1) Layoffs and restructuring
2) Send jobs to overseas and to contractors
3) closed the research lab
4) sold QP building
5) shutdown Norman wells
6) pushing to complete all major projects before 2027 end
........
Please continue if anything else needs to be added. I think all this is an indication of selling upstream asset. what's your thoughts on this?
8 replies (most recent on top)
@OP
I would add:
- foster closer relationship with Suncor (future buyer ?) by partnering on EBRT.
- close shittiest Cold Lake plant (Leming)
@b6 what dispensary do you get your product from? Might want to get a lower dose.
Exxon is happy to take the cash in the short term to funnel towards ventures in other parts of the world but has not demonstrated any interest in investing in Canada in a meaningful way. They are in harvest mode.
I’d expect they’ll be even happier to take the payout from an asset sale to fund other ventures overseas.
@b6
Actually the oil sand reserves are large and keep on producing no matter what. Aspen would never have received funding if the long term prospects were not strong and they will keep on producing for decades, Cold Lake is a prime example. And right now, that production output is extraordinary profit. Venezuela, no one really knows because Trump is on his way out and the law and order situation there is very very questionable. There are also questions if Venezuela is even getting paid for its oil and strikes on these assets frequently become a problem shutting them down after very large investments making them highly risky proposition.
Anyone who thinks Venezuela will be an easier place to do business in... lol
EM is looking into Venezuela. If that venture bears fruit then Canadian heavy oil becomes less favourable since it is produced in a heavily regulated country, higher risk of liability, and more expensive to produce.
Examples:
- Downstream asset sales in the last 10 years (Europe, California, Australia), trends show EM wants more margin (obviously) and less restrictions.
- The unfortunate porting of HC10 jobs for cheap labour albeit less quality
Obviously this is just an opinion. I’m not an expert in any means. Always be prepared for the next wave.
Using the risk matrix, there is an A probability. The consequence will depend on your own personal situation. You can derive your own FIN impact on that and mitigate accordingly relative to your personal position.
@b6: JW... is that you?!?
We wouldn’t be on track to invest billions at Cold Lake, Aspen, Kearl if we were planning a sale. Cold Lake and Kearl are cash flow cows for the corporation right now. Nobody knows the future (10+ years) but right now it makes no sense to sell the upstream. Exxon thrives on diversification, that includes diversification on the regulatory and legal stability front.
For those who stick around, the worst is likely behind us.