AdamB wrote:When deciding to go ahead with a project, make sure it can withstand your IRR targets even if oil hits $10/bbl. While idiot companies that attempt to borrow themselves into growth occasionally succeed, those betting on sure things always do. Older companies know this. Boomer companies, not so much.
Chevron says the project will be profitable as long as oil prices stay above $60 or $70 per barrel, well below Monday’s level of $97.70.
ROCKMAN wrote:"It seems like they are using low oil price as an excuse to lay off people". They never need an excuse to lay folks off...never have...never will. LOL. The only folks XOM management has to justify its position is to the board of directors who, in turn, justify their actions to the major shareholders. And it's the board/shareholders that would be DAMANDING layoffs.
As has been said many times: it ain't personal...just business.
misterno wrote:well so what were their excuse for laying off people?
Sounds like you are not looking in the right place. CVX swung from $3.5 billion profit to a half a billion dollar loss. BP had a $3.3 billion loss. XOMs profits fell by more than half from $6.6 billion to $2.8 billion.misterno wrote:When I look at the income statements and balance sheets of these 2 companies I do not see a huge drop.
Chevron Sees Red: Profits Fall, Production GrowsAsset sales, job cuts and less spending are in the cards for Chevron Corp. (NYSE: CVX) in 2016 after tanking commodity prices led to a $588 million net loss for fourth-quarter 2015. That is a 117% swing from reported 2014 earnings of $3.5 billion.
Exxon Mobil’s Profits Fall and BP Cites Low Oil Prices in $3.3 Billion LossThe newest measure of the oil industry’s falling fortunes came on Tuesday in the form of a $3.3 billion fourth-quarter loss reported by BP. Exxon Mobil, the American industry’s largest player, reported a 58 percent decline in its quarterly profit. The entire industry is reeling from the effects of a global glut, and slackening international economic growth. This is the worst industry decline since similar commodity price collapses in the 1980s and 1990s forced oil companies to slash payrolls and dividends.
misterno wrote:AdamB wrote:When deciding to go ahead with a project, make sure it can withstand your IRR targets even if oil hits $10/bbl. While idiot companies that attempt to borrow themselves into growth occasionally succeed, those betting on sure things always do. Older companies know this. Boomer companies, not so much.
So you are telling me that these big companies never invested in oil wells with a cost over $30.
misterno wrote:
Uum, google does not agree with you.Chevron says the project will be profitable as long as oil prices stay above $60 or $70 per barrel, well below Monday’s level of $97.70.
http://peakoil.com/production/facing-up ... l%E2%80%99
misterno wrote:"It seems like they are using low oil price as an excuse to lay off people".ROCKMAN wrote: They never need an excuse to lay folks off...never have...never will. LOL. The only folks XOM management has to justify its position is to the board of directors who, in turn, justify their actions to the major shareholders. And it's the board/shareholders that would be DAMANDING layoffs.
As has been said many times: it ain't personal...just business.
well so what were their excuse for laying off people?
misterno wrote:Also, it is not a coincidence that they laid off so many people at the exact time of oil going down.
AdamB wrote:misterno wrote:AdamB wrote:When deciding to go ahead with a project, make sure it can withstand your IRR targets even if oil hits $10/bbl. While idiot companies that attempt to borrow themselves into growth occasionally succeed, those betting on sure things always do. Older companies know this. Boomer companies, not so much.
So you are telling me that these big companies never invested in oil wells with a cost over $30.
I didn't say anything about cost.misterno wrote:
Uum, google does not agree with you.Chevron says the project will be profitable as long as oil prices stay above $60 or $70 per barrel, well below Monday’s level of $97.70.
http://peakoil.com/production/facing-up ... l%E2%80%99
There is a difference between an IRR target, and survival. So Chevron must forgo the IRR target? Fine. Lose profitability while cost cutting their way to survival? They, like all the others who survived the 1986 crash, certainly know how. It is unlikely they have forgotten.
Subjectivist wrote:[
Actually the people who survived the 1986 crash have all retired by now, that was nearly 30 years ago.
Subjectivist wrote: Many of the managerial level working there today were not yet born when the events of 1986 were taking place, and most of the others were children way back then.
Subjectivist wrote:Many of the managerial level working there today were not yet born when the events of 1986 were taking place, and most of the others were children way back then.
ROCKMAN wrote:I know it pisses so folks off when I say but the truth is the truth: we ain't you momma. It's not personal...just business. IOW we're pretty much like almost everyone else. LOL. You don't want to get f*cked over by high fossil fuel prices then don't choose a lifestyle so dependent upon ff.
Users browsing this forum: No registered users and 248 guests