All Upstream BUs and the service departments are being whacked with RAEs and ROMs. Are the Downstream and Midstream operations the new corporate stars, and exempt for the cost cutting axe ?
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The "Crown Jewels", the Sabine and Bridgeline systems were big liabilities. During the Enron Era of gas trading yes 1 BCF of gas moved through the Henry Hub, but there was literally no more business. The pipeline had value to Enlink because they had existing pipeline that they could then interconnect and increase their flexibility and allow them to move more gas through the Henry Hub. Much of the pipeline needed to be replaced with new seamless piping, and that was going to be a major cost for not much of a return. Chevron Pipeline is in a good place now. Whatever cuts happen will be small and most have already been made. The assets that are left support strategic Chevron assets such as Tubular Bells and Jack St Malo, and the ChevronPhillips Chemical Co, (which is a big money maker, feedstocks and fuel gas being so cheap.)
Pretty soon, there won't be anything left but diversity conscious butt kissing non-confrontational ass clowns in full PP&E!
CVX was constantly trimming Downstream during 2005 - 2010, mostly the "Texaco heritage" USA and International marketing assets. The big Downstream ROM was in 2010, resulting something like a 2,000 reduction in DS people . Earlier this year CVX sold their 50% of Caltex Australia, which is why Intnl. DS booked such a big 2Q 2015 profit.
The Hawaii refinery and marketing is up for sale, but that's a relatively small business, and won't bring in much cash. Not much other DS assets to shed, unless San Ramon is absolutely desperate for cash, then it's time to put the sacred "Chevron heritage" assets (Richmond & El Segundo refineries, California marketing) and possibly the Asian DS businesses up for sale.
The "last major asset sold in December (2014)" referred to by Anon 132077, was generally regarded as the crown jewel of CPL, though it's full capability and potential was never realized by Chevron because of poor management decisions, unrealistic funding for Operations, and a host of other problems. As if to add insult to injury, the asset was further impaired, literally months prior to it's sale, when two (sizeable) lawsuits were levied against it by two of the Shippers on that system (the root of which went back to questionable CPL management decisions/actions). The sale, however, proceeded, with the buyer, Oneok Partners, Tulsa Ok, assuming the burden of one of those suits. Since taking control of the asset, Oneok has increased capacity utilization by 20% over that which Chevron had managed, and is supplanting the operating system software (incredibly cumbersome, inordinately complex, inflexible, ridiculously expensive) with which Chevron had shackled the system, with another, used widely throughout the industry offering vastly improved functionality, efficiency, etc. Just another example of what smart, efficient, focused leadership, as opposed to Chevron, can accomplish. (As though that point hasn't already become crystal clear.)
CPL (pipeline company) divested about 63% of their assets during 2014, with the last major asset sold in December that year. The employees working at field facilities went with the buyers of those assets. The support groups at the Bellaire, TX also went through a ROM in January this year. Half the personnel laid off went in April with the remainder (already named) will go in October. As you now know, the Midstream BU was affected drastically. Nearly half the employees of CPL have already gone and a few more will go in October.
Wouldn't be shocked if CPL was divested. Downstream is constantly cutting costs and had a ROM a couple of years ago.