@IllabFo-2qoh, there is no CVX layoff website "stupid posts" hall of fame, except in your own twisted mind. Also, quit patting yourself on the back by nominating your own posts to an imaginary hall of fame, you self-important transparent idiot seeking self-validation because you can't get any in the real world.
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Confirmed. Layoffs coming.
@1rmy, your post is Pure Gold. Very witty. Another good one for the Chevron Corp Layoff website Hall of Fame.
Playing on the Godfather parody, JW is no Don Vito!
If mid-level Exec and BU level management can't be objective, then it's time to take Fredo on a fishing trip and Luca B to get a new neck tie! The ranks there are relatively small. You're correct @IllabFo-1rck, and those changes SHOULD be managed by competent executive control. Isn't that then is a statement regarding executive level's prowess?
Sadly, it's difficult for a BU to independently put the axe to low value processes and groups due to "Corporate standardization". BCG plays well into the Chevron Way model of non-accountability.
Millennials won't understand any of this parody, but I hope I don't wake-up with a horse's head in my bed tomorrow. In Marlon Brandon accent - "Don't take it personal, it's just business!" LOL
@1ntr, It doesn't necessarily take an outside organization to have the focus and neutrality to make the call on what is needed and what isn't. Any well organized enterprise with high standards knows how to prioritize their assets and make the right calls. The fundamental reason for bringing in the BCG consulting group is because Chevron's high and middle level Business Unit management is rife with self-preservation and maintaining power. They don't have the absolute trust of the Chevron brass in San Ramon to make the right calls.
It's a lot easier to hire hit men to do the dirty work! Ya got to be a relic like me to remember the scene in the "Godfather" movie series where Michael is in Mass while the boys are out gunning down the masses. Spin forward 4+ decades: JW plays golf at Pebble Beach while BCG makes recommendations for cuts.
The reality is that CVX is fat and needs a parring down of a ton of non-value adding BS to begin with. It takes an outside organization to have the focus and neutrality to make the call on what is needed and what isn't. It's unfortunate if you are caught up in one of those BS processes.
I concur 100% with @IllabFo-1fxl's assessment of @IllabFo-1uee's lengthy post.
Outside the normal skill of large engineering houses to rape their client, KPJV (aka FLUOR) is rife with people who worked on SGP and continue to preach a model where they were in the lead role. As a result, on FGP they believe they still have the processes to make things work. They may be closer to being correct compared to PRC's skill in PM...LOL.
Great post 1uee
It's almost impossible for a "commoner" to understand the value of 2016 reserves book additions and Wall Street's response. However, a very valid point regarding the write down of reserves elsewhere on CVX's books. Remember, just a few short years ago, JW was touting a big annual production increases ... until the oil price crash occurred.
CVX only has to come up with 50% of the $40B, but if things don't correct themselves in the MCP world, expect the final sticker price to bring CVX's contribution edging back towards that as a cost overrun. XOM will hopefully keep their fingers on the purse strings by embedding manpower into Construction, but the damage of an over-design and fabrication strategy is already done. What hasn't been documented (published anyway) is the near decade that this expansion has cost (apparently considered sunk cost)?
The biggest risk to the entire TCO enterprise is the declining reservoir pressure and not getting something in place to keep the existing processing facilities within GOR constraints!!! A fledgling project (MPP) is supposedly in Phase 2 to install multiphase booster pumps to keep inlet pressure up short term. HOWEVER, unless the CVX project front-end engineering model is tossed out the window, it has a very remote chance becoming operational prior to FGP/WPMP completion and even so, a very short life. At some point that will need to be FID funded too and the only economics will be lost production rather than increased? My sense is this is just a smoke-n-mirrors exercise to create a late-in-the-game "back-up" in hopes FGP/WPMP can get its act together. Sadly, multiphase pumps was a concept XOM lobbied for many years ago as the WPMP solution.
The single biggest thing TCO needs to resolve ASAP is whether the FGP/WPMP project is controlled by FLUOR or by TCO (CVX PRC)! The integrated construction model currently in place is a poster child for ZERO accountability and will only get worse with increased manpower numbers! Trust me... outside of the project simply being cancelled, this will have the greatest impact on the number of CVX folks that will have a job over those next 6 short years! Oh and BTW, you better be a PRC crony or you don't get to nibble on this MCP cheese.
Lastly, I'm somewhat amused by Almaty | Post ID: @IllabFo-1dod's naive optimism that "CVX won't screw this up like ABU!" GoK is undoubtedly fed-up with the time and cost it has taken to get this project to FID and they aren't sitting on Bs (even in KZTs) to contribute. CVX certainly isn't cleaver enough to toss contract extension into the fray right now.
Need FID to book reserves to counter massive PZ reserves write off due to shut in
Guys relax and don't get your panties in a wad over this. TCO-FGP is a solid investment and most likely one of the future cash cow. CVX won't screw this up like ABU.
In order of priorities now:
BCG is cleaning TCO house as we speak, some expats but locals as well (which is unheard and thanks to the new kazakh laws). House cleaned just before FGCP kicks in.
A lot of FGP jobs are hitting the PDC wire right now but also we will have many managed moves given the influx of great people from other regions.
I am in Almaty as we speak. We just collect money in TCO's behalf and hold the legal entity. Can't complain :)
@mto, I was also scratching my head about that Tengiz field development news. $40B is not chump change to spend over a short 6-year timeframe. Let's hope Chevron doesn't continue with its "teething pains" or else we are toast. Oh, and those 5 North America jobs you saw posted, count on two being pulled and the others reserved for the three stooges.
The real problem is the expiration of the contract with GOK. GOK has everyone by the nuts. Still possible for deal to collapse, but FID allows reserve booking this year. This gives appearance of progress to shareholders. The real deal is contract extension, the investment community is a pack of idiots.
Something is not right about the Kazakhstan announcement. 40 billion dollars to invest for Tengiz field development to complete by 2022 - 6 short years away. Where will this money come from? My thought is that Kazakhstan government gave an ultimatum to develop this field or lose it to other oil companies to do. Also, I checked out Chevron website yesterday and there are only 5 open job postings for all of North America. There will be a lot of crying chevroids after the next round or two of layoffs.
...and more Layoffs!!!