Tom Bergin

Tom Bergin’s Profile

Exxon envy?

May 27, 2009

  A cynic might say they had seen it all before: New CEO of a big oil company, which is under pressure from shareholders, announces a wide-ranging restructuring that will make the company look like the much-admired industry leader.

 

Tony Hayward did it at BP in 2007 and Peter Voser, due to step up to the top job at Royal Dutch Shell Plc on July 1, did it on Wednesday.

 

http://uk.reuters.com/article/rbssEnergyNews/idUKLR94627920090527?sp=true

 

Perhaps fearing that restructurings, like jokes, don’t amuse as much on the retelling, Shell went one further than BP. While the London-based oil major said it would adopt Exxon’s approach of standardising procedures across its businesses, Shell said it would redraw its business units in the mould of Exxon’s.

 

Despite this, the Anglo-Dutch oil major’s announcement failed to attract the warm reaction investors gave BP’s aping of Exxon. Shell’s shares fell and analysts said Shell was coming late to the cost cutting and standardisation game.

 

Is this fair?

 

Shell may be behind BP but it has not just discovered cost cutting. At least since January, the company has been sending regular emails to staff demanding they slash overheads and the cost of contractors.

 

BP has indeed turned itself around in recent years, closing performance gaps against rivals, most notably in its U.S. downstream business. Some investors see this as Hayward’s restructuring paying dividends. Others say the downstream underperformance was due to problems at BP’s Texas City refinery which shut after an explosion and a hurricane, and that the recovery would have happened whoever was in charge.

 

Investors’ cool response to Shell’s restructuring may reflect scepticism about whether, in an industry where top management is usually made up of company lifers, any oil company can successfully adopt Exxon’s supremely profitable culture.

 

On the other hand, it could be that, at a time when the world’s largest oil company by market value is proving no more successful than rivals at addressing the industry’s biggest headache – falling oil and gas production — investors don’t just don’t get why everyone wants to be Exxon.

38 comments so far

This can be a really good read for me personally, Have to acknowledge that you’ll be among the best blog writers We previously observed. Thanks regarding putting up this informative article.

- Posted by Larraine Ferrao

I was suggested this website by my cousin. I’m not sure whether this post is written by him as nobody else know such detailed about my problem. You are incredible! Thanks!

- Posted by Lilliana Mccraken

I take pleasure in, lead to I found just what I was looking for. You’ve ended my 4 day lengthy hunt! God Bless you man. Have a great day. Bye

- Posted by traduceri romana daneza

Whispering Misty

So sorry you can expect to pass up the workshop!

- Posted by picture fram

Major thankies for the blog.Much thanks again. Great.

- Posted by fishinglovers

Thanks so much for the article post.Thanks Again. Fantastic.

- Posted by fishinglovers

I truly appreciate this blog post.Thanks Again. Fantastic.

- Posted by fishinglovers.net

Appreciate you sharing, great blog.Really looking forward to read more. Really Cool.

- Posted by Gastric Acid Reflux

I truly appreciate this blog article.Really thank you! Will read on…

- Posted by InventHelp Twitter

I am so grateful for your article.Much thanks again.

- Posted by Android review

I am so grateful for your blog article.Thanks Again.

- Posted by Dallas

findme

[…]Here is an excellent Weblog You might Discover Fascinating that we Encourage You[…]

- Posted by findme

I cannot thank you enough for the blog. Will read on…

- Posted by Muay Thai data

Major thanks for the blog.Really looking forward to read more.

- Posted by Android review

A big thank you for your blog article.Thanks Again. Much obliged.

- Posted by New Innovative Products

Fantastic blog article.Really looking forward to read more. Awesome.

- Posted by best mortgage rates

Fantastic blog article. Really Great.

- Posted by find a the best mortgage broker

Thanks-a-mundo for the blog.Really thank you! Much obliged.

- Posted by greenville sc loans

Thank you ever so for you post. Really Great.

- Posted by Rank Your Website with Excellence

This is one awesome post.Really looking forward to read more. Will read on…

- Posted by truck stops in Philadelphia

I am so grateful for your blog article. Great.

- Posted by download opera mini apk

Appreciate you sharing, great blog.Really looking forward to read more. Cool.

- Posted by who Mann is

Great blog.Much thanks again. Fantastic.

- Posted by Jewelry Store Stuart

Enjoyed every bit of your article.Really thank you! Really Cool.

- Posted by п»їM88

testme

[…]Sites of interest we’ve a link to[…]

- Posted by testme

Very informative blog article.Really looking forward to read more. Keep writing.

- Posted by locking wheelnut

I appreciate you sharing this blog article.Really thank you! Fantastic.

- Posted by water ionizers

I value the post.Thanks Again. Much obliged.

- Posted by Rencontres plan cul

Great article post. Great.

- Posted by http://fishinglovers.net

I really enjoy the blog.Thanks Again. Keep writing.

- Posted by tchat

A round of applause for your blog article.Much thanks again. Keep writing.

- Posted by luxury real estate in Chicago

Thank you for your article post.Really looking forward to read more. Keep writing.

- Posted by ass clowns

Major thanks for the blog post.Thanks Again. Great.

- Posted by bitch slurping assholes

wow, awesome blog.Much thanks again.

- Posted by Marriott Pittsburgh Hotels

I value the article.Thanks Again. Great.

- Posted by SEO

Hey, thanks for the article post.Much thanks again. Really Cool.

- Posted by Muay Thai website

Muchos Gracias for your article post.Thanks Again. Much obliged.

- Posted by Muay Thai information

I really like and appreciate your blog article.Much thanks again. Much obliged.

- Posted by Muaythai today

Very good post.Really thank you! Awesome.

- Posted by Muaythai today

Very neat article.Much thanks again. Fantastic.

- Posted by Data Modeling

I truly appreciate this blog post.Really thank you! Keep writing.

- Posted by Windows Mobile