MW has put a lot of eggs in the Kazak basket.
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Chevron is worst in the industry at PR. Most of our PGA people are engineers instead of pro journalists.
@1qag, the 'big train wreck' items are viewed as 'so unlikely' that they're not considered (incredible naivety). Also contingency plans are made for the 'vanilla' items, but we bury our corporate heads in the sand over the catastrophic items. If you want an example, go back to that Pennsylvania well that exploded. No contingency plan at all how to handle it, and it clearly showed in the PR debacle that followed.
more like easter eggs?
Burning down the house this week overseas. Makes Colorado look like a cakewalk.
I have never seen anything on a CVX risk register other than vanilla cost and schedule items. The big train wreck items which seem to occur with some frequency are never there.
@taz, you may want to recalibrate your sarcasm detector.
“ Khazak unrest has always been on the TCO risk register”
Ha ha, what a classic chevron (non) response.
If anything bad happens in Kazakhstan, Chevron will lose 50% of its book value and virtually all of its long-term growth potential. Good time to be easing out of Chevron stock if you're over-exposed (>15% of your portfolio). This will be like an airliner losing its engines. ... and no, MW is no Capt. Sullenberger. Oh, and by the way, did you see that Exxon announced two more giant Guyana discoveries, while Chevron Exploration has announced (...crickets...).
Biden’s weakness in Afghanistan was a wake up call for Putin. TCO will be majority owned and operated by the Russians in the short future. Khazak unrest has always been on the TCO risk register
If things don’t change quickly or Russia swoops in we could lose the entire asset including the $50 billion spent on FGP. The loss of reserves would be drastic. TCO estimated recovery exceeds our entire booked corporate reserves! We have sat on this asset for decades, complaining about export capacity, milking it along with a handful of wells at 500,000 bopd when we should have run it at 1-2 million bopd and been done with it by now.
no, @bbs, Ken Derr was responsible for getting Chevron into Tengiz around 1992. At the time, it was considered a 'betting the farm' (that is, highly risky) move on the part of Chevron. MW was probably a lackey high pot back then.
2/3 of our reserves and resources have been in Kaz for decades.
No need to be sarcastic. All future production growth (or rather maintaining production) is based on Tengiz and Permian.
This was MW’s decision as opposed to the past where production was more diversified geographically.
Yes MW decided to buy into TCO. Then expand multiple times. Then he approved SGP. Then he approved FGP. He has had a 30 year tenure as CEO. Well done MW!