BP cost cutting – where will it all lead?

This topic has 4 replies, 3 voices, and was last updated 14 years, 9 months ago by Scott Beveridge.

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October 9, 2009 at 7:41 am #3011

James McLauchlan
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BP cost cutting – where will it all lead?

BP posted record annual profits for last year of $34.3bn, up from $31.6bn in 2007, as it benefited from the high oil prices in early 2008. Chief executive Tony Hayward has said the company’s cash flow would break even if the oil price averages at $60 a barrel this year. BP will pay a quarterly dividend of 14 cents a share, up from 13.5 cents last year (that’s nearly a 4% rise to shareholders – ed).

Tony Hayward – BP chief executive said:

“We think the current turmoil may in fact create opportunities for us and we will look at those very closely”. October 2008

“We have made good progress in slimming and simplifying the organisation while at the same time strengthening the front line, but we’re not being complacent.” "In the current climate we especially need to maintain the momentum we have established in the drive to make BP more efficient. The mantra in BP today is: ‘Every dollar counts, every seat counts.’ " February 2009

October 9, 2009 at 7:44 am #25087

James McLauchlan
Participant

I feel so sorry for them struggling like this……

Of course cutting costs and reducing manpower will have no impact on safety at all will it?

The operators have already been warned by UK HSE that they have noticed standards are slipping and another piper Alpha style disaster is a possibility.

October 9, 2009 at 7:58 am #25088

Scott Beveridge
Participant

Same as Petrobras??? See powerpoint attachment….

petrobras_137.ppt

Filename: petrobras_137.ppt

Download

October 9, 2009 at 10:07 am #25089

Joel
Participant

A pretty sobering PPT Scot. Hope these occurences dont become the norm.

But third party supply market, whilst bouyant and on an upward climb benefitting both company and employee for the last 3 or so years is on a slippery slope right now. From my perspective it seems we are bordering on 2005/06 rates already. Perhaps not for personnel (yet) but definately equipment it seems. I hope it doesnt slide back to much more….we only just reached the point where personnel rates in SEA were parity or better than Nth Sea rates.

October 9, 2009 at 10:20 am #25090

Scott Beveridge
Participant

OzROV,

I agree that the system rates SEEM to be down to approx. circa 2005-6 and the rates drops are being tested on us SEA / APAC hands. I wish most of the hands over here could say / do what I’ve done and said (quite a few times) the magic word is NO.

What has been alarming is the lack of common sense (and knowledge) in much of the offshore engineering on anything from a small tasks (risers) to multi-million $ projects (deepwater installs) over the past 5 or so years. Project failure rates are up.
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