Anyone know the near future for drilling engrs? Seems with the current oil price the slowdown will be dramatic on staff and DSMs. Anyone?
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Sooooo you will find this interesting. Chevron Commissioned a business case study on SC. It looked at cost and efficiency and at the end that the contractor was effective in getting safe work done (competing the task). This was a very good deep dive into our process. They worked with a contractor who was just beginning the navigation side of the Chevron process. They had a person inside the SC team itself and then interviews with frontline and middle management and workers completing the task. It had to be by far the most spot on and damming report I have seen in my working career. 3 Bu's in N. America were in scope for the study that I saw and these studies were mutually exclusive. Meaning they did not share any information between groups nor discuss anything with management until each BU had a final report. What was amazing is THEY READ ALMOST EXACTLY THE SAME. Field management knowing the contractors are non getting the job done, cost overruns and complaining about the SC system not having transparency or a sense of urgency. The review of CHESM was scathing. Stating the process was "disconnected" to the real world work. The SC group did not understand the work and had a hard time understanding the needs of the field. Were not supportive but dismissive and many were expats who had a language barrier and no understanding of modern purchasing!!!!!! It suggested because of the major lack of skills Chevron require that anyone in SC have a certification (CPPM) in English. It stated this would ensure basic understanding of SC and basic English communication skills. The contractors all know there is a approved list and said they think this may cause performance problems (Never them, other contractors of course) in that once your on the list it seems you never get off. Make a major error, have HES issues, questionable finances, it does not matter as they all get called back for more work. My favorite part of this study and it was the constant theme in the 3 reports was of Chevron creating a cloistered, combative and out of touch SC system because the customers (Chevron functions in the field using the contractors) were targeted and, made an example out of by, not just supply chain, but the entire management structure because it is better to be bad than to look bad???????????????????????????????????????????????????????? I can go on and on but it was all there to read. So what did you think of the report GOM? Oh, yea, that's right, it was dismissed and called out of touch and not reflective of how we do business at Chevron. If you are reading this from Exxon, Total, Shell I know you say BULLSHIT! But everyone here at Chevron will nod there head and say yes this is all true and then some.
Rig 68 still has projects for 5 more wells maybe more. The big deal would be at least for us, is to have some control in our program other than SCM's total rule,
Sorry for last post typing to fast.
Rig 68 still has projects for 5 more wells maybe more. The big deal would be at least for us is to some say in our program other than SCM total rule
The future for Drilling Engineers at Chevron is bleak. D&C is reaping what they sowed. For years they have been jacking up costs for new wells and treating Asset Development as a check book. They made few attempts to get costs down and every time they were questioned, D&C would flash their safety card to avoid having to change. Welcome to the real world. Asset Development has no money because their projects are now not economical. What is the point? D&C should be justifying their jobs based upon what they save outside of safety. Safety is a given. Put those HiPot drilling engineers in Asset Development and lets see what happens.
David had no true authority over the BU's and often times they would just ignore him. With the massive cuts coming, he now has much more authority, as they are looking to him to lead. I still see a big well program at MCBU. AMBU's well program for next year is very small. I looked though the org and found the D&C manager at AMBU. They have a ton of drilling engineers for a few rigs and a ton of completions engineers for one completion/frac crew. I know you don't need over 20 drilling engineers and over 15 completions engineers up there????? And what was stated, Chevron is not going to push for new play development with such low commodity costs even if they were not cash poor. So you can't shuffle people around anymore. There are not jobs to shuffle to. Go to outlook and look at the huge bloat! I was quite shocked. The same thing with MCBU, but with 350 planned wells you need a staff.....but even there you need a 50% cut in the Chevron world...meaning Chevrons always bigger than needed.. In the real world for the most part, the independents use a centralized corporate staff with a handful for the entire operations....
Not only no cash, price of oil does not justify any new drilling.
were still working
Can't drill when you have no cash to allocate to new projects so does this answer you question?
Well David your turn to speak, but really he has little real authority
Question seconded. Some BU's have lost have their rigs or more. The green badge DSM's leave a buffer for the CVX ones - they'll go first I'd think. But I haven't heard of anyone in drilling at the Houston offices being affected by this first round of layoffs. Only place was AMBU. Has anyone heard otherwise? The GOMBU or DWEP folks?