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Guys,The full script of CEO’s message are in this link. We need the efficient way to run our FE Con. business.Today we reported earnings of just under $600 million for the second quarter, a small fraction of the $5.7 billion we earned in the second quarter last year.To lower our operating expenses, we’re reducing our contractor and employee workforce in some areas to reflect lower expected activity levels, we’re finding ways to become more efficient at doing our work, and we’re making some choices based on what we can afford. Project Alpha is focused on corporate departments, service companies, and some Gas and Midstream groups and will reduce costs $1 billion per year, or about 20 percent from our 2014 spend.We remain committed to growing the capabilities of our employees through training and development programs. But, we’re making choices. We’re a big and capable company. We can do just about anything we want but we can’t do everything we want.I encourage all of you to look for smart ways to reduce costs.Operational Excellence So, we’re working on the things we can control in this low price environment… our cost structure, our execution of capital projects, and the priority and pace of new projects. The last area for continued attention is Operational Excellence and Process Safety Management, operating safely and reliably. We’ve helped ourselves greatly this year in this most important area.This necessitates that we take action to reduce costs and spend and improve project performance so we can realize the full potential of the great opportunities we have. Last quarter I told you we need to become more simple, clear, and decisive in how we run the company. The organizational changes we’re making should help in this regard, as we have simplified structures. But, it will also take a concerted effort by all of us to follow these behaviors every day as these times demand it. I know some of the actions we’re taking will be disruptive to some employees, contractors and families. We’ll work to be sensitive to your concerns as we make the needed changes.
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