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re: Rumor Shell is closing down its New Orleans operations

Posted on 1/21/16 at 9:18 pm to
Posted by Ancient Astronaut
Member since May 2015
36930 posts
Posted on 1/21/16 at 9:18 pm to
I hope it would be awful if they left. They owe it to their workers to stick around.
Posted by CorporateTiger
Member since Aug 2014
10700 posts
Posted on 1/21/16 at 9:19 pm to
I am just being honest, I don't see what having that office in New Orleans gets Shell that they can't get from Houston. I mean they will always have operations there, but there isn't a big need to be there on a corporate scale right now.
Posted by CorporateTiger
Member since Aug 2014
10700 posts
Posted on 1/21/16 at 9:20 pm to
Most of the workers would just get relocated. It isn't as if they would divest themselves of their deep water assets. She'll has made it pretty clear they consider deep water and LNG to be their thing.
Posted by BayouSizzle
New Orleans
Member since Jan 2016
316 posts
Posted on 1/21/16 at 9:44 pm to
quote:

I don't see what having that office in New Orleans gets Shell that they can't get from Houston.


Answer: very happy New Orleans-based employees (Houston ain't all that to many in OSS and surrounding area)
Posted by SuperSaint
Sorting Out OT BS Since '2007'
Member since Sep 2007
147748 posts
Posted on 1/21/16 at 9:48 pm to
You're dumb as frick aren't you
Posted by meeple
Carcassonne
Member since May 2011
10756 posts
Posted on 1/21/16 at 9:48 pm to
Talked with two Shell employees today that work at One Shell Square. They are not moving their operations.
Posted by CorporateTiger
Member since Aug 2014
10700 posts
Posted on 1/21/16 at 9:55 pm to
quote:


Answer: very happy New Orleans-based employees (Houston ain't all that to many in OSS and surrounding area)


Well yes, but given actual dollars and cents on the line, happiness of employees falls by the wayside. The employees will re-locate...... or not.

They have announced a total of 10,000 layoffs. My point is that they can easily run DW ops from Houston with a slimmed down presence in NOLA.
Posted by Oates Mustache
Member since Oct 2011
25779 posts
Posted on 1/21/16 at 9:57 pm to
I talked with one that said he believes it will happen within the next 3-6 months, and that the chatter this time has teeth.
Posted by meeple
Carcassonne
Member since May 2011
10756 posts
Posted on 1/21/16 at 9:59 pm to
2-1 I win

Hopefully you're wrong.
Posted by Oates Mustache
Member since Oct 2011
25779 posts
Posted on 1/21/16 at 9:59 pm to
It's always strange to hear such varying extremes.
Posted by BRgetthenet
Member since Oct 2011
118223 posts
Posted on 1/21/16 at 10:00 pm to
I talked to one that said a project team would be sent there (Houston) in the next few months, and that ops would remain.
Posted by CorporateTiger
Member since Aug 2014
10700 posts
Posted on 1/21/16 at 10:01 pm to
The IOCs in my experience tend to be very secretive about this type of shite, so it can vary wildly based on where each person sits.
Posted by Ancient Astronaut
Member since May 2015
36930 posts
Posted on 1/21/16 at 10:04 pm to
That really stinks. I'd hate to live in Houston.
Posted by BayouSizzle
New Orleans
Member since Jan 2016
316 posts
Posted on 1/21/16 at 10:07 pm to
quote:

My point is that they can easily run DW ops from Houston with a slimmed down presence in NOLA.


Sure...most opportune time to do so came after Hurricane Katrina. OSS lease is take or pay (there are some lease exits but are not based on low crude oil price) -- relocation costs ~$50 - 80k per avg person. Short term savings not as high as you think. But, you are right...could be consolidated to Houston. Likewise, many Houston operations could be consolidated to The Hague.
Posted by CorporateTiger
Member since Aug 2014
10700 posts
Posted on 1/21/16 at 10:13 pm to
The real benefit is long term savings. A lot of their staff (as evidenced in this thread) wouldn't be happy to move to Houston. If you try that when the oil and gas market is high, people quit to stay in NOLA. Now, people suck it up and relocate. Even if a few quit, there will be no shortage of replacements looking for work in Houston.

Long term you set yourself up to have less corporate overhead and short term that gets you a little bit closer to your 10k target.

Consolidating Houston to the Hague is harder due to timezones and the fact that you can just transfer all of the employees, but yes The Hague/London could gain some further level of control over the U.S. business from this.
Posted by BayouSizzle
New Orleans
Member since Jan 2016
316 posts
Posted on 1/21/16 at 10:23 pm to
quote:

A lot of their staff (as evidenced in this thread) wouldn't be happy to move to Houston. If you try that when the oil and gas market is high, people quit to stay in NOLA. Now, people suck it up and relocate. Even if a few quit, there will be no shortage of replacements looking for work in Houston.


OSS overhead relative to deep water rig lease contracts, over same period, is minuscule.

Most of 10k is coming from BG Group and non-US operations.

You see people as widgets. You are going to do well in Corporate America.
Posted by CorporateTiger
Member since Aug 2014
10700 posts
Posted on 1/21/16 at 10:33 pm to
quote:

You see people as widgets. You are going to do well in Corporate America


Look, I would love it if corporations cared about their employees, but they don't. Simple fact is that their job is to return profits for their shareholders, not keep their NOLA employees happy.

Here is the news release about closing of their Pittsburgh office. Those people are being asked to relocate much farther than NOLA to Houston, yet it didn't stop the company. That office, which wasn't in a skyscraper to which they held the naming rights was probably much much cheaper than OSS.

As I said, I've been around these IOCs this is the simple fact of how they work.
Posted by GTSwarms
FloRida
Member since Jul 2015
1563 posts
Posted on 1/21/16 at 10:33 pm to
It's a shame those 7,000+ employees could never have had the opportunity to work in an office with a real job because of the mistakes they made in their earlier years.

They're like the little engine that could
Posted by Canard Noir
Houston
Member since Apr 2014
1397 posts
Posted on 1/21/16 at 10:35 pm to
My cousin is VP of something or other GOM TLP and knows nothing of this.

I've booked 3 significant jobs for Shell in the last month or so that are going full stem ahead. Also, while I don't believe awards will be given as promised this year. My portion of BP's Mad Dog 2 project has a hard due date on Monday and they will not accept a bid extension. Take what you will from that info.

Rest assured, life is good for me with ONG jobs but we can float without them for a year or three, general economy effects aside...
Posted by BayouSizzle
New Orleans
Member since Jan 2016
316 posts
Posted on 1/21/16 at 10:46 pm to
quote:

As I said, I've been around these IOCs this is the simple fact of how they work.


I may or may not work for one of these IOCs -- one that may or may not be based in The Netherlands and England with offices off of Dairy Ashford in Houston, Louisiana Ave downtown Houston, Poydras St. in Nola., campus in Robert, LA, (and JV w/Saudi Aramco assets in Norco and Convent).

I may or may not have seen this IOC do some amazing things for its people during Katrina era and since. I also may or may not have seen blind ROACE, heartless thinking, too.

But in the big scheme of things, OSS overhead ain't chit. U.S. portfolio is far too important of a heartland for RDS worldwide portfolio -- especially with BG Group merger. If OSS ever goes down, treat it is the canary in the cave. Dat would be sightline to very bad internal prognosis.
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