OK, so the news about budget cuts are official now - I'll be 25% less and you can expect that this results in 12.5% cut in headcount. The other 12.5% will come from less capital spent, so we have the numbers. I am suspecting that since we'll have less projects, operations will be hit the hardest, regardless of how aligned you are are. I am not expecting big cuts in other areas. This is just my prediction.
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GOMBU will not drill any new wells next year. Still waiting on news of asset sale. DWEP is another story. It will be interesting to see whether they can keep up their activity level. Reducing drillships from 6 to 5 will immediately save $400 MM/yr. Of course that also means not as many people needed to support operations (drilling, completion, subsea engineers, HES, logistics, support staff, etc.). However, with Big Foot being delayed over a year there is a good chance DWEP will drill at least one BF well in 2016 to keep the appraisal project on track.
Gorgon, Wheatstone, ALNG, EGTL, BigFoot started on O'Reilly's watch as CEO; dont just blame Watson. In addition, the politically correct non-exec directors (most with no oil industry exoerience) should also take a long, hard look at their performance as supposed guardians of shareholders interests.
767, the c-suite is way above 26
The last two posts are precious. I snapped a rib laughing do hard. I still can't quit.
Ah, good old George! More chins than a Chinese phone book…
You guys still whining (buuuuurp)? Hey, if you are hungry, come join me for a buffet or six, my treat. Now if you will excuse me, I need to go water my yard.
Y'all can blame the c-suite but the PSG-26 people you are vilifying had very little to do with the decisions that got us into this position. Bash to PSG 29+ people but the general manageme folks were doing no different than everyone else...executing tactics to fulfill strategic objectives set by others. There are a select few people who thought overlapping so many mega projects would be a good idea. Many objected to it but a Finance-biased CEO shot for the moon and missed. It would've been phenomenal if we hit it though and, frankly, I believe it was worth the risk. We wouldn't have ended up with these huge layoffs but also wouldn't have grown to this size in the first place.
Will we see any upper management gone for a change? They created the mess.
I read in my paper 7,000 jobs will be gone next round ,mostly in Australia,,,sorry mate,,, this is what Watson said,,chevron layoffs coming soon to your area round 2..
If are good at kissing ass and secured yourself a 1 or 2 plusplus ranking recently, you can be damn sure you'll keep your job or even get a promotion.
The number of new wells drilled over the next 3 yrs will be a small fraction of those drilled in 2015. G&G ops, D&C is going to take big hit on the upstream side of things. Especially GOMBU. As assets get sold, same for O&M.
Why would ops be hit by cuts to capex? The cuts are going to hit PRC and other capital project related groups (including drilling) very hard. As projects finish, employees on those project teams aren't going to have a place to go.
Good luck to all - we will need it in 2016