Question-and-Answer Session
Operator
Thank you, Mr. Rosenthal. [Operator Instructions:]. We'll have our first question from Faisel Khan with Citigroup.
Faisel Khan - Citigroup
Good morning.
David Rosenthal
Good morning. How are you?
Faisel Khan - Citigroup
All Right, thank you very much. Just had a question on you're the cost in your Upstream business. I know you talked about the prepared remarks that the other respect from third quarter '08, third quarter '09 as a result of higher cost, and I think lower asset sales. Can you talk about what's going on with your efforts for cost reduction, given the reduction in commodity prices in the Upstream business?
David Rosenthal
Sure, I'll be happy to. First, I'll note that on the other items in the third quarter '09 versus third quarter '08 earnings and that 750 million, there is really about three main items about a third of that is from lower gains from assets sales year-on-year about a third does reflect increased operating expenses and that's really activity driven and then the other third really reflects the impact of foreign exchange effects.
If we look at our OpEx in the quarter. OpEx is coming in about as we expected this year. We continue to take a very long-term approach to operating expense management in the business. Just like we do with other aspects of our investment including like the investment plan and other aspects our business. And so when we look at operating expense, we really look at it not on a quarter-to-quarter basis, but how we're doing across the full year and even more so in the longer-term.
And as we look over a long period of time throughout the business cycle both in the upsides and in the downsides because again we don't ever allow the business to really get out of control on the upside, when prices and margins are high. We're not out hiring extra people and adding layers of OpEx under our cost structure and therefore when things turn down as they inevitably do, when -- we don't find ourselves in a position of having to make a dramatic changes, restructuring, reorganizations et cetera.
So, the other part that we're trying to do also is manage OpEx within the overall context of profitability and return on capital employ again throughout a long business cycle.
So, continuing the focus on the long-term but also looking at how we're doing year-to-date. If we look at how we're doing through the first nine months of the year, our total operating expense is down about 11% or $6 billion, certainly energy prices have contributed to that decrease as well as some favorable ForEx. But we have seen about $1 billion of efficiencies through our cost management efforts and of course some of that's been partly offset by new business activity and really the high level of activity and startups and ramp ups that we have ongoing.
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