the administration.
Make all the traders and sales people into Amazon fulfillment order center workers.
Spin EMIT and sell it as it's own tech company - it's probably the only that can function.
That should give Darren and minions enough rope to cash in his golden parachute.
Algae research is a fraud perpetrated by many CSR folks including its senior management. External companies and agencies that are getting paid through this initiatives (over a period greater than $600 million) are having a gala time thanks to CSR stupidity and are happily draining ExxonMobil investor's hard earned money.
Do the technically established and realistic volume, and cost per barrel calculations and you will be amazed with the arrogance and stupidity.