I hope this communication finds all of you and your families safe and well. These
have been trying times. Given recent events, I want to provide some perspective
as we move into the second half of what is a very difficult year.
By now, you should be aware that we announced a second consecutive quarterly
loss last week. The combination of an oversupplied market and historically low
demand from the pandemic have created unprecedented challenges for our
industry and also for our company.
We're responding in decisive ways. As we outlined during our investor call, we are
on track to meet or exceed our spending-reduction targets announced in April. I
thank everyone for their focus and contribution to this effort.
As you also may have heard on the call and from your management, study work is
underway to assess the potential for further reductions from structural efficiencies
and lower activity levels, and includes an evaluation of workforce requirements
around the world.
In addition, there are other cost-savings measures in the works, such as the
recently announced suspension of the savings plan match for U.S. employees.
These are not easy decisions; they will personally impact many of our colleagues
and friends. Unfortunately, unprecedented challenges call for unprecedented
actions. Know that these decisions are taken only after a thorough evaluation and
thoughtful deliberation.
These measures are, however, critical to ensuring the success of our company.
Just as critical is the requirement that we stay focused on the job at hand -
keeping ourselves, our colleagues, families and neighbors safe, and keeping our
operations running safely, reliably and efficiently.
While the pandemic and resulting impact on our industry has been severe, we
know the fundamentals of our industry remain strong. Growing populations and
prosperity that come with billions of people achieving better lifestyles will increase
demand for the energy and products we produce. Our work is vitally important to
enable economic growth and improved quality of life.
I want to reemphasize how much the Management Committee appreciates your
dedication as we work through these challenging times. The steps we are taking
will ensure that our company will remain ready to meet society's growing needs
and prosper in the years ahead.