I have been lurking around on this forum, and I have noticed how Chevron seems to be the most active area with tons of chatter around the layoffs. I work for BP so I am a little confused as to what is the major difference people on BP topic aren't talking about layoffs. BP is hurting just as much with low prices (and the DWH penalty). Similar with other majors including Shell (Exxon seems to be in a different tier due to their regular trimming even during non bust periods). Is it because people in Chevron have had pretty awesome ride and now suddenly it looks like the worst place to be in? FYI, GOM BU in BP will have another round in next few months as folks have been told. And when they spun off their onshore business, there were 2-3 re-orgs at different levels and appears as if they ended up laying off close to 40% folks in that BU. These numbers are just as big as Chevron, if not bigger. Help me understand why you folks are the most active?
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First of all, if you want to create a divide, "Chevron" people screwed up the marcellus shale play, not "AMBU" people. This is a fact. Chevron bought Atlas and the CVX management thought they could use the same processes that they used to develop an offshore well as they could to drill an unconventional, which immediately stifled innovation.
Fast forward 3 years, AMBU is adopting a "manufacturing mindset", meaning that well pad design is based on a few proven patterns. Production is at an all time high. It took a while for Chevron to learn from others, and only done so by adopting a laggard strategy (which JW admits in the Forbes article).
The majors let the small operators "figure it out" in Marcellus, hoping to capitalize on the innovations of others. They are the students, not the teachers. Who do you think will be the leaders in NA Unconventionals for the foreseeable future?
AMBU stands for "Appalachian Michigan Business Unit.". It was created when Chevron bought Atlas Energy for the shale gas.
This is OP.
Thanks Anonymous 130571. The capex numbers you mentioned are really huge, and I guess the frustration of employees therefore may be warranted. BTW, what is AMBU anyway? I guess BP's leadership has been very clear on prices and managing expectations. Ever since the drop in prices, we have been constantly reminded "lower for longer". That difference in perspective also seems to be one big difference between the two companies. Regardless, I hope all of us ride this one safely till the recovery.
— Man Overboard Stevie Wonder saw the writing on the board, yet very few were/are smart/brave enough to leave! I stayed. I am trying to figure that out. Abusive managers, unqualified co-workers, zero planning, zero work execution, horrible results and here I am. Lesson learned! Congratulations on getting out of Dante's Inferno I am sure you hit all 9 of Dante's circles of hell here at Chevron lol. I am good at the Chevron acronyms, but what the hell is an AMBU? Sounds like the name of a feminine hygiene product. Don't get a regular douche when you can get an AMBU.
I left BP a few yrs back and left to come to Chevron. If you read everything here it's that the market highlighted extreme incompetent managers. I had some managers at BP that could not tie their shows. At Chevron they can't find their shows because they don't know what they are. You would think you have the Warren Buffuts of the world at BP if you came here. I had one person I know at BP get RIF'd and it sucked. But he understood why and it was a fair process in his opinion. Chevron's RIF will be totally screwed up with the old buddy system in place. Our financials will be highlighted with huge investments and little revenue. We are way to leveraged for 50 dollar oil. Why we are so leverage are those guys that can't find there shoes made the decisions!
Very well said, Anonymous 130571. I quit Chevron a year ago when the oil price was still $100 per barrel for all of the reasons you have articulated in your post. The writing was all over the wall, glaring back at me every single day. Chevron has been a sinking ship in recent years, and it is also clear that "getting results the right way, Chevron Way, etc" is all just lip service. I jumped ship and have never been happier!
Chevron's cash position is fundamentally much worse than other majors. To put it in BP perspective, the cost overruns at Gorgon approach the total cost of the BP "incident". Throw in losses at Wheatstone & Angola LNG, Big Foot delays, grim exploration results, and a hold on new offshore E&P wells and the full magnitude of capex pressure becomes apparent. We also have a large number of employees, many early career, that are coming to grip with the reality that the culture of Chevron, manifest in the core values espoused by the "Chevron Way" and the Tenets of Operation, is a facade. We thought our company was different. We were wrong. We understand that the capex crisis was upon us long before the oil price drop and know that our management will blame the huge loss in shareholder value on the price drop when in fact it is more a result of inept management and strategic error that is merely exacerbated by the current spot price. We also understand that our company's future is at risk because our debt and cash flow crisis will impair our future growth prospects. We have lost confidence in the stragic vision, judgement and integrity of our leadership and we are saddened by the steady
stream of our talented colleagues leaving the building for good because we as a company failed to execute according to plan. $100 oil is not the new $20 and it was utterly foolish to say so in light of historical market conditions and even more foolish to place the MCP bets we did on the basis of such a belief. You would think a finance guy would understand this. I bet the Saudis did.
A lot of processes were put in place to prevent the minions from causing train wrecks, some were needed, while others were overkill. What we have now are several train wrecks at the same time, the wrong time. Some feel like they have been jumping through hoops for the clown's entertainment.
Everyone is getting tired of drinking the Kool-Aid. It doesn't taste good anymore.
because AMBU people are awesome
Because we were told a lie, and things were swept under the carpet that are getting exposed now, and it's uglier than anyone in Chevron could ever imagine.
Please go lurk somewhere else!