Good to hear you made it through Ag2012.

I'll go out on a limb and predict that those aren't the last cuts CVX makes.

CVX, BP, Shell, XOM - they're all oversized & will be forced to radically restructure or else.

Some buzz on the M&A side of things:

http://fuelfix.com/blog/2015/07/16/four-houston-oil-companies-among-goldman-sachs-picks-for-likely-acquisition-targets/#33445101=0

So is operator engineering recruiting expected to be absolutely brutal this year for new/recent grads?

This thread has made me think either hiring will be remain frozen (especially to those without an internship at their particular company), or that there may still be some hiring as new graduates may try and cover some of the work load that some of the laid off people had.

Anyone on a recruiting team and know the plans?

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CVX, BP, Shell, XOM - they're all oversized & will be forced to radically restructure or else.

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It's interesting that Shell has been "restructuring" but hasn't released anything about cuts externally. I always figured that co like to release this type of thing because investors generally react favorably to this...

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So is operator engineering recruiting expected to be absolutely brutal this year for new/recent grads?

This thread has made me think either hiring will be remain frozen (especially to those without an internship at their particular company), or that there may still be some hiring as new graduates may try and cover some of the work load that some of the laid off people had.

Anyone on a recruiting team and know the plans?

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We are still attending recruiting events at A&M and will be interviewing for internships. We rarely hire new grads outside the intern pool anyway so I would expect we won't be looking for full timers. Not sure how many (if any) offers are gonna go out to current interns for full time positions.

I would expect most companies to keep up recruiting appearances, especially for internships. I also expect the number of spots in that pool to decrease significantly.

CVX cutting 10% of Houston office is big. That's 950 employees. I'm guessing on average they made $100K so that's $95M of income cut. Now consider the fear that's going to be generated at other firms. When a small independent cuts, I don't think people care but when CVX makes big cuts, that makes a dent.

I don't know much about Chevron's structure but surely a lot of those jobs are support staff...does an HR Rep or entry level IT guy make $100k at Chevron??

I thought I read that the overall job cuts Annie card would reduce costs 1 billion. Yikes

The cuts at Chevron are across the board. It averages around 10% for all departments. A lot of it is consolidation of some positions. Everyone is basically having to re-apply for their jobs over the next couple of months so will be a stressful time for most.

The job cuts are a portion of the overall $1B cost reduction target.

The average XOM employee is around 120K. I think CVX is in that range.

The billion I think is from overall cost savings not just by employee cuts.

Does XOM still not pay cash bonus?

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Crude inventories fell 4.2 million barrels to 459.68 million in the week to July 24, more than twenty times analysts' expectations for a decrease of 184,000 barrels.- Bloomberg

Looks like oil is getting a decent bounce in price based on the news.

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Best news I have heard in awhile

Your personnel cost savings are quite low.

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The average XOM employee is around 120K. I think CVX is in that range.

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Is that after fringe or 120k avg salary only?

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Swift Energy hiring Lazard to help with "strategic alternatives".

Ruh roh.

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bankruptcy is the only alternative.

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CVX, BP, Shell, XOM - they're all oversized & will be forced to radically restructure or else.

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It's interesting that Shell has been "restructuring" but hasn't released anything about cuts externally. I always figured that co like to release this type of thing because investors generally react favorably to this...

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Shell is having layoffs, November time frame. Could be earlier...

Quite a few (a lot actually) HR reps make mid $100s.

Quite a few make around $100, and there are those below $100 as well.

Put simply, the organization is extremely top heavy. Most companies, CVX included, haven't seen the generational exodus they thought might start hitting about now. I know several folks who have said "hope I get a severance so I can retire a little early". As a young professional, I look at them with a bit of disgust for potentially costing a job for somebody who has another 20-30 years of work ahead of them. But I also don't fault them for taking the corporate hand out that is their income package.

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CVX, BP, Shell, XOM - they're all oversized & will be forced to radically restructure or else.

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It's interesting that Shell has been "restructuring" but hasn't released anything about cuts externally. I always figured that co like to release this type of thing because investors generally react favorably to this...

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Shell is having layoffs, November time frame. Could be earlier...

