Thread regarding Chevron Corp. layoffs

I hope CVX will be investing in the Mexico deep water. That's better than going to Africa or Asia to get oil. That's practically the back yard. You know Mexico has a lot of oil. Hess and XOM would be good partners to team up with. CVX or Hess would most likely be operator. Probably CVX if I had to put money on it.

@IYPWQG5-fat you are wrong again. No Kool-Aid drinker here. With all of the wisdom and insight you have, you must be an advisor to T. Boone Pickens?

See, that was just as ludicrous an assumption as you made about me being in CVX management, drinking Kool-Aid in the shade.

The type of O&G producer that CVX is transitioning to is modeled off of the approach XOM embarked on many years ago. XOM uses the metric 'employees per barrel'. Can you name a couple of facilities in the GOM operated by XOM?

Having CVX, XOM & HESS jointly bid reduces the chances of overbidding and paying too much for the offshore blocks. The "curse of the high bid" in a 'competitive' bidding process will be mitigated by this proposed trio.

@IYPWQG5-nat and @IYPWQG5-rfg.. you must be 2 of the people poster @IYPWQG5-zog is referring to as Kool-aid fans! Where you get your information that XOM won't be operator in Mexico play is certainly an interesting one? CVX is rapidly moving away from being an active O&G producer to some weird form of commodity trader. NOJV fits perfect into that model!

You also seem to think that natural decline is the leading cause of reserves shrinkage. I can't refute that with hard facts, but I'm sure all those "toxic assets" that are no longer on CVX books due to sales had a bigger impact than natural decline in 2016.

LNG projects may some day generate cash-flow, but overall, poor investments. FGP won't be operational until 2021 or 2022 (at the earliest) and is poised to be CVX's next cash-flow blackhole. Personally, I doubt the CVX will be a separate company by then and JW will be taking his dumps at his retirement home near Pebble Beach.

Refer to me as Mule, thank you. I am not a Chevron employee, nor am I a contract employee who is working for Chevron. I have been working in the oil patch, mostly contracting for Chevron since the late 90's. I just call it like I see it. Regardless of the vitriol and straw man argument, time will tell what will come to pass. I have been singing this same song nearly a year. If the general consensus was as you desire it to be, don't you think there would be a mass exodus of investors? Don't you also think that JW would have been divested with the assets?

I know you think you are more intelligent than a large number of folks and see a mirage, but unless you are clairvoyant, you sound like a flat-earther.

The "toxic assets" are the managers, but of course they won't be let go.

@-hnu, what kind of drugs are you on? Chevron cannot operate an LNG plant to save its life, and it can't execute an MCP to save the jobs of thousands of CVX employees. Are you John Watson trying to instill confidence in nervous investors? Or are you part of the management who has been drinking this Kool-Aid for years now. You're full of it.

Also, with the recent divestments and continued unloading of 'toxic' assets, and MCP's soon to bolster production, cash flow is becoming less and less of a problem. CVX is responding to the sustained low prices effectively and will continue to do so. Despite a significant number of displaced and dismayed former CVX employees, the company is actually doing well and is becoming positioned very nicely to capitalize on the price return.

Natural decline rates coupled with sustained low prices has drastically reduced the volume of proven reserves. Fat chance on XOM operating and CVX benefitting from a NOJV. Hess or CVX will be the operator. This decision is a bet that will or will not pay off in no less than 10 years. If CVX is unable to maintain or increase proven reserves over time, the outlook for the company is grim. Upstream profitability will return, in a big way, once the market comes around. The significant reduction in exploration will lead to an equally significant price hike once everything comes around. Unless you are looking to retire in 5 years or so, you should be pleased with this.

Company has no value if it does not replace reserves, gotta spend money to make it. I know some of you mini CEOs know better, but the Company can't go climb in a hole until the weather clears.