Chevron announced this morning that E&P will be cut 15% from 2016 levels. Affected areas are Kazakhstan, Australia and the Permian basin. Cuts are necessary due to continued market pressure. You know what will happen next. Good luck, you are going to need it.
3 replies (most recent on top)
http://www.thejakartapost.com/news/2016/12/09/government-to-mediate-chevron-and-labor-union-dispute.html
@dxj, the 15% announced cut in the budget is conservative, as to not spook the already spooked employees. We'll see if that percentage doesn't creep up to 20%. I won't expect massive layoffs like we went through in 2015 and 2016, but there will a few ROMs that will take place. In a ROM, employees get cut just for the sake of trimming headcount. Beware and don't go pissing off your boss or other prick with a higher pay grade that yours.
According to UPI, these will not be "affected areas," but just announced planned spending. 10% of 2017 spending plans will go to the Permian, 35% toward Australia, and 15% to Kazakhstan. I don't know if these are budget increases, steady, or reductions, though.
You're correct in the 15% reduction in budget from 2016 levels. Again, I don't know if this reduction will force another round of layoffs. Gorgon and some of the other projects are finishing up which may defer or avoid future layoffs. Previously planned SASBU reorganization has continued with layoffs.
http://www.upi.com/Business_News/Energy-Industry/2016/12/08/Chevron-outlines-cut-in-exploration-and-production-spending/4971481193808/?spt=rln&or=3