WELLS has 800-1000 EMPT without fail, year-after-year, count on it. And for what? They two major drilling projects in Guyana and Permian, and smidgens here and there.
Explain please.
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All I can say is I do not see the wells organization putting in long hours in Midland. They consistently arrive at the office after me and leave before me.
Funny I always thought of Wells as a money "spending" organization. Guess I have been wrong for so long.
24/7/365 jobs require alot of people. Each DW rig takes 8 to 12 engineers to keep running 24/7/365. Each land rig takes a several on 24/7/365 basis. No work from home. At best Work from Permian or Work from Guyana.
A well is a commodity. Years ago a significant well required a super majors expertise and technology. Now all of the super majors expertise and technology has really just become a commodity during the last two decades. Most of Wells is just filling in paper, making PowerPoints, and checking off the boxes on various forms. The Houston center is pretty much just dead weight reporting and policing what people are actually doing of value in the field. Eventually the dead weight will be jettisoned by the Corp and the Wells good old boys and gals will be PADPd for what the organization really is … something that could be contracted out completely to the service companies of the world and run by service company project managers. Need oil prices to come down and then perhaps Dallas will look under this rock and realize the waste and report on this as the next synergy opportunity in a year or two from now.
Haven’t you figured it out yet?? How many aggies does it take to drill a well?
A few ideas….
Like any operations type organization the numbers will be slightly inflated due to the 24x7x365 nature of the work. It isn’t an office job that runs 8-5 on M-F, so you need a bit more staff in the base case.
Wells is the epitome of “good ol boys” organizations. They’re not going to cut their own.
There are a lot of headcount in Houston that are dead weight. Are all of the principles really adding value that aligns with their salary treatment? Is the digital team actually delivering value or just building endless dashboards that aren’t actually necessary because that’s the flavor of the decade for the LT?
Wells is a money making organization (for now) so they can slip under the headcount radar.
I could go on.