Supposedly HR is working with all country managers on a drastic reduction in expat benefits - housing, goods, travel, schools, etc. The idea is that with so much competition for so few slots, the benefits are way more generous than required. Millennials and foreign nationals will go overseas just for the experience and adventure, so minimal benefits are needed.
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Expats do very little work and contribute a mere minuscule of effort with generally little to no talent, to the organization, oftentimes only in it for themselves, to make a quick buck then leave. It would only make sense to cut the generous benefits for these pathetic overpaid parasites on the company.
Sour grapes cake eaters. I did my time abroad and earned every penny of my 20 years as an expat in Africa, and Asia Pacific. Not all you geniuses were capable or competent for the assignments, not our fault, so quit sniveling and trying to bring us down as the fact is we carried many of you.
I figure most expats won't miss extra benefits at this stage. They are all cashed up!
With the $8 billion renewables investment we plan within the next few planning cycles, the entire exploration budget disappears and then some!
It appears 2022 will be a key year for exploration. If new impact discoveries don’t occur by July, most of the budget will be redirected to renewables.
Noble cleaned house of all their oil and gas finders before the Chevron acquisition to make the cash flow look better. I knew Noble was doomed when they cut their exploration staff to the absolute bone. When you drill dry holes and have a terrible acquisition strategy, it is only a matter of time. Learn from Noble's mistakes or suffer the same fate.
+1
Exploration has been ineffective in making a compelling business case for investment to management. They are too political. And the case they have succeeded in making has mostly produced dry holes! New blood will be needed, either from Noble or outside, to change the dynamic and improve performance.
@3lam I guess I f!cked up because I trained my local replacement and they did a great job. Sorry that you suck as a mentor.
Exxon's 2020 report indicates they spent $1.2B and found 950 million barrels. Unit finding cost $1.3/bboe.
As an expat prior to Chevron, the expectation was you contributed to development of local staff so that the BU could become independent from HQ for its organisational capability. CVX expats take the pi-s, do nothing to develop the local staff and laugh all the way to the bank and their next posting. Not sad to see the gravy train come to a halt if this rumour is true.
@2oty: Chevron exploration got hit with a one-two punch: 1) Putting LS in charge was purely D&I, nobody on the ELT, or their advisors, has ever been involved in a significant discovery. Mostly young high pots now with much bigger egos than resumes. 2) All the track record oil and gas finders left or retired last year. Couple these with Exploration's "new" strategy to win by farming into other companies' acreage, and you can expect these reserves numbers to stay low and finding cost to stay high for the foreseeable future. (Historically Chevron has been much more successful buying reserves rather than finding them.) Neither of these really matter since MW believes that Tengiz-Australia-Permian will take him to retirement, eventually all the exploration money will be funneled into renewables.
expats in Asia/Australia living a life of abundance off CVX
Expats rock and actually deserve more! They are the epitome of a true company committed worker. They sacrifice all in order to keep our beloved company performing at its highest! Because of them we are the company most admired for its people, products and commitment to the environment!
According to the 2020 annual report, we spent $1.5 billion on exploration and found a measly 129 million barrels, for a unit finding cost of around $11/barrel. Abysmal. In the good old days we averaged around $1-2/bbl so performance has degraded around 90%.
It is beginning to sound like Chevron is entering the die-off phase where the company just rides the decline curve down. Exploration dies and cost cutting becomes the most important goal. Hopefully higher prices will bale out the company.
You are confusing the HR claims about salary with expat benefits. EB are not benchmarked. The industry pokes fun at Chevron for being way higher than others. Word has gotten back to management.
Expats to US get benefits too.
EB didn’t have 20 years experience when she ran all of TCO! Those are just guidelines. Plenty of millenials overseas for quite some time.
Expat "benefits" basically fall into xx categories: Goods and Services (to offset the costs in the host country vs the US), Housing (same rational as G&S) and post premium. All of these are benchmarked against industry competitors as well as against comparable costs in the US. They are routinely reviewed and adjusted as market conditions dictate.
While Millennials and foreign nationals may be keenly interested in overseas assignments, their experience may not match the requirements of the host country. For example, at one point, Nigeria required a minimum 20 years experience for petrotechs, reasoning that anything less could be found locally.
Expats should form a Union! We don’t have to take this reduction in pay!!
Target is early 2022. Expats may be offered to stay under the new terms, post at spring PDC, repatriate, or retire. Some expat positions will be eliminated as well.
any word on timing or if the premium will be cut?
We really don’t need expats in Africa after training locals for more than 50 years.
Where will we need expats in the future?
Israel
Angola
Nigeria
Bangladesh
All in much fewer numbers
Fake news….again! (Yawn)
Angola and Kazakhstan premiums are ridiculous.
Good, they can start with slashing benefits for all the overpaid expats in the U.S.
For the last several years expat assignments were only going to the high pots (or family members), so the average employee wasn't benefiting from these anyways. Also, with Thailand, UK, and Indonesia out (and Australia eschewing expats), there aren't many expat assignments available anyways, and certainly none that are 'attractive'. This move is just another indication of the gradual decline of Chevron's allure as an employer. Expect more reductions in 401(k) and pension benefits, reductions in sick time (i.e., 'short term disability'), and those recently added 'family leave' benefits may disappear as well.
Hope they follow through with it.
Finally....
Chevrons expat benefits were way to generous to begin with.
Makes sense.