Stromline: Top salaries for oil industry, Exxon warns of job cuts

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Happy Friday!

I’m back in NYC after a 16 hour drive from Iowa. Don’t worry, I was sure to bring the pumpkin, which I accidentally grew back with me as a memento of my extended Midwest summer.

Will it last until Halloween? Time will tell.

Anyway … it was a busy week as revenue carried through. Oil-fired energy giant BP unveiled a massive strategy update, showing how the company plans to shrink its fossil fuel business and increase spending on clean energy.

On that note, we looked at how many companies like BP actually spend on clean energy. And in true Business Insider fashion, we ranked them.

Surprise: It’s not much, at least relative to what they spend on oil and gas.

• Since 2016, six of the seven oil companies have spent just over $ 9 billion, according to research firm Wood Mackenzie.
• For reference: Shape’s capex of 2019 was a cool $ 23 billion.

The winner: French Multinational Total. In fact, more than half of the total spending among the majors comes from Total’s investment.

What’s ahead: We are at a tipping point for spending clean energy among protagonists – as in, it’s going up again.

1. BP is among a handful of oil companies that have set out to be non-zero emission companies by 2050. It is the first to offer many details on how it will get there, including targets for close range.
2. The London-based company said oil and gas production would shrink by 40% in the coming decades. The significance of this can not be overestimated, considering BP is a company built on oil.
3. During the same period, BP will decode its expenditure on low-carbon energy. “Decuple”, as I just learned, means to multiply by ten.
4. Expect BP gas stations of the future to have stores for electric cars and maybe hydrogen fuel. BP invests heavily in retail. Oh, and the company pointed out that it sells a boatload of coffee every year.
5. What does all this mean for carbon emissions? The company said it would cut upstream emissions by up to 40%. You can see the other goals here.

We went through BP’s investor presentation. Here are the six key slides that chart the company’s new strategy.

I: The company said bioenergy including biofuels will be part of its strategy. We took a deep dive into Big Oil’s bet on algae biofuels earlier this summer – it’s one of my favorite stories, and you can read it here.

Benefit cuts: Earlier this week, we learned that oil giant Exxon is launching a handful of employee benefit programs to cut costs.

• These include: The agreement of the company’s pension savings account, educational reimbursement program, rewards for financial worker, and various benefits associated with international travel. You can see more details here.
• “The suspension is part of the company’s effort to reduce costs in response to the impact of the pandemic,” an Exxon rep said. “ExxonMobil’s total compensation remains competitive despite the suspension.”

Cuts: The company also warned last Friday of employment that would take effect in 2021, in the days after we reported that Exxon was shrinking its labor shrinkage through its annual performance review cycle.

• “The company is undertaking a comprehensive view of additional cost reduction, based on long-term structural efficiency, reduced activity, and an evaluation of job requirements,” Exxon said in a statement to Business Insider.
• “We see the potential for further reductions, including in overhead and management positions,” the company said.
• Read the full story here.

The context: Oil prices have been rising since May, but are still down more than 30% after the start of the year, forcing companies to cut costs.

Oil and gas is, of course, a volatile industry that can change on a centimeter (as evidenced by the number of times I have written “almost overnight, the price of oil …”). But the sector comes with big benefits, making potential profits head on.

• In fact: Petroleum engineers earn more than any other job requiring only a 4-year degree.
• Several other positions earn six figures. Some earn more than $ 300,000.

See how much you can earn at the top oil companies in the nation including Chevron, Shell, and BP.

Source: The salary data we use comes from the US Office of Foreign Labor Certification (OFLC).

• U.S. companies register paperwork with OFLC for H1-B visas on behalf of current as well as potential foreign workers, stating how much compensation those workers will be offered.

Read more: Petroleum engineers can earn six figures directly from the college – more than any other major. We asked 4 professors if the degree will still pay now that oil markets have collapsed.

4 great stories we have not dealt with

• Marathon Petroleum is selling its gas station chain, known as Speedway, to retail giant 7-11 for $ 21 billion, reports the Wall Street Journal.
• Launching of EV ChargePoint raised $ 127 million to expand its charging network in North America and Europe.
• Recurring solar company SunPower has transitioned to Q2 guidance, helped by “increased demand for conventional electricity and a rapid shift to online sales,” reports Greentech Media.
• Utility giant Dominion Energy gets a new CEO, reports S&P Global.

That’s it! Have a nice weekend.

– Benji

Ps. Here’s that pumpkin. It was green when I picked it up, and now it’s turning orange. The takeaway: Pumpkins ripen.