CVX bet big and put all their chips down on LNG and the emerging Asian markets.. This could have worked if the bottom hadn't fall out of oil... Companies that do not take risks are doomed to fail...Companies that do not recognize risk are also doomed to fail....
Next time when oil prices are high again (it will happen) and CVX decides to go all-in, and someone asks "What happens the bottom falls out of oil?"..lets hope they aren't laughed out of the room again..
Very true, 1wqg, but two other things must also happen to "right the ship". 1- Oil must consistently stay over $57 then go above $62 by Dec 2018. 2- Chevron must end the current dividend policy of continuing its Dividend Aristocrat status of increasing the dividend each year. The dividend yield should not be allowed to go up any further than it has already.
Chevron has not righted the ship until less mistakes are being made going forward.
It isn't just the cost of getting the operations up and run ... include the delays in production, lost revenue from the original plan, etc. So many bad decisions and consistent failures in execution and decision making
Funny all the predictions on this site that were so obviously ridiculous - oil would be dropping to $20/bbl, Gorgon would never start-up, Chevron will be bankrupt soon, multiple ROMs that never happened, etc. I have worked for several companies, Chevron has its issue as does any company but in general it's much better than most.
Again, Chevron will be fine, regardless of how sad you will be. Hope you folks take a screen shot of this so we can discuss for years to come.
Between Gorgon and Wheatstone there is likely a 50B budget overrun, particularly when you consider schedule impacts. The real question going forward is can you break even at current gas prices (BE rumored to be >$9+ per MMSCF for Gorgon against a current HH price of <$3 per MMSCF), I know the far east market is different than the US, but still ...
Ok then, kss. Let me rephrase the question. Where would we be if we hadn't lost over $25B at Gorgon/Wheatstone?
They didn't "lose" $50b, Gorgon producing 400K/d. Plus 50% of $50b is "only" $25b. Get your facts right
More like 15-20k laid off if you include the contractors. Those people don't get severance pay or benefits.
Bet we wouldn't haved layed 10,000 souls off. Thanks for the reply George K.
"You miss 100% of the shots you don't take" -Michael Scott