Grab your boots Houston! BP is relocating to Denver while claiming that city will become the new globa energy center (West: college, restaurants)

[Dallas retail updater]

Originally Posted by WRM20

Right. Crude oil exports were banned for the last 40 years, and the US has been a net importer since the 50's, so I doubt you remember the days of exports.

The consolidation of oil and gas offices to Houston started moving quickly in the 80's. Before that, every company had a large number of offices all over the oil producing areas, as that was the only way to get the work done when there was no networking and communication was by mail or telephone.

Okay. That is interesting. For now, let's allow this thread to rest. If another energy company happens to relocate away from Houston, bump it up and let us know.

Thanks!

[Cowboys fan in Houston]

Originally Posted by Dallas retail updater

Okay. That is interesting. For now, let's allow this thread to rest. If another energy company happens to relocate away from Houston, bump it up and let us know.

Thanks!

An energy company DIDNT relocate away from Houston. One division of one energy company left and I already mentioned why it made sense that they did. Houston is still the HQ for BP in the Americas. Denver will be the office for the onshore division for the lower 48.

[Rip808]

Originally Posted by Milton Miteybad

As Mrs. Miteybad is currently employed by BP, and having that much connection to the company, I may be able to supply a bit of perspective.

BP currently employs rough 79,800 personnel worldwide. About 5,000 of those work in Houston, and out of that number, roughly 200 are going to Denver to establish an office for the L48 division. BP had an office in Denver some years ago (as have many oil companies), but it was closed during one of several corporate reorganizations.

BP's GOM operations, which absolutely dwarf any other segment of BP activity in the U.S., will remain in Houston, as will most U.S. corporate management operations. Most other BP regional offices will be unaffected.

Speculation: L48 is moving to Denver in order to facilitate the marketing and eventual sale of certain U.S. assets, possibly including, but not necessarily limited to BP's operations in the San Juan Basin. The most likely target of such marketing efforts? Other operators in the Rockies, most of whom also have some presence in Denver.

BP's troubles arising out the Macondo well disaster have left the company with the apparent need to unload non-core assets so as to raise cash and improve liquidity. It would appear that L48 has been designated as a candidate for sale, and some portion or all of its assets may be on the sale block in the near future.

Upshot: There is considerably less to this announcement than meets the eye.

"Speculation: L48 is moving to Denver in order to facilitate the marketing and eventual sale of certain U.S. assets, possibly including, but not necessarily limited to BP's operations in the San Juan Basin. The most likely target of such marketing efforts? Other operators in the Rockies, most of whom also have some presence in Denver."

I have heard this as well.

[KerrTown]

Originally Posted by Cowboys fan in Houston

An energy company DIDNT relocate away from Houston. One division of one energy company left and I already mentioned why it made sense that they did. Houston is still the HQ for BP in the Americas. Denver will be the office for the onshore division for the lower 48.

It turns out BP is no longer a British Company. Luckily last time, BP decided to build a small administrative office building on the West Houston campus instead of moving the headquarters to Chicagoland (the research center in Warrenville/Naperville or the Aon building--the tall white office building in front of Millennium Park, famous for the Cloud Bean sculpture from 10 years ago).

Media reports noted that the division head has Colorado ties (a Mines graduate), which may explain this dubious decision.

I wouldn't blame anyone thinking about Chicago (despite the harsh winter, especially this year), but Denver? What's so good about Denver and Colorado, again?

[Billy Thunderchicken]

Originally Posted by KerrTown

..but Denver? What's so good about Denver and Colorado, again?

Nothing. I've lived there and Houston. Denver's frigid, overrated, and has a high cost of living. Houston has soul, life, variety, warmth, and isn't pretentious.

[astrohip]

Actually, Denver is a fun, vibrant city. Visited many a time. It has great weather (most of the time), plenty to do outdoors, lots of nightlife & restaurants, etc. And the geography is stunning!

I've often felt Denver & Houston are kindred in spirit cities. We both have "frontier" spirit, lots of O&G activity, a growing youth population that likes to eat, drink & be merry, and a "let's get it done" attitude.

[gwarnecke]

Shell used to have small satellite offices in Denver and Pittsburgh, both of which have closed in the last few years, with impacted staff relocated to Houston.

When the Denver office closed, far more people left Shell than left Denver.

When the Pittsburgh office closed, far more people left Pittsburgh than left Shell.

Part of this was a function of the state of O&G at the time (ie, most folks who left Shell were probably able to find work at other O&G firms in Denver), but it could serve as an example of the attractiveness of Denver to those who want to recruit and retain top talent.

Interesting that L48 is not only moving to Denver, but supposedly leasing space in a seriously fancy new campus that doesn't even exist yet. This seems at odds with their mantra of "lean, lean, lean!", and with the idea that they're looking to sell off assets or maybe the whole division.

[JimBaker488]

Originally Posted by Texas Ag 93

I know you get frustrated by the overall negative views of Texas on C-D. I do as well. My approach has just been to avoid engaging other posters in those threads (usually, anyway). However, I think you are overstating the negatives of Denver. I think it's a great city, and most people who relocate there are very happy with it. I know we were. It's a regional center because of all the Federal presence (a major factor in its economy that we should have mentioned previously) and yes, it's always been a center for energy development long before oil was discovered through mining. Don't disagree with your observation that Denver is probably a bit overhyped, but to a much lesser extent than you do.

I second that ! Actually it's one of my favorite cities. Incredibly beautiful mountain country with that wonderfully dry air. And unlimited recreational opportunities if you like to hunt and /or fish not to mention skiing.
And the winters aren't bad at all there because those storms blow on thru. Being a native Midwesterner
I can tell you long winters can be cold and overcast and depressing but in Denver there's lots of sinshine in the winter. I've lived there two different times and I love the city.

[JimBaker488]

Originally Posted by Cowboys fan in Houston

An energy company DIDNT relocate away from Houston. One division of one energy company left and I already mentioned why it made sense that they did. Houston is still the HQ for BP in the Americas. Denver will be the office for the onshore division for the lower 48.

After the relocation of a couple hundred folks from Houston to Denver I would imagine the Houston area still has more BP employees than any other single place, that is anyplace in the world including London or anywhere else in Europe.

[JimBaker488]

Originally Posted by Johnhw2

Op is confused and confusing himself. ExxonMobil didn't move XTO to FW. It's was already there. They left it there to avoid the mindset they had to sell out of US land based production and miss this whole shift in domestic production due to advanced fracking. It had nothing to do with houston or FW specifically. OP trolling is trying to make a story where none exists, this is what you are doing with my facts.

I doubt that Tillerson listed the XTO acquisition on the resume he showed Trump because that was a bad deal since he forgot the basic tenant of buying stocks & bonds & RE - buy low and sell high because XTO was at it's priciest when Exxon bought it. And also that was Barnett shale which was by then over the hill as I recall.