I think the individuals who have posted here are looking at the situation from the wrong angle. Our executives didn't plan on all of this happening. Nobody plans on the oil market being crashed by sources beyond our control. What we do is plan FOR it. As difficult as it may seem, when prices of oil are under 50 a barrel, we can't sustain the company the same way and survive. Our executives are making the hard choices as an effort to keep the company alive. Yes, sometimes that means good and hard working people need to be let go and yes, the execs said there would be no layoffs in 2015. That is a statement that I'm sure they had every intention to uphold. However, things change and life throws you curve-balls, especially in this industry and we all know that. If my time at Chevron has taught me anything it's that the oil business is a roller coaster ride...Please, stop complaining when the ride gets bumpy when you're the one who bought the ticket.
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If I get fired that's life. But you will see Chevron shed jobs and struggle like no other major in the next decade. This is all leaderships doing. One was the decision to spend more than half of the market cap of the company on MCP's (100 Billion) that makes a COMMODITY that we all know is volatile as hell. Second Chevron can't install a basic on land compressor station that a mom and pop construction company could install. Everyone here knows what I mean, we truly can not execute the most basic work.....Once the old dogs retired, ass kissing, do nothings, moved in positions of power over the last 10 years. They showed incompetence over and over and were moved to another part of the business over and over to infect it and lower performance. The chickens have come home to roost. This brand of ignorance has affected all of our MCP's and the new BU in the Marcellus Shale gas play. Chevron bet the mortgage on these and they will loose the house. These were not just minor blips these were monumental F up's.
Well lets compare the roller coasters. Exxon cash flow is a 1.40 in for every 1.00 out. Chevrons cash flow is 0.50 in for every 1.00 out. YES THEY BIT OFF MORE THAN THEY CAN CHEW! Did you know the SEC asked to look at Chevrons financials because of the huge leverage? And people kept investing? What Greenspan called irrational exuberance....and we all know how sub primes turned out!
Agree with Anon 134859. There was a damning article on the front page of the business section of the Wall Street Journal Tuesday August 11th basically stating that Chevron bit off more than it could chew. By the same token, the article says that Chevron has acknowledged that, "taking on numerous projects simultaneously strained its resources, again pledging to tweak the way executives decide whether to invest huge sums on complex projects that can take years before they produce oil or gas." I guess that is as close to a "mea culpa" as you will get from John Watson or his spokesperson. However, I find it satisfying that the Wall Street Journal exposed Chevron's stupidity and financial problems, and that they were able to get an acknowledgement of fault out of Chevron.
Our executives made significant strategic errors by assuming oil would stay at unsustainably high levels and trying to execute multiple MCPs of vast scale based on that incorrect assumption. The oil price drop merely accentuates the negative effects of these arrogantly short-sighted calls.
Speaking as someone who recently left Chevron...if the upcoming cuts this fall and next spring are as severe as my contacts still at Chevron and on this site indicate, this could be a great opportunity for those of you that weather the storm and survive the ROMs. The 1500 reduction isn't a big deal but if 25% is true it is a huge over-reaction and there will be some big holes in about 5 years when prices recover or costs come down to a sustainable level at then-current pricing. I wasn't in a position to roll the dice but, if you are, things could work out really well for you.
I completely agree with you. My head is on the chopping block, but I do agree with you. I did not complain when times were good and money was easy. Now, it's time to pay the piper. Hopefully we all saved some of that bonus money.