The coronavirus pandemic has taught companies worldwide one thing—their employees can work remotely. And in many cases perhaps more efficiently. It largely depends on whether it is office work or field work.
To some employees, it is clear that working at home remotely can make them more efficient without the usual office interruptions. Many workers have lamented they miss the “social” interaction of their co-workers, going to lunch, taking a coffee break or just generally schmoozing.
It’s kind of hard to think of doing remote work at well sites or production sites. On the other hand, if there are no well drilling sites, there is no remote work to consider, right?
But some energy companies are realizing the value of at-home work and are planning reductions of office space. BP plc is one of those. So is Halliburton.
Halliburton, the oilfield service provider has reportedly cut its workforce at headquarters by 1,000 people since May. Reports suggest it is also looking to reduce its real estate portfolio, something it’s done in Oklahoma with the sale of a fairly new command center near El Reno.
BP has joined the numbers of firms realizing the work-from-home trend is effective and is expected to incorporate the move into its office space allocation planning.
The reconfiguration process of the company’s offices all around the globe is expected to halve its property portfolio in several locations reported Zacks Equity Research. It has operations in 79 countries with more than 70,000 employees, of which around 50,000 will be allowed to work remotely.
Moreover, the company stated in June that it might reduce workforce by 15% or 10,000 personnel. The move might free up office space and reduce related costs for the company at a time when economic downturn has severely affected its financial position.
The company is likely to finalize a proper plan for its office space usage over the coming few months. The office space reduction will likely come in the form of selling or not renewing leases, which will enable it to shed some costs and increase efficiencies. This property downsizing move is expected to be the most dramatic one in the company’s more than 100 years history, per the Guardian.
Its embracing of the digital working environment and reducing office footprint can be part of the reinvention process, which was announced last February. BP’s new CEO Bernard Looney, who took over from Bob Dudley, revealed plans to halve carbon intensity of its products by 2050 or sooner. The company intends to install methane measurement at major hydrocarbon processing sites within the next three years.
