When you realize you can no longer grow, and in fact poised for declines (hellllo non-existent reserves) the only move to increase cost cuts faster than you’re declining. It gives investors the sense of increased margins, while structurally everything is the same. Since we have no ability to grow production, snip snip snip.
This reorg is the death rattle my friends. It isn’t modernizing or streamlining, it’s the recognition that we’ve begun our inevitable structural decline.
Chevron is living in the previous century. It’s easier to do layoffs and outsourcing than it is to actually evolve. Chevron as we know it will phase out with the last Boomer.
Sure, production today is. But what’s the road map look like ahead? No growth. If Hess falls through, watch the desperation ensue
But production is at an all time high and reserves are the same 11 bboe they have been for a long time.
Yes that is clear, when investors see production declining but margins stable what will be the reaction?
get out while you can? Or this can go on for a ver long time?