He is making the right moves by selling non E&P assets so that a better return can be made in the future because of the looming oil shortage. Neophyte investors only look at the past performance, instead of evaluating the future possibilies.
You win, yes, Beach is a nice Guy. Yes, these " Nice " men have effectively destroyed the company we once loved. No, I am not a Neophyte investor - I do understand both the Oil Industry and the Financial Markets. Yes, I am a Unocal employee and in the last 20 years, I have watched these Nice Men destroy this once fine company. They hire consultants upon consultants to make their decisions for them. Every year they cut costs but in doing so, they cost the company there future, and cause greaater loss in dollars due to waste and fraud and abuse by all ( Staff, Contractor, vendors ) trying to get a piece before it dies.
Am I bitter, No, Unocal has treated me well and I will work my ass of for them until I fall into there cost saving areas ( Maybe in a few weeks )
Lastly, Selling all non core E&P assets ( This is bull shit ) they keep selling assets to keep the company a float - very little left.
I keep hearing that Beach should go.. He owns the board, they will never fire him, and if the did, who in the company is better, ( Ding Ling or Chucky) Dumb or Dumber.
As a Non Neophyte investor, I doubt that Unocal has a future - and besides, what the heck is the looming oil shortage - You better study up on what you dont know before trying to lecture us on the future possibilies.
Selling off "non-core" assets and putting all your eggs in one basket is almost a guarnatee you will not survive the long haul. No one is smart enough to predict which way supply or demand will swing from year to year. Banking the entire future of your company on the likelihood you can do this is foolish to say the least, and so far it has been disastrous for UCL, its employees, and its shareholders.
If anyone thinks they can predict what oil prices will be even 6 months from now they will be sadly mistaken. What goes up comes down, and vice-versa. All you know is that it will not stay the same, but you don't know when the pendulum will swing. A year ago most "experts" were predicting low oil prices would persist for years. Unocal bought into this idea and lost big time. Also, bean counters are more likely to panic than people who have been around this industry for awhile. We have seen these cycles before and know that they always reverse with time.
Instead of trying to predict the unpredictable and time your moves, the smarter, and less risky answer is to keep more of an even keel. Save your money when prices are high, and don't chop off your arms and legs when prices go low. If you are diversified you will not feel the price swings so painfully and will be less driven to panic moves.
All of the previous gambles by Beach and company based on their "best estimate" of where oil prices were going were dead 180 degrees wrong. What makes you think they have it right this time?
These moves are driven by a combination of greed and incompetence, and both are a recipe for disaster.