Right at the height of the boom Chevron's leadership went on an unbelievable spending spree unlike it's peers. To put this in perspective, Chevron Market cap is around 190 Billion. They spent around 100 billion since 2010. And over the last decade PRODUCTION OUTPUT HAS NOT GROWN. ROE will be negative and Chevron's cash flow is negative. 10 plus billion in the next year. Chevron's F&D cost is an astronomical 32 bucks a barrel today! Can you have a more f***ed up major capital projects outcome? The Bigfoot platform alone costs over $5BB and now won't be ready for who knows how long. COST THROUGH THE ROOF....WAIT WAIT WAIT Gorgan originally budgeted at a $37BB, now looks to cost an astonishing $60BB plus. Royal Dutch Shell (Partner) is adamant that production will not start until 2016 best cas, although Chevron still is aiming for 2015 production. WAIT WAIT WAIT Angola originally budgeted at $4-5BB, will cost 14BB. Design flaws and delays have been hallmarks here just like everything else. The plant opened in 2013, but shipments have been only 25% capacity because the plant will needs Retrofitted as it is broke. WAIT WAIT WAIT Chevron opens a Shale Gas BU and says 40% of Barrel Equivalent will be from unconventionals by 2018. Chevron is dead last on all benchmarking in the Marcellus. The average big independent drills 350 wells a year Chevron drills 50 with 10 X the overhead. Nobody sees it yet but Chevron is on its knees. The shareholders will demand a change in leadership.
Anonymous114994