21st Century Marketplace Vision - Our User Community - Part XIV

Four, Edge 

Individual AI optimizes for usage. 

Institutional AI optimizes for edge. 

Coordination, signal, and bias defining the first three institutional challenges of Artificial Intelligence, edge defines the fourth. The issue is not whether a technology is widely used, but whether it creates a differentiated capability that matters economically. Usage alone is not strategy. Edge is.

Cloud computing introduced a cost-sharing logic that is difficult to dispute. The sharing of the capital, operating, and maintenance costs of Information Technology infrastructure is a rational response to the inefficiency of requiring each firm to build the same foundational capabilities for itself. That advantage becomes especially important where computing demands are dynamic and where on-demand access to processing capacity provides both flexibility and cost discipline.

Those benefits are now being challenged by the growing fashion for so-called edge computing, in which some functions previously performed in the cloud are reclaimed within the firm itself. From my admittedly biased perspective, this often appears to be a classic Information Technology turf war between competing empires. Firms that pursue edge computing for reasons of data control or institutional preference may be redirecting resources toward areas in which they possess no competitive advantage and which do not form part of their distinct competitive advantage. To restore their decimated empires in Information Technology.

This issue becomes even more pronounced when one moves from edge computing to edge Artificial Intelligence. In that setting, the argument strengthens for shifting more computational capability back inside the firm. If accepted uncritically, that logic begins a long march away from cloud computing, along with its cost advantages and its dynamic access to scalable computing power. That may be appropriate in narrow circumstances. It should not, however, be mistaken for a general institutional advantage, particularly where firms’ real strengths lie elsewhere. Or in areas such as accounting and administration that do not form distinct competitive advantages of the firm.

For Synallagi, that distinction is important. The 21st Century Marketplace Vision for Oil & Gas papers being written for 2026 address the development of the Petroleum Lease Marketplace, Resource Marketplace, and Financial Marketplace, together with the Targeting Framework. I do not presently see any necessary dependence of those structures upon edge Artificial Intelligence. That point is not especially material in any event, because the architecture, design, and development of Synallagi have now been passed to our user community. If they identify a productive use for such an approach, they will be in a position to implement it. What remains important at the architectural level is that one of Synallagi' principal benefits lies in the consistency of its Organizational Constructs, including Professor Paul Romer’s theory of Endogenous Technical Change, or sharing and its massive cost reductions.

This returns us to George Sivulka’s central point. The goalposts in Artificial Intelligence move continuously. Foundation model firms iterate rapidly and compete across broad populations of users. Yet the true edge does not lie with broad access alone. It lies with purpose-built applications that remain ahead in their specific domain because of their unyielding focus on a defined commercial problem. Even as foundation models improve, the capabilities that matter most for business outcomes will continue to reside in products designed for particular tasks, industries, and institutional purposes and not technologies.

That is the sense in which edge should be understood here. It is not primarily a question of where the computing physically occurs. It is a question of where differentiated institutional capability is created. Synallagi is designed to create that edge through domain-specific transaction architecture, process discipline, standardized accounting, and coordinated execution across oil & gas. Its edge lies in the structured integration of Information Technology, Intellectual Property, the Targeting Framework, and the specialized knowledge of our user community. That is a far more durable basis of advantage than the internal ownership of computing infrastructure for its own sake.

None of this should be confused with the tools of the user. It is entirely reasonable to expect that users of Synallagi will access multiple cloud computing services through many different devices, and that much of that access will increasingly be mediated by Artificial Intelligence-based tools that either interact with Synallagi. That is not the issue. The issue is whether the producer firm should begin rebuilding substantive administrative and accounting infrastructure within itself under the banner of edge capability.

People, Ideas & Objects’ view is that this would be a strategic error. We regard oil & gas producers as possessing distinct competitive advantages in their land & asset base, and in their engineering & geological capacities and capabilities. Our domain of concern is the most profitable means of oil & gas operations. Administration and accounting are not competitive advantages in themselves. They are competitive necessities. For producers to leave those functions to those who choose to make administrative and accounting capacities and capabilities most profitable for producers is, in our view, the wiser decision.

That is the underlying point. Edge, properly understood, is not a matter of reclaiming infrastructure for symbolic control. It is a matter of concentrating institutional effort where genuine advantage can be created. Synallagi is designed on that basis. It does not seek to make producers owners of more internal Information Technology territory than they need. It seeks to provide them with a purpose-built institutional capability that strengthens profitability, coordination, and execution across the marketplace.

Five, Outcomes.

Individual Artificial Intelligence saves time.

Institutional Artificial Intelligence scales revenue.

Since the initial publication of Synallagi in August 2012, People, Ideas & Objects have advanced a value proposition in the range of $25.7 trillion to $45.7 trillion over the first twenty-five years of operation. That proposition was set out in greater detail in a series of publications during February 2013 and in value calculations prepared on February 23, 2015. Its logic has since been reinforced by our analysis of continental natural gas revenue losses this century, which exceed $5 trillion.

A central element of this value proposition is the treatment of capital. Over the same twenty-five year period, consensus capital requirements appear to fall within a range of approximately $20 trillion to $40 trillion. Synallagi’ management of capital differs fundamentally from current industry practice. By recognizing capital within a competitive time frame consistent with the expectations of North American capital markets, Synallagi replaces the failed doctrines of “building balance sheets” and “putting cash in the ground” that have characterized the industry’s muddle through strategy.

This approach is appropriate to a capital-intensive industry. In such an industry, it is reasonable to conclude that a substantial portion of the goods and services purchased are capital in nature. Those costs should therefore be passed through to the consumer. Under that framework, cash previously absorbed by capital programs is returned to the producer for repeated reuse. That is a material departure from current practice, where capital is often recovered over decades. People, Ideas & Objects believe North American capital markets are now effectively requiring return of capital in roughly thirty months, and oil & gas should be competitively aligned with that commercial standard.

When combined with Synallagi’ price maker strategy, this capital treatment would generate a materially stronger cash position. As capital costs are recognized and passed through to the consumer, previously committed cash is restored to the producer and becomes available for redeployment.

