Categotry Archives: Oil Companies

Major Comparison 2015

Similarly to what I did last year, now all the 2015 annual reports are out I thought it would be interesting to create tables showing revenues, profits, number of employees, and profit per employee for each of the majors. Despite the prolonged downturn, ExxonMobil is still doing very well as a company.  True, revenues are down and profits halved but any company that can make north of $16bn clear profit in the biggest slump in a generation must be doing […]

ExxonMobil Resists

Real-world stuff has kept me away from the keyboard for the past month or so.  This will happen occasionally, but I have no intention of quitting the blog permanently.  If I do I’ll let you know, so please do keep checking back. While I was away ExxonMobil came under pressure from a minority of shareholders to adopt various climate change policies: After a long battle to even get on the agenda for ExxonMobil’s 2016 Annual Meeting, the company’s shareholders on […]

Patrick’s posers

Last week Total’s CEO Patrick Pouyanne wrote an article in LinkedIn which is worth taking a look at: Investments by the major oil companies are being scaled back in response to falling prices, which means they will no longer be able to offset the natural decline of currently producing fields. This is a rather frank admission coming from the CEO of one of the major oil companies which has done just that.  But alas he doesn’t tell us why, if […]

Another major comparison

Now that each of the supermajors has turned in their 2015 Q4 and preliminary full-year reports, it is time for some commentary. ExxonMobil: IRVING, Texas – February 2, 2016 – Exxon Mobil Corporation today announced estimated 2015 earnings of $16.2 billion compared with $32.5 billion a year earlier. … Exxon forecast capital spending at around $23.2 billion this year, a 25 percent drop from 2015. Summary: Their profits have halved last year so they’re cutting CAPEX further for 2016.  They don’t need to […]

Profile view

One of the most damning things about the state of the oil industry is how this downturn – which has sent oil to between $40-$50 per barrel – has caused the whole industry to freeze like a rabbit in the headlights.  As I have said before: We last saw $50 per barrel oil in late 2004, before which it had been consistently lower than that.  I was working in the industry in late 2004 and I don’t recall there being […]

Major comparison

Following on from this post, I thought it would be interesting to do a little digging and prepare charts for each supermajor showing their revenue, profit, staff headcount, and profit per employee for the past 3 years. Once again, I will state that this is a pretty crude method of judging a company’s performance.  One obvious shortcoming is the fact that as Upstream revenues have dropped, the profitability of Downstream sectors – which are more labor-intensive – has increased, and so one […]

Where the axe should fall

ExxonMobil bucks layoff trend reports Upstream Online. ExxonMobil will not make any major staffing cuts or reorganisations of its corporate structure, bucking a growing trend within the industry of operators slashing their headcounts in order to preserve cash amidst the steepest decline in oil prices in decades. I suspect the reason for this is that they were running a pretty lean operation to begin with.  Take a look at the table below (numbers taken from Wikipedia: ExxonMobil, Shell, BP, Chevron, […]

Blah, blah, blah

According to Upstream Online: A climate strategy is needed, and quickly It is? The topic under discussion is the Oil & Gas Climate Initiative, which I wrote about here. This is not all “blah, blah, blah,” argued Repsol chief executive Josu Jon Imaz San Miguel when talking in Paris last week about an oil industry initiative to help tackle climate change. No?  We shall see. The Spaniard was one of the oil and gas industry leaders who stuck their heads above […]

Sharpen those axes

Norway’s Statoil isn’t fucking about in Houston: Around 70 Statoil employees reportedly were stripped of their jobs with immediate effect at its Houston-area offices in the US after refusing to take voluntary redundancy as part of manpower cutbacks at the Norwegian state-run oil giant. Ouch!  I don’t think we’re in Norway any more, Olaf! Retrenched staff – largely drawn from the company’s IT, technical and communication departments within its upstream business – were offered voluntary redundancy packages or alternative positions […]

Get off your knees!

This is not good news for anyone who holds stock in the companies concerned: The leaders of 10 of the world’s biggest oil companies have offered their qualified support for a new global treaty on climate change. The producers of 20% of the world’s oil and gas say they share the ambition to limit warming to 2C. They promise to work to reduce the greenhouse gas intensity of the global energy mix. … The Oil and Gas Climate Initiative represents […]