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Actually some divisions/functions have already gone through it, some are going through it now, some are about to as you alluded to and some haven't addressed it (but hard to imagine they will be immune). The point I was trying to make is that not to have a consolidated representation externally seemed unusual.

WRT Chevron making folks reapply, Shell made our division do that in 2009. Caused a lot of heart ache for people that really didn't need to be put through such a thing. I feel for you.

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Some buzz on the M&A side of things:

http://fuelfix.com/blog/2015/07/16/four-houston-oil-companies-among-goldman-sachs-picks-for-likely-acquisition-targets/#33445101=0

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100% agree with this. We just had a meeting on this very topic yesterday. The market will be ripe for the picking once the banks start calling their debts at the end of the 3rd quarter

T&P for all of my CVX peers on the cuts. I'm on Gorgon for the foreseeable future, so hopefully that spares me some "what if" heartache.

Our company has already cut 10% and I think more is coming. Our corporate leaders are starting a new campaign talking to all the offices trying to boost morale and increase efficiency. I don't see more layoffs just yet but I anticipate benefits and/or salary reductions if things do not improve soon.

I bought a XOM yesterday. May not be bottom for them but I'm in for the long haul.

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Who's picking up Goodrich's Eagle Ford acreage?

http://eaglefordtexas.com/news/id/154965/goodrich-petroleum-corporation-finalizing-major-eagle-ford-asset-sale/

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EP Energy

CVX declares $1.07 quarterly dividend

Interesting. They recently sold nearby acreage to Cabot so somewhat odd...

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Some buzz on the M&A side of things:

http://fuelfix.com/blog/2015/07/16/four-houston-oil-companies-among-goldman-sachs-picks-for-likely-acquisition-targets/#33445101=0

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100% agree with this. We just had a meeting on this very topic yesterday. The market will be ripe for the picking once the banks start calling their debts at the end of the 3rd quarter

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Don't count on banks to call their debts as expected. It will depend on how well their balance sheets look and if the banks think they could convert non-performing assets to performing assets by restructuring waiting for the market to recover. We saw that with forclosures in residential RE and continual restructuring of commercial RE loans after that.

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Who's picking up Goodrich's Eagle Ford acreage?

http://eaglefordtexas.com/news/id/154965/goodrich-petroleum-corporation-finalizing-major-eagle-ford-asset-sale/

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EP Energy

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Is that fact or speculation?

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CVX cutting 10% of Houston office is big. That's 950 employees. I'm guessing on average they made $100K so that's $95M of income cut. Now consider the fear that's going to be generated at other firms. When a small independent cuts, I don't think people care but when CVX makes big cuts, that makes a dent.

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Cutbacks always frustrate me. Not because they aren't important or necessary sometimes, but because it shows just how wasteful major companies are.

I read that of the 950 roles being cut, about 25% of the roles (slightly more) were just unfilled FTE's. So now that 950 is closer to 680. That means there are that many roles that Managers were holding budget for, but never needed.

I'm at one of the majors and I know for certain my boss has an FTE that he has tried to give back to his boss, saying he doesn't need it, and his boss won't accept it back right now. Now maybe it's just posturing so we can come up with "costing savings" later when the company forces it, but it's just silly how when necessary, we always find "cost savings" easily.

I've heard numbers such that 5% cuts are just "table stakes" and would likely be similar to chevron in terms of just not hiring for empty roles. It's crazy.

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Who's picking up Goodrich's Eagle Ford acreage?

http://eaglefordtexas.com/news/id/154965/goodrich-petroleum-corporation-finalizing-major-eagle-ford-asset-sale/

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EP Energy

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Is that fact or speculation?

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It makes more sense to be them, Carrizo, or Chesapeake due to where their acreage is located.

I'd lean more Cabot, but I've seen the position map you're talking about which makes sense too

I know it's not blackbrush, they recently sold their position in the area

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Who's picking up Goodrich's Eagle Ford acreage?

http://eaglefordtexas.com/news/id/154965/goodrich-petroleum-corporation-finalizing-major-eagle-ford-asset-sale/

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EP Energy

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Is that fact or speculation?

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Interesting, I don't see it anywhere else still.

Source:

edit: apologize for the dp