WTI hit $130/bbl for a brief period today.
I think the mass XOM exodus will start soon, very soon. This time it will be the middle of the pack, general population - those who have just kept their heads low and mouths shut all this time.
“$9B cost cutting” - what do you think? We don’t understand what that means!! Our time is just around the corner.
@6beb+1fDGQULa
These are all things of the past. Back then Exxon was ruthless but not suic_idal. Today putting back Humpty Dumpty by just throwing money at it is not a viable option anymore.
EM is now absolutely unable to identify “talent”. If they bring in contractors, they will choose the STCs that were forced to retire in February 2021. More PowerPoint jockeys, which are now considered to be the salt of the earth.
Our management has lost it.
If XOM needs talent, XOM will do what it did in the past. 1) Hire annuitants who do not need training and send them to locations like Guyana and Brazil to train local staff (pay is about $2500 per day plus travel...plus annuitants not not need medical or retirement and they know the system and usually trained the managers; 2) sell fields and re-deploy a FEW people; 3) more contractors; 4) BTC for low value /low risk /repetitive work. If attrition is unbearable, expect "golden carrots" by 1) expanded use of RSU to lower levels and lower quintiles 2) deferred compensation in cash (back in the 80s we got huge raises (I got a 37% raise, but inflation was over 10%) plus 30% cash bonus paid 10% immediately and 10% each year for next 2 years; 3) company cars were a big perk in past...but RSU is a better form of comp today.
BTC is only useful to help international operations, BTC is not helpful for Permian. Independents are already looking for drilling engineers, Frac engineers, facility engineers, gas and oil traders. The sweet spot is 8 to 15 years experience at salaries that have 250k base plus 100% bonus potential. Independents have a suprisingly older staff (older than XOM) and they will see retirements. Independents do not recruit on campus, they buy talent that is already trained by IOC
@1rxy+1fDGQULa
Is DW a diversity promotee? What about the rest of the senior management?
Imagine thinking that Exxon's current issues are due to diversity - thats the mindset of an NSI if ever I saw it.
And now some of the departments will spend the money and organizing big face to face meeting and flying many people into the location...big several days meeting is waste of time and very unproductive and I believe management didn't see it that way...all the managers only mixing with their own kind and don't take the opportunity to interact with other employees...believe they will never learn their lesson..
It's just another bo-m bust cycle.
We are on the bo-m part of the cycle. I've seen several cycles in my 35 year career as an engineer in upstream O&G .
Those who have core O&G skills will have opportunities outside EM (if that is want you want) at salaries that will make you happy. Get off your b t and go do it.
This time don't mess it up. Save, save and save while the getting is good.
Good luck to all!!
Oil and gas booms are when we have traditionally lost upstream professionals. That is when there is demand for people who have acquired petroleum engineering and petroleum geology skills. These skills are not taught in colleges very well so the skills are only acquired in large IOC. And Actual Experience matters. Mid size companies and small companies then buy these skills by outbidding XOM / Shell / CVX for talent. I expect more losses and people will jump ship for 30 to 50% pay raises/bonuses/stock. XOM always seems to be behind the demand curve (and the price curve) when activity picks up, because its salary surveys look backwards- not forwards
I hope lots of people jump to other companies in this bo-m.
NRE waiting to achieve RE. Then try make it few more to reduce that 5% per year penalty for retirement before 60.
EM will try to cover any shortage of personnel in USA by ramping up BTC.
BTC pay is lower than most Indian engineering companies and world wide demand for Indians to go expat might combine to cause big Exxodus from BTC.
Meanwhile EM will cut expenses by an additional $3 Billion so I expect raises not to keep pace with inflation.
EM seems like a rowboat headed towards a waterfall.
Bo-m is the best time to jump to a new spot. Reset your salary high after being denied raises for so many years at your current company. If you've been somewhere for more than 5 years and haven't been raised each year you are behind....
Definitely seeing employees being replaced with contractors in Europe.
I agree with OP. Exxodus will increase now. Many people who have good skills but been treated poorly will take the next opportunity and run. EM has already made its bed for the next two years and can't go back now. Look for a rollover of employees for contractors. Part of winning.
Company making tons of money and we still dont have a trashcan in our desk. They are still hiring a lot of people in BTC until the a blowout happens and realize that cutting corners aint worth it. wait for it.
OP had a hard day on the bottle 🤣
Wait, I don't understand why there will me mass exxodus when more than ever, XOM will need more people and might be generous compensation-wise. I mean, it's not time to leave when the job market is in favor of oil and gas (at least for now). When this crisis ends, that's when oil PLUNGES again and that's the time for exxodus.
LNG will be big.
It will be interesting. My guess is the jobs will be in Permian in Midland and GOM in Houston. If you have skills for either type of work you are golden. Not so sure natty gas will be as hot or international.