Has anyone heard any specifics on how the company is going to reach it 1 billion in savings in operating costs? The company has stated that they are going to reduce cost by 1 billion by 2016. I understand some of that savings will come from deflationary costs (e.g. Renegiotiate contracts for lower costs because of low market conditions, salary freeze), but that will only go so far. Has anyone heard what else is in the pipeline for cost reduction to reach this 1 billion goal?
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Not missing the employee engagement (or lack of).
Cut back on the free cokes and coffee was a popular suggestion on the company web page. Good luck with that!
Exclusive: ConocoPhillips to launch U.S. asset sales - sources
Not enough cash in the bank to pay for the layoffs... and so the noted asset sales. Cash the severance checks quickly.
http://finance.yahoo.com/news/exclusive-conocophillips-launch-u-asset-150447272.html
The quickest method to reduce operating costs is a reduction in operations; but a reduction in operations is not without costs. Shutting down a rig is not without cost. Laying off an employee is not without cost.
Expect 1 billion in operating costs reduction with an associated 5-15 billion write off.
You.