Exxon to Slash 14,000 Jobs Worldwide as Oil Demand Drops

https://www.ecowatch.com/exxon-job-cuts-2648560659.html

by reddotX • 6 years ago

56 13 6 years ago

kungito• 6 years ago

Nice

AniseAbyss• 6 years ago

Wonder if the US government in its belief in free markets will bail out the oil industry? Trump seems to be courting those votes.

ReptileMan• 6 years ago

When it comes to energy sources and military tech there has never been "free" market anywhere in the world.

US will support oversized oil industry for a long time after renewables are on par with hydrocarbons. A matter of national security.

mark567g• 6 years ago

I'm long on BP, they have adopted a green energy transition plan.

mgh2• 6 years ago

By 2050?

aaron695• 6 years ago

This is because of the pandemic and people are literally dying.

Not from SARS-CoV-2, which is also directly causing deaths, but from the world's economy collapsing.

But they are mostly the real poor people that Twitterverse doesn't care about, so meh I guess.

Non blog spam -

https://www.reuters.com/article/exxonmobil-layoffs/exxon-to-...

jackric• 6 years ago

"economy collapsing" - what I'm seeing is demand leaving businesses that were habitual or not truly necessary. For example: work from home -> spend less on transport, spend less on mobile food, company spends less on office space.

Regrettably there's transition pain for workers in abandoned sectors but other sectors will grow out of this (e.g. deliveries/home office equipping/remote work centres).

This transformation of what work entails, to its essentials, with less office face time, will benefit civilization at large in the long run (Antifragile).

I support financially assisting & retraining displaced workers through this transformation, and am against "bailing out" obsoleted corporate entities.

RhodoYolo• 6 years ago

The oil industry is not the only industry hurting right now, so although this is on a post about Exxon, The OP's point holds true.

jjones2• 6 years ago

Right, I could care less about this Wuhan flu crap we need to focus on getting the world's economies back on track. Many more people are suffering from economy issues than the flu.

jakupovic• 6 years ago

Let's see not a problem if it doesn't affect you. Hmm, what about the ones that it does?

Patatarte• 6 years ago

What is really singular in the case of XOM is that that it was one of the O&G supermajor that was not laying of its employees, even during previous downturns. This shows that things are really going downhill in the O&G industry.

fuzzfactor• 6 years ago

Oil wells are unique assets.

Lots of cowboys with oil wells are still pumping as much as they were before, only getting less dollars per barrel now.

Others are producing less due to the overall decrease in demand, and at the same lower price per barrel, making even less money per month than they were from the same wells.

Either way some have financial structures in place that allow them to continue to provide shareholder returns regardless of the suddenness or severity of the downturn.

Simply because oil is still coming out of the ground.

The difference is just the lower rate the wealth can build.

They might be looking at other things like real estate to put their oil money into, rather than drilling any more wells any time soon.

Other oil producers can be financially extended in ways that make them more sensitive to stress of different degrees, which can stongly magnify a significant upset.

The most unfavorable outlook for producers is when $/BBL x BBLs is declining faster than $/BBL.

Majors can withstand this for long periods of time, which is what they have now done for the good part of a year. They have now accepted a slow increase in $ and BBL from here as predictably too low in light of their encumberances to support going forward with what was considered a full staff a year ago.

They're producing less oil at a lower price and they're going to use fewer people to do it.

Otherwise the shareholders would take too much of a beating.

When balancing the books boils down to headcount versus dividends, it is considered as bad as it gets.

Some could also say major employers have been very generous so far preserving many jobs as long as they have.

Well, Shell actually raised their dividend this week but they're not planning on kicking out as many people either.

Exxon to Slash 14,000 Jobs Worldwide as Oil Demand Drops

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