What do we know?
10 replies (most recent on top)
Management mentioned it during our townhall. The size and scope of project beta is dependent on the price environment we see over the next 6-9 months. Regardless of peoples opinion one way or another on project alpha, ESP and BU management, it seems like standard business conceptually. Low prices require organizational management and they are trying to hold on to a portion of the current organization depending on what prices do over the next few months.
mwi You hit the bullseye. ETC is going 100% billable and contract labor(SME's) will be added for marginal work load. I work in ETC. and the vast majority of us are expendable overhead. The spending cuts leaves no billable cash for us. If we were actually productive you may argue that carrying overhead is plausible. But the reality is a a culture of overspending with no or bad results. NOJV and Co-op is also a slam dunk. We will do 85% of unconventionals with this model. Chevron organization makes it near impossible to get efficiency to the level of the independents. Midcon is already following this model with 60-70% of all work in a NOJV today.
As shitty as we are at managing projects, investors should be thrilled that we are going the NOJV route. Leave the decision making and execution to those that are actually good at it.
ETC is toast 2nd half of this year. CVX will contract that talent, such as it is, on an as-needed basis. In terms of presently uncommitted ventures, we are out of the exploration business for awhile. We are retooling as a strictly AD venture leaning heavily on NOJVs ans Co-OPs. Don't tell investors that.
The service companies have been cut to a bone already. We need more cuts from deadwood in upstream.
What is happening now to CNAEP and the BU's is called the ESP, not Project Beta. Project Beta will be round 2 of the same groups that went through Alpha. Not necessarily what's happening in Spring.
Depends on the Business Unit. Each has its own schedule. CNAEP starts the process in April. I've heard CITC is one of several to start layoffs in the Fall 2016. If you haven't heard anything definitive yet, it's because the BU or company groups are still making adjustments and having the employees wait and squirm for their own enjoyment. Sadistic bastards, this management of ours.
op stfu go away. that's what we know
Haha besides the fact that its happening, I know nothing. That's why I put it on here asking for info. But thanks for your productive post. I hope you get cut.
You tell us twerp.