Other than for other geographic regions such as Canada, no other service provider will be granted a license or be given access to the software that manages the lease rental payment process in the United States. It is an exclusive engagement. Some might think that without the competitive elements driving the service provider, the lease rental payment process will become inefficient. And that would be the case. However I would ask what competitive elements are we looking for. The oil and gas industry consistently looks to establish multiple vendors in every category of offering. The innovator or inventor of a product or service is left to fend for themselves against half a dozen “me-to” competitors who provide low cost and low quality services to the industry. The original providers IP or advantage washed away by the oil and gas industries lack of respect for anyones IP. This has been the traditional manner of operations in oil and gas for many years. And these days are gone.
Now what will happen is the service provider will have the exclusive rights to manage the process. However they will also have the competitive forces from other service providers managing other processes driving their efficiency and effectiveness. It will be the toolset of specialization and the division of labor that they will be able to rely on to make their service offerings more valuable to their producer clients. This they will do without the risks associated of losing their market share to someone who thinks they can do it cheaper. The competition will be between the service providers in terms of how they use specialization and the division of labor to increase their efficiency.
The ability to concentrate on the process and its efficiency will be the success in the long term. The team of people that will be employed at this service provider will be able to use their advanced educations, their ideas, the software development capabilities of People, Ideas & Objects, the most recent and advanced sciences and make themselves profitable and efficient for their producer clients.
Being a licensed service provider will require demonstration of significant skills in the marketplace. The experience, skills, knowledge, and understanding of the industry will be what we are looking for in a service provider. Their participation in the user community will be a mandatory requirement, particularly in the process that they are looking to manage. And to get started with that it is necessary to join our network (@piobiz on Twitter). Granted this development will take time. And time is what we have. We are not currently scheduled to go into developments until 2019 so there is plenty of time for people to organize themselves for these opportunities.
Its important to recall the revenue streams and value proposition that we are working under here. The user community is budgeted to receive $333 to $667 million in direct payments from People, Ideas & Objects for their contributions during developments. And the service providers will have the tens of billions of dollars that the producer firms are incurring in G&A diverted to them as annual revenues for their service offerings. And that is in consideration that in 2012 and 2013 the opportunity costs of not having the Preliminary Specification operational with the decentralized production model cost the oil and gas industry $170 billion. Software has such an impact on what we do these days. Its important we get a handle on these things by joining our network (@piobiz on Twitter).
The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here.