These elements represent only part of the broader method through which People, Ideas & Objects generate value through Synallagi. At its core, Synallagi is a business system designed to provide the most profitable means of oil & gas operations. These are not technology-led changes in search of a purpose. They are business problems resolved through Information Technology.

When People, Ideas & Objects first published Synallagi’ value proposition, the reaction was severe. Our reputation took a substantial hit and, at the time, we were treated as a laughing stock. In fairness, that response was understandable. The scale of the numbers appeared extraordinary. Yet the underlying assumptions were sound. Massive, industry-wide, chronic overproduction, and prolonged periods of unprofitable production, compound into extraordinary destruction of value. Equally important, the capital-intensive nature of oil & gas dominates the economics of the business. Against that reality, the industry’s attachment to “building balance sheets” and “putting cash in the ground” stood in direct opposition to commercial reasons. Those conditions were the basis on which we confidently published our now substantiated value proposition.

Six, Enablement.

Individual Artificial Intelligence gives you a tool.

Institutional Artificial Intelligence shows you how to use it.

People, Ideas & Objects have chosen to concentrate on three competitive advantages: our user community, Intellectual Property, and Research. Of these, our user community is the principal focus. It is the center of gravity in our organization. They are our customers. The rest of our effort is organized around them.

Accordingly, we are not allocating our energy to building an in-house software development capability. That work will be secured contractually through Oracle. We do not see value in entangling People, Ideas & Objects in a multi-year effort to assemble and manage a software development organization capable of meeting Synallagi’ requirements. We regard software development as an increasingly standardized commercial capability, and one that Artificial Intelligence will further commoditize. Where capability can be purchased effectively by contract.

The effort that would otherwise have been consumed building such a team is instead deployed into our user community. That distinction is important. Our user community are not employees of People, Ideas & Objects for the purpose of designing and developing Synallagi. They are independent businesses licensed to design and develop Synallagi and to own and operate service provider organizations. Their customers are North American oil & gas producers. People, Ideas & Objects retain no financial interest in those businesses beyond the issuance and control of Intellectual Property licenses.

Our user community will consist predominantly of accountants and administrators, though it must also include sufficient Information Technology capability to manage the underlying technical environment. The key point, however, is that domain knowledge comes first. The future value lies less in generic software skill than in the ability to encode business processes, operational logic, and institutional knowledge into working systems.

George Sivulka of hebia.ai made an observation that aligns closely with our own thinking. He argued that whether one calls it process engineering or the preparation of system instruction files, the future of institutional Artificial Intelligence will require an industry dedicated to encoding firm processes into agents and carrying out the change management required to put those agents into operation. He further argued that process engineering may become one of the most important technology disciplines in the near term, and that in this work business and industry expertise matter more than software expertise. That judgment is highly relevant here. Domain-specific solutions require professionals who understand the business itself, the deployment environment, and the organizational changes necessary to make the system work in practice.

That is precisely the orientation of People, Ideas & Objects. We believe the best software is user driven, and that this principle applies with particular force to Enterprise Resource Planning systems. In oil & gas, implementations have historically begun with strong user participation and a stated commitment to user involvement. That commitment has often lasted only until the early budget and progress reports revealed that time and cost had been underestimated. At that point, user participation was deemed the first casualty.

People, Ideas & Objects have worked to reduce the time required for our user community to complete its work. The conceptual model of Synallagi is highly intuitive. The seven Organizational Constructs give industry participants a built-in understanding of how activities are organized and why they are performed as they are. Synallagi has also been present in the market for more than a decade. People have had time to consider it. It is not appearing without context. It has been absorbed, debated, and reflected upon over time.

At the same time, we are not constrained in software development capacity. Oracle and its associated capabilities provide a practical path to delivery. This is not an argument for celebrating their consultants as such. It is simply recognition that large-scale projects have been completed successfully before, and that People, Ideas & Objects do not need to vertically integrate software development capabilities in order to move Synallagi forward.

The more important question is whether this opportunity has real value for our user community members. I began Synallagi with the objective of resolving the overproduction problem in oil & gas through the Joint Operating Committee. From that starting point emerged a larger commercial opportunity: ownership of a licensed process within an Enterprise Resource Planning system designed specifically for oil & gas; a compensation system oriented toward performance and innovation; and a business model in which value delivered to producers is translated into recurring and increasing monthly income.

That is not a conventional employment proposition. It is a 21st century marketplace opportunity our user community members must consider. 

Seven, Unprompted 

Individual Artificial Intelligence responds to human prompts.

Institutional Artificial Intelligence acts unprompted.

In Synallagi, this distinction is decisive. The objective is not merely to place smarter tools in the hands of users. The objective is to construct an institutional environment in which action can be initiated, coordinated, and completed within defined authority, without waiting for continuous human prompting. In that sense, unprompted action is not an incidental feature of the system. It is one of the governing design principles of Synallagi. Markets as an Organizational Construct of Synallagi will ensure producers will be dynamic, innovative, accountable and profitable. That is what we are designing in the rebuilt culture of reserves preservation, performance and profitability. 

21st Century Marketplace Vision - Our User Community - Part XIII

 hebia.ai Seven Pillars of Institutional Intelligence (Part I)

As Artificial Intelligence moves from individual productivity tool to institutional operating force, the central issue is no longer whether it can improve output. It can. The more consequential issue is whether firms possess the structure, discipline, and governing architecture necessary to coordinate that output into coherent institutional performance. This is the issue addressed by hebia.ai founder and Chief Executive Officer George Sivulka in a speech describing the firm’s offering and approach. It is also an issue directly relevant to Synallagi, whose architecture is concerned not with isolated gains in productivity, but with the coordination of work, authority, accountability, and value creation across oil and gas. The academic research in this paper's Appendix III is retrospective and hebia.ai analysis is prospective.

The following observations arise from notes and text taken from that speech. Quotations are presented in indented italics.

One, Coordination

Individual Artificial Intelligence creates chaos.

Institutional Artificial Intelligence creates coordination.

hebia.ai describes this framework as its Seven Pillars of Institutional Intelligence. The point is particularly relevant in the context of Synallagi, which defines oil and gas culture through its Seven Organizational Constructs. Among those seven are Information Technology and Intellectual Property, each of which stands as a distinct construct in its own right. Artificial Intelligence is properly understood as a subset of Information Technology. In that respect, Mr. Sivulka’s remarks are useful because they sharpen our understanding of how institutional coordination is either strengthened or undermined through the design and use of technology.

What he describes is directly relevant to those working in industry today. It is also consistent with what we see on the ground. Artificial Intelligence is increasing the productivity of individuals, while at the same time chipping away at the coherence of firms by bypassing established process discipline and organizational structure. As Mr. Sivulka states:

Individual Artificial Intelligence output circumvents the formal organizational chart and thereby compromises its efficiency.

That observation is of considerable importance. Coordination is critical not only for human participants, but also for Artificial Intelligence agents. Institutional intelligence, if it is to become operationally meaningful, will give rise to what may be described as an agentic management industry focused on defining roles, responsibilities, authorities, and methods of communication for both people and agents alike.

Unfortunately, oil and gas is not yet in a position where institutional coordination through Artificial Intelligence can achieve what is required. First, it cannot yet reliably resist the circumvention caused by individual use of Artificial Intelligence. Second, producers do not possess an Enterprise Resource Planning foundation that offers a coherent alternative. As we have noted repeatedly, officers and directors have deliberately built an unaccountable accounting, Enterprise Resource Planning, and reporting foundation across the industry. They did so by allocating only a fraction of the minimum resources required to develop the capacities and capabilities necessary to account properly for oil and gas activity. The likely result is an industry populated by individuals who are increasingly productive in isolation, yet organizationally uncoordinated and operationally inefficient.

More and more, it is becoming accepted that internal remedial efforts aimed at correcting these cultural and organizational failures are the wrong approach. People, Ideas & Objects has therefore been structured on the basis of a wholesale, industry-wide rip-and-replace implementation methodology. In our view, that is by far the most efficient and effective path available.

We continue to see the industry’s leadership as embodied in its officers and directors. It is that leadership group which has caused the broad damage that has destroyed the industry’s value. We now see signs not of correction, but of capitulation: responsibilities are being abandoned, core issues remain unresolved, and attention appears to be shifting away from North American shale toward the bright lights of Argentina, Libya, and Iraq. That pattern reflects the same familiar herd mentality, or institutional imperative that has repeatedly displaced disciplined judgment.

Synallagi addresses this issue through a different institutional design. It uses Intellectual Property as a coordinating mechanism within the Targeting Framework and within the transaction management architecture of Autonomous Asynchronous Transaction Orchestration. This paper, which focuses on our user community, together with our next paper, which will address their service provider organizations, deals with the implementation of that Targeting Framework. It is within that framework that Artificial Intelligence is used to administer the Autonomous Asynchronous Transaction Orchestration of the marketplace.

The significance of this point should not be understated. The challenge facing oil and gas is not whether individuals can become more productive through Artificial Intelligence. That is already occurring. The challenge is whether that productivity can be institutionally coordinated into a disciplined system of execution. Without that coordination, increased individual capability will simply intensify fragmentation, reduce accountability, and widen the gap between effort and performance. With it, however, Artificial Intelligence can become part of a governing structure that strengthens profitability, control, trust and execution across the industry.

That is where Synallagi differs. It does not treat Artificial Intelligence as an isolated tool. It places it within an institutional framework defined by Information Technology, governed through Intellectual Property, and executed through the Targeting Framework and Autonomous Asynchronous Transaction Orchestration. The work of our user community, and of their service provider organizations, is therefore not merely technical. It is organizational, cultural, and economic. Their role is to implement a structure through which Artificial Intelligence becomes a coordinated institutional capability rather than productive disorder.

Two Signal

Individual Artificial Intelligence creates noise.

Institutional Artificial Intelligence finds signal.

If coordination is the first institutional challenge created by Artificial Intelligence, signal is the second. The problem is no longer access to machine-generated output. That is now abundant. The problem is whether institutions possess the structure necessary to distinguish what is useful from what is merely voluminous. In that respect, the issue is not generation, but selection. Not speed, but judgment. Not output, but signal.

There are now many uses of Artificial Intelligence in commerce. Yet none of them are embedded within, and autonomously governed by, an Enterprise Resource Planning system in the manner required for disciplined industrial execution. Synallagi is designed to provide that missing structure. It establishes the automation and autonomous administration of transactions within the marketplace of North American oil and gas. In doing so, it removes much of the human role from routine transaction processing and relocates responsibility to the architecture, design, implementation, and accountability framework governing those transactions and their reporting environment. That environment is what we define as the Targeting Framework.

This point is becoming increasingly important because much of what Artificial Intelligence now produces is not signal, but noise. The volume of artificial output has grown so rapidly, and degraded so visibly in quality, that some organizations are now overcorrecting and seeking to prohibit Artificial Intelligence output altogether. That response is understandable, but wrong. The real issue for any serious institution is not whether to ban Artificial Intelligence, but how to generate, identify, and select the right thing within a controlled framework of execution.

Synallagi addresses that problem through what it defines as a Task and Transfer Network. This is a method of design analysis used to determine how transactions and process management should be organized. Its purpose is to identify the most efficient point at which responsibility for a task should transfer to a new role. That analysis is then used by our user community to define the processes they manage and to guide the design and development of the Synallagi software. The objective is to decompose industry work into the most efficient hyper-specialized division of labor possible. From that point forward, automation, and where appropriate Autonomous Asynchronous Transaction Orchestration, manages the transaction, the related processes within a Synallagi, the full set of transaction components.

This is the practical difference between generic Artificial Intelligence use and Synallagi’s institutional design. Synallagi is Artificial Intelligence-enabled transaction processing grounded in industrial design, architectural analysis and ERP. It is not the casual application of tools to isolated tasks. It is the structured redesign of transaction execution itself.

That distinction matters because people are not naturally motivated to remain involved in transaction processing at the level demanded today. They know there must be a better method. Increasingly, they turn to available Artificial Intelligence tools to improve their own productivity, often at the expense of organizational coherence and control. In other words, the institution loses signal precisely when the individual appears to gain efficiency.

The consequences for oil and gas are clear. Without institutional redesign, the producer firm, the Joint Operating Committee, and Markets will be overtaken by a level of transaction speed, volume, and complexity that exceeds ordinary human comprehension. Under those conditions, effort will continue to rise while control deteriorates. Synallagi is designed to prevent that outcome. Through the Task and Transfer Network, the Targeting Framework, and Autonomous Asynchronous Transaction Orchestration, it provides the means by which signal can be recovered from noise and operational control reclaimed from disorder.

That is the underlying point. The future challenge is not simply that more transactions will occur. It is that they will occur at a granularity, speed, volume, and level of interdependence that cannot be managed through conventional administrative methods. The role of our user community, and of their service provider organizations, is therefore not merely to automate existing work. It is to redesign that work so that Artificial Intelligence operates within a disciplined institutional framework capable of identifying signals, executing transactions, and preserving accountability across the marketplace.

Three, Bias. 

Individual Artificial Intelligence feeds bias.

Institutional Artificial Intelligence creates objectivity.

Coordination is the first institutional challenge and Signal being the second and Bias the third. This issue is central to the work of People, Ideas & Objects. Cognitive bias, motivational bias, audit, and the production of standard and objective reporting are not peripheral concerns. They are among the principal issues that must be addressed if oil & gas is to be rebuilt on a disciplined and profitable basis. Rather than devoting human effort to the repetitive processing of transactions, people need to redirect their time and energy toward the continual improvement of the methods by which these attributes are achieved, measured, and enforced.

What Synallagi must establish is a standard and objective basis of accounting across the industry. The importance of this objective is not always immediately obvious. One benefit is efficiency. Once market participants become familiar with a common standard for industry accounting input and reporting, the quality, speed, and comparability of decision-making will improve. That standard cannot be arbitrary. It must rest on an accurate understanding of industry activity as interpreted and structured by our user community.

The significance of this requirement extends well beyond administrative convenience. Producers will make decisions to produce or to shut-in production on the basis of profitability as determined by this accounting and our decentralized production model. They must therefore know that the accounting has been applied in an objective and standard manner, and that it has been applied consistently. If Synallagi is used consistently across the continent, then producers can rely upon the fact that their profitability is being evaluated on the same objective basis as everyone else.

This is where bias becomes a design issue rather than merely a behavioural one. Cognitive and motivational biases, among others, must be addressed during development and implementation so that undesirable characteristics are not designed into the system, amplified by it, and then normalized through repeated use. The point is straightforward. If this effort were initiated from the inherited structure of a single major producer’s Enterprise Resource Planning implementation, such as Exxon or Chevron, would anyone seriously dispute that a built-in bias would follow from that starting point? The answer is obvious. A system intended to govern an industry cannot begin from a narrow institutional bias and still claim to be objective.

For that reason, we have discussed on several occasions an enhanced role for public auditors in the development of Synallagi. Audit firms will be able to establish their own user community and service provider organizations for the implementation and management of audit controls, or for the creation of autonomous audit processes operating within Synallagi’s Enterprise Resource Planning environment. That is not a peripheral possibility. It is one of the ways objectivity can be institutionalized rather than merely asserted.

It is also here that George Sivulka raises a particularly relevant form of bias created by contemporary Artificial Intelligence tools. He notes that a new problem has emerged in place of the earlier debates over sociopolitical bias. The issue is now one of excessive agreement.

A new problem has taken its place. But this level of agreement, of over alignment, on everything has become comically bad. It's become a meme in its own right. Clauds, reflexive, you're absolutely right. Regardless of whether or not you are, in fact, absolutely right. This sounds harmless. It is not. The loudest AI advocates inside many organizations may soon be the historically worst performing employees. Think about why. Organizations' worst employees, who receive little to no positive reinforcement every day, will soon have AI agreeing with them. They will whisper to themselves, the smartest intelligence that has ever existed agrees with me. My manager is wrong. This is intoxicating. It's also organizationally toxic. This highlights something important. 

This highlights the deeper issue. Individual Artificial Intelligence productivity tools tend to reinforce the user. In reality, the most important thing to reinforce is the truth. Over long periods of time, organizations have evolved structures intended to counter exactly this problem. In oil and gas, the Joint Operating Committee has developed as one such structure. Its evolution reflects the ownership requirements of the partnership framework and the need to achieve financial consensus among the partners. People, Ideas & Objects regard that as the dominant culture of oil and gas, and it is one of the reasons the Joint Operating Committee remains the key Organizational Construct of Synallagi’s design.

Organizations rarely fail because people lack confidence. They fail because no one is willing or able to say no. Institutional AI must play that role. Thus, the most important agents inside organizations will not be yes men, but disciplined no men, that interrogate reasoning, surface risks, and enforce standards. Some of the most consequential future applications of AI will be built around institutional constraints. AI board members, AI auditors, AI third party testing, AI compliance, and many more. 

That is where Synallagi differs. It does not seek to use Artificial Intelligence to magnify subjective preferences or accelerate institutional drift. It is designed to embed objectivity within the structure of accounting, reporting, control, and transaction execution. The work of our user community, and of their service provider organizations, is therefore not merely to make work faster. It is to ensure that the standards governing work are objective, consistent, auditable, and resistant to the biases that individuals, firms, and software systems otherwise tend to reinforce.

21st Century Marketplace Vision - Our User Community - Part XII

Comparing Our User Community to Today’s Overhead Structure

People, Ideas & Objects has raised the industry’s overhead problem many times. We have documented it extensively. At one stage, we also identified capitalized interest and stock-based compensation as costs receiving similar treatment. Notably, interest and certain related costs were later removed from this reporting method under discussion and, soon afterward, from broader industry practice. We first noted this development on our blog on November 10, 2008.

What remains materially unchanged in 2026 is the capitalization of overhead. Why has gross overhead continued to be reported in the same manner? The discussion that follows suggests this is one of the principal mechanisms through which cash continues to bleed from the industry and their accountability reporting distortions continue to persist.

The relevant question is why capitalized overhead has not been corrected. Is there a specific intent behind the desire of officers and directors to continue reporting overhead in this manner? If so, what is that intent? Why has it persisted? And why were some related costs remedied while overhead remains untreated eighteen years later?

People, Ideas & Objects maintains that, under Synallagi, our user community and their service provider organizations would operate at single-digit percentages of today’s fixed gross overhead. If there is a chronic and systemic source of overproduction in oil & gas, it lies in the fixed gross overhead carried by producers. That is where the problem begins to reveal itself. Capitalization is the mechanism that makes the issue less visible. It creates a distinct cash flow problem while also distorting reported financial performance.

The argument begins with two observations.

• First, overhead costs at any point in time amount to roughly 10 to 20 percent of revenue.
• Second, at any point in time, approximately 85 percent of gross actual overhead is capitalized.

A related issue concerns overhead charged to Joint Operating Committees. Those charges are based on estimates agreed through the Council of Petroleum Accountants Societies. In the broader industry picture, those overhead allowances are effectively zero. Any amounts charged are earned by the operator. Any net recovery merely reduces post-capitalization overhead costs. Under Synallagi those overhead allowances are replaced by the actual, factual overhead costs.

The core issue is straightforward. When overhead is capitalized, those costs are recovered over the life of the reserves. Producers allocate capital costs across all proven reserve volumes reported by their independent reservoir engineers. The cash spent on overhead in a given month is therefore returned in small increments each month over the life of the property.

That creates a structural cash problem. Each month, each producer must find new cash to fund the next month’s overhead. No cash float is created because overhead is not priced into the commodity, is not passed through to the consumer, and is therefore not returned to the producer in the current month to fund the next month’s overhead.

The materiality of overhead in oil & gas therefore creates a persistent drain on cash. This was masked when investors were subsidizing the majority of producer capital expenditures, which included capitalized overhead. Once that support disappeared, producers turned after 2015 to every available source of capital to sustain operations and overhead.

Today, with working capital diminished and in many cases negative, producers are financially and operationally impaired. They are barely able to fund the capital spending required to sustain production. Each year becomes more difficult as their competitive position depreciates further. Their prior conduct toward the service industry has compounded the damage, leaving trust, motivation, capacity, and capability far below what the service industry now requires.

People, Ideas & Objects therefore asks why a policy that has been in place for decades, and that is demonstrably destructive to producer cash requirements, has remained unchanged after more than a decade of industry discussion. What is it about capitalized overhead that makes it so necessary?

For all practical purposes, capitalized overhead has been a root cause of the loss of support for producer capital structures. That loss of support began in 2015, when investors withdrew because of poor performance and a fundamental lack of accountability. Nothing meaningful has been done to address either issue. How, then, does this critical cash problem remain in place in 2026?

There must be some continuing intent, motivation, or institutional desire to preserve the practice despite the absence of liquidity, the loss of capital structure support, and the existence of alternatives such as Synallagi.

This leadership has taken shale, one of mankind’s greatest endowments of wealth, delivered to the greatest economy known to man, and for the sake of whatever remains concealed in overhead accounts, destroyed its present value.

Our User Community Leadership

To date, we’ve described our user community roles in practical terms: architect, design, develop and collaborate with the full support of Oracle’s developers, implement defined processes across the industry, maintain and update those processes continually, and manage resulting data flows through their service provider organizations. That description, while accurate, understates the responsibility.

In the environment outlined in this paper, our user community will be responsible for ensuring that Synallagi with Autonomous Asynchronous Transaction Orchestration performs as intended—structurally, reliably, and at scale. That includes the disciplined implementation of autonomy and automation. It is not symbolic participation; it is operational stewardship.

This framework will not appeal to everyone. It is designed to attract those prepared to assume leadership and responsibility in a system defined by producer accountability and profitable performance. For those who recognize the opportunity as our user community member, the time to evaluate Synallagi—identify your focus area in development, implementation, and ongoing management through your service provider organization—is now. 

The structural issues within the industry persist. At the same time, individual professional roles are being reshaped by forces that are both promising and destabilizing.

We do not claim to possess every answer. What we have done is approach the problem with deliberate intent: to define a clear boundary between what machines do well and what humans must do well. That division of labor is foundational. And leadership comes from our user community members as the decision maker and leader of their domain of process management. 

Computers have always excelled at process management and storage. Their strength lies in executing defined logic at scale, without fatigue or deviation. Claims beyond that capacity remain aspirational and, at present, structurally unsupported.

Human capability, by contrast, resides elsewhere. The future of meaningful work will depend on the following competencies and capabilities:

• Applying Artificial Intelligence responsibly and strategically
• Automating business processes
• Adaptability
• Using conflict and contradiction as analytical tools
• Creativity
• Collaboration
• Decision-making under uncertainty
• Integrating tacit knowledge with explicit system knowledge
• Design
• Specialization and division of labor
• Financing and capital allocation
• Generating and refining ideas
• Innovation
• Integration across disciplines
• Identifying and resolving issues
• Exercising judgment in an Artificial Intelligence-driven environment
• Leadership
• Maintaining independence
• Negotiation and compromise
• Planning
• Extracting measurable performance
• Quality management
• Reasoning
• Research
• Resilience
• Spontaneity
• Structured and critical thinking
• Tacit knowledge
• Timeliness
• Vision and disciplined observation
• Wisdom derived from experience

Each of these attributes represents a meaningful dimension of professional contribution. Artificial Intelligence should not diminish them; it should elevate them. In effect, these are the competencies that define the future of human work—and they are precisely the attributes required within our user community.

Fortune Favors the Prepared

Our discussion to this point has largely reviewed the development of our user community. In its structure, configuration, compensation, role, and general design, we remain consistent with what has been stated in the past, most notably in Our User Community Charter. The section on Intellectual Property has been strengthened for clarity and legal precision, and that process of refinement will continue. We now turn to the changes required to recognize the expanded meaning of the transaction in the form of a Synallagi, together with the developments in Artificial Intelligence, crypto, stablecoins, and the broader global transformation now underway in the business and technical environment. Our purpose is to establish our user community on a foundation capable of supporting producer needs at commercial release and of sustaining that position thereafter on a continual basis. And how appropriate our user community is for this developing environment. 

It is useful at this point to present a vision of what the future may look like. To do that, we first need a framework for how that future appears today. People, Ideas & Objects have always approached oil & gas issues from a business perspective, and we continue to do so. We have no desire to entangle ourselves in the commodity businesses of hardware or software. We see ourselves filling the gap between oil & gas and Information Technology. Effectively communicating with both sides. Our choice has been to compete through three distinct competitive advantages: our user community, Intellectual Property, and Research.

The underlying purpose of Synallagi is to create value for oil & gas producers through organizational design. Any attempt to design, define, and support efficient organizations without Information Technology is now untenable. It is precisely in this area that People, Ideas & Objects have demonstrated an unusual capacity over many decades to identify and resolve oil & gas issues. To extend that capability throughout Synallagi is not incidental. It is a central objective.

Within Information Technology itself, Artificial Intelligence, blockchain, stablecoins, and crypto are converging in a way that will make organizational performance and efficiency exceed anything previously imagined. The consequence is that the removal of human beings from routine, repetitive, day-to-day tasks will not be a luxury, it will become a necessity. In many cases, human intervention will create more harm than benefit. The architectural design and process management embedded in Synallagi must therefore become the mechanism through which compliance, governance, accountability, security, control and trust are maintained.

Building a business that sits at the intersection of oil & gas and Information Technology in the early part of the 21st century places our prospective user community members in a strong position to realize substantial income and long-term value creation. Whether that value arises through revenues earned directly within our user community or through their service provider organizations they establish, the upside is not yet fully defined. Our user community is the place where the principles, structures, and methods of these organizations are conceived and governed. Their service provider organizations are where those oil & gas administrative and accounting principles are executed in practice.

The transition between today and that future need not introduce undue risk for those presently working in the industry. Individuals who are already established in oil & gas administration or accounting have made a lifelong professional commitment and investment. That is not something one abandons lightly for a new opportunity. The ideal position is to maintain that career while evaluating the Synallagi opportunity in parallel. At the outset, there should be no need for a full-time commitment to our user community. Only when time and commercial demands make the issue unavoidable does the individual need to decide whether to commit fully to Synallagi or remain on their prior career path.

There is therefore no reason for unnecessary risk to attach to a prospective member’s decision to engage with our user community. There will, of course, be incidental costs associated with establishing a white-collar, service-oriented business, but those costs are part of the ordinary investment involved in forming a firm. The more serious risk is career risk, and our priority is to preserve existing career options for potential members for as long as possible. In practice, that risk may arise simply by discussing this opportunity publicly or with individuals who cannot be trusted. We have found that People, Ideas & Objects provokes a severe and immediate reaction among the officers and directors of producer firms. They respond negatively to the mere sight or sound of the project. For that reason, anonymity is not a preference. It is a necessity and a priority. Therefore our recommendation is to approach this opportunity from the point of view of incurring no risk and that… 

Fortune favors the prepared.

Let that be the guiding principle for the foreseeable future.

21st Century Marketplace Vision - Our User Community - Part XI

Our User Community Sources of Revenue 

Our user community members are independent businesses operating within North American oil & gas through advanced Information Technology in an Enterprise Resource Planning environment. Within that domain, there is effectively no limit to the business value they may create for producers and, accordingly, no fixed limit to the recurring revenues that may arise from that value. As our user community and their owned and operated service provider organizations are structured today, their principal sources of revenue are discussed.

The targeting framework (an introduction of which was provided in our previous paper pp. 14 - 22.) should include not only incentive mechanisms for value creation, but also formal accountability provisions designed to protect producers, Joint Operating Committees, and the marketplace from controllable non-performance. These provisions should apply only to matters that are measurable, attributable, and within the defined authority of the relevant member of our user community and their service provider organization. They should not apply to matters outside that party’s licensed scope or reasonable control. Where there is a clear failure in performance, compliance, documentation, support, control integrity, implementation quality, or other obligations within the relevant domain, the first remedy should ordinarily take the form of a reduction, deferral, suspension, or clawback of performance-based compensation, value-sharing, or other earned upside, rather than broad punitive sanctions. In this way, the targeting framework preserves innovation while ensuring that value creation and value protection remain inseparable.

User Community Performance Incentives
Software Development

Hourly compensation during software development.

Source: exclusively People, Ideas & Objects.

Bonuses During Software Development

Performance bonuses related to producer profitability, innovation, accountability, automation and autonomy.

Team-based bonuses related to module completion, overall completion, and team performance.

Individual bonuses related to project completions.

Source: exclusively People, Ideas & Objects.

Additional User Community Compensation

Exclusive domain rights over the operation of a defined process.

Authorized access to and use of Synallagi’s Intellectual Property.

Ownership and Operation of a service provider for the defined process.

Source: exclusively People, Ideas & Objects.

Service Provider Performance Incentives

Implementation Revenues

Initial implementation revenues and continuing implementation-related revenues. These will make up the majority of service provider hourly revenues.

Source: oil & gas industry.

Maintenance and Support Revenues

Ongoing maintenance and support services.

Source: oil & gas industry.

Dynamic Value Revenues

Recurring revenues derived from the business value created through Autonomous Asynchronous Transaction Orchestration and from software innovations developed through their user community members that may have a larger scope of application. (Subject to a 10 - 15% holdback, see Other.)

Source: oil & gas industry.

These represent the principal revenue sources available to a member of our user community by virtue of their license. They are not exhaustive. There are many areas of opportunity to be pursued, and any prospective member must consider how these or any sources of revenue may be developed within their user community organization over time.

The business scope for expanding this list is effectively unlimited. One qualifying condition under the license is that the expansion of work must remain within the defined scope of the authority granted. Most of these future opportunities will arise from further specialization and the division of labor. Within Synallagi, we define this as the search for gaps in the market offering that are not presently being served, and then filling them. Gap filling is the technical term, and it is, in the simplest sense, one of the central drivers of economic expansion over the past two and a half centuries.

User Community Performance Discipline

Disincentives and Accountability Provisions Within the Targeting Framework
The targeting framework must include not only incentive mechanisms for value creation, but also formal accountability provisions designed to protect producers, Joint Operating Committees, and the marketplace from controllable non-performance. A system that rewards value creation without addressing measurable failure would be incomplete. Value creation and value protection must remain inseparable.

Performance discipline should require our user community to prepare and submit, as one integrated specification, both the performance incentive and the corresponding performance discipline for each relevant process, function, or value stream. No incentive specification should be eligible for submission unless the associated discipline provisions have also been defined. This ensures that value creation and value protection are designed together from the outset, much as disciplined software development requires tests to be written alongside the code they are intended to validate.

These accountability provisions are not intended to discourage innovation, profitability, prudent experimentation, or the good-faith pursuit of improved methods. Their purpose is to preserve discipline, maintain trust, and ensure that authority granted within Synallagi is matched by responsibility for the quality, reliability, and integrity of the work performed.

Any disincentive structure must therefore be confined to matters that are measurable, attributable, and within the defined domain of authority of the relevant member of our user community or service provider organization. No person or organization should be subject to adverse adjustment for matters outside their licensed scope, for broader commodity conditions, or for outcomes beyond their control.

Disincentives should arise only where there is a clear and demonstrable failure in areas such as performance, compliance, documentation, accountability, support, control integrity, implementation quality, or the maintenance of service levels within the relevant process domain. Examples include persistent failure to meet agreed standards, avoidable rework caused by negligence or poor design, unresolved defects, inadequate support, breakdowns in compliance or control, or conduct that impairs the integrity of Synallagi, its Intellectual Property, or its operating method.

As a matter of structure, the first remedy should not ordinarily be punitive liability. The primary disincentive should instead take the form of a reduction, deferral, suspension, or clawback of performance-based compensation, value-sharing, or other earned upside that would otherwise arise through the targeting framework. This preserves commercial seriousness without creating a regime of arbitrary punishment that could inhibit initiative or distort conduct.

Where baseline standards have not been met, the targeting framework may also withhold certain incentive payments entirely, notwithstanding the existence of nominal gains elsewhere in the process. Innovation rewards, automation rewards, recurring value participation, and other forms of variable compensation should therefore remain conditional upon the stability, accountability, and operational integrity of the underlying process.

The objective of these provisions is not punishment for its own sake. It is the preservation of trust, fairness, and functional discipline within a highly specialized and highly distributed operating environment. In this respect, the targeting framework should be understood as a system of commercial governance. It measures not only the value created, but whether that value has been created in a manner that is sustainable, accountable, and fit for continued reliance by producers, Joint Operating Committees, and the marketplace.

Through this structure, Synallagi aligns authority, compensation, and responsibility. It rewards those who generate measurable value while ensuring that failures within Intellectual Property-defined domains of control carry direct economic consequences. That balance is necessary if the system is to remain credible, scalable, and commercially durable over time.

Other

What we know is that natural gas revenue losses incurred by the industry since the beginning of shale development now total $5.0 trillion in this century. That is the scale of the damage and destruction that current officers and directors have imposed upon the industry. On a go-forward basis (Gas to oil factor is currently 35:1), those values would be available to members of our user community who are able to implement our decentralized production model’s price-maker strategy and resolve these deficiencies. That is the scale of the industry’s present difficulty. It is also the scale of the compensation opportunity available to our user community and their service provider organizations.

People, Ideas & Objects will withhold 10 to 15 percent of the proceeds of any targeted, variable compensation paid to our user communities service provider organizations. These proceeds will fund a bonus system within People, Ideas & Objects that mirrors their own structure and aligns our staff's motivations directly with those of our user community and their service provider organizations. We will find that our leadership and all within our organization will be focused on the point of what should be all of our primary concerns. Which is our user community and their service providers interactions with producers.

Service Industry

It is here, as the final point below the “Other” section, that we arrive at the service industry. Which is unfortunate, because the subject warrants far more extensive treatment. The scale and seriousness of its issues are as comprehensive as those affecting producers themselves. These conditions were created by producers. If producers expect to retain any future capacity or capability to conduct field operations, they will need to begin rebuilding both that relationship and that industry on what is, in effect, a philanthropic basis. Accordingly, People, Ideas & Objects will publish a paper in 2026 addressing these matters directly. While reading, continue to ask oneself if the loss of natural gas revenues of $5.0 trillion may have been needed in industry.

The service industry is unique in its configuration. It extends the engineering and geological capabilities of producers into the field, providing geographic reach, technical execution, and operational capacity. It is therefore indispensable to the success or failure of any producer operation. If producers intend to meet consumer demand in North America, continuation of prior practices will no longer be acceptable. The relationship between producers and the service industry must be comprehensively reorganized.

Shale has introduced a production profile defined by demanding and distinctive characteristics. It requires costly and highly technical drilling and completion methods. It exposes dramatic volumes of petroleum reserves. It is marked by steep decline curves. It frequently demands expensive reworks, refracturing programs, or the drilling of new laterals. At the same time, the service industry no longer trusts producers and will not invest in the capacity or capabilities required under those conditions. It has endured years of delayed payment, accusations of greed and indifference, repeated exposure to the downside of the boom and bust cycle, and the forced cannibalization of fleets and equipment while producers carried on as though none of it mattered.

Oil & gas revenues support more than the personal financial comfort of officers and directors. The service industry has been central to producer success, yet it has been treated as a distant and expendable participant when the industry’s financial rewards are distributed. It is the service industry that invested, built, and maintained the capabilities producers required. For reasons that are difficult to discern, producers appear to have concluded that this was the part of the industry they could destroy most aggressively.

It is now time for this relationship to be rebuilt on something more immediate and tangible than trust alone. Trust will take too long to develop given the scale of the producers’ present difficulties. A philanthropic rebuilding of the capacity and capability they so carelessly destroyed would demonstrate real commitment. It would show that producers are putting skin in the game. Once that occurs, trust becomes secondary to evidence. Producers may then begin to treat the relationship differently because they will finally have contributed something meaningful to its reconstruction.

21st Century Marketplace Vision - Our User Community - Part X

Our User Community

People, Ideas & Objects set out a compensation plan in the January 20, 2025 paper, "Catalysts for Cultural Change: The Leadership Role of People, Ideas & Objects User Community." Which remains highly suitable for the industry's future needs. This compensation plan can be found in Appendix I of this paper. We anticipate some changes will need to be made to accommodate the Autonomous Asynchronous Transaction Orchestration of Synallagi. We feel those are best left in the hands of our user community in direct collaboration with industry. The details in terms of what those sources are can be found here.

Our user community will gain directly from their collaboration with developers. When they transition to leading their service providers, their compensation must be uniquely defined to reflect these specialized contributions. I propose that a full understanding of the dynamics and an accurate assessment of their value will only be possible after the commercial product release. Service provider fees should be structured to split the resulting benefits between the specific user community service providers' offering and the software's value proposition delivered to industry. Our user community members' motivation needs to be focused on how their process generates more innovation and profitability to the oil & gas producers, hence increasing their value proposition.

User Community Charter

We confront the reality of the North American oil & gas industry without illusion. Capital has been misallocated, profitability neglected, trust eroded across the service and tertiary sectors, and productive capacity weakened. Leadership has too often avoided accountability while value destruction accelerated and strategic control over financial resources remained opaque. The result is an industry that has compromised one of the greatest concentrations of wealth in modern economic history within a single generation.

Against this backdrop, People, Ideas & Objects user community is committed to a disciplined reconstruction of the industry. Our mandate is clear: to equip dynamic, innovative, accountable, and profitable North American oil & gas producers with the most profitable means of oil & gas operations. Profitability is not a secondary objective; it is our governing constraint and the organizing principle of all industry activity—everywhere and always.

The persistent absence of profitability has hollowed out the sector’s prospects. Shale represented an extraordinary endowment to the world’s most productive economy, yet over two decades its financial return has been structurally impaired. This outcome reflects systemic governance failures among producer officers and directors who have resisted performance transparency, avoided responsibility, and declined structural reform for decades. If the officers and directors of the producer firms are struggling to grasp the core issues of their own business, how can we realistically expect them to now comprehend the dynamics, interactions, and specific challenges associated with these new Information Technologies, particularly as applied in our Synallagi application?

Organizational reconstruction requires new leadership and new institutions. The pathway forward is defined through Synallagi, architected, designed, developed and implemented by our user community and their service provider organizations. Together, they are designing, building, and sustaining a revised industry culture grounded in resource preservation, measurable performance, and sustained profitability. This is not incremental reform; it is structural realignment.

Oil & gas delivers an unparalleled economic multiplier—10,000 to 25,000 man-hours of mechanical leverage per barrel of oil equivalent. There are no scalable substitutes capable of replacing this value proposition in the foreseeable future. Stewardship of this resource is therefore our fiduciary responsibility to future generations. Unprofitable production is waste. Waste is mismanagement. Mismanagement is a breach of obligation. 

Through the architectural design, development, and implementation of Synallagi, our user community is achieving a near-ideal position within this industry—a best-case scenario. The greatest risk is not outright failure, but falling short of the full scope of our original intention or potential achievement. My focus is on securing the necessary resources to ensure that the work of our user community is completed fully, correctly, and to the high standards they’ll establish. This perspective is echoed in a quotation from the Knowledge Project podcast.

Nonetheless our user community has the opportunity to take what is, in many respects, the absolute failure of an industry and rebuild it from the ground up, brick by brick and stick by stick.  It's all upside from here for us, considering we’re careful now. The purpose of that effort is clear. It is to ensure that producers are provided with the most profitable means of oil & gas operations, that North America remains energy independent in oil & gas production, and that consumers are supplied with abundant, affordable, domestic oil & gas. No contradictions there, just a healthy balance of conflicting objectives.

Our current state of affairs should be considered nothing less than a state of war with existing producers. What we can not do is take this situation and push too far too fast and expect to remain in control of the agenda. We’re in unseen territory as it is. My current primary concern is the maintenance of our user community members anonymity and career security. We have not begun to see these producers desire to fight. And if that’s the case we should assume they’ll have their ways to fight that are unknown and unknowable to us. Staying light on our feet and progressing forward quickly in our tasks is our best defence. What our user community has in front of them is the proverbial blank slate. Our charter below sets out an understanding of how we’ll achieve our objectives. And this 21st century vision shows the destination we’re heading to. 

Our charter is supportive and therefore explicit. Our user community exists to institutionalize these principles. It is the leadership mechanism Synallagi needs for its architecture, designs, developments and implementations; a profitable, prosperous, and resilient oil & gas industry. I present our User Community Charter. 

Purpose

It is incumbent upon our user community to provide the leadership necessary to navigate effectively and efficiently out of this crisis and toward the prosperous future that these oil & gas resources can offer. Synallagi has been specifically designed to fulfill this role. Current producer officers and directors have much to answer for: how has such a tremendous endowment of wealth been so comprehensively and swiftly diminished? In addressing this question, our user community finds its purpose.

Our user community exists to architect, design, develop, implement, govern, and continuously improve Synallagi in support of a dynamic, innovative, accountable, and profitable oil & gas industry. Its purpose is to provide North American producers with the most profitable means of oil & gas operations, everywhere and always.

Our user community is not an auxiliary feature of Synallagi. It is a foundational institutional structure through which Synallagi is defined, advanced, and sustained over time. Our user community are in fact People, Ideas & Objects customers, competitive advantage and focus.

Foundational Role

Our user community is one of the three competitive advantages of People, Ideas & Objects, alongside Intellectual Property and Research. Of these, our user community is the principal operational focus.

Synallagi is to be shaped through our user community. In that role, our user community is not merely consultative. It is the authoritative source of business direction for the processes, functions, workflows, controls, and operating logic embedded in Synallagi.

Authority

Members of our user community hold the exclusive license to prepare derivative works from the Intellectual Property of Synallagi, including Autonomous Asynchronous Transaction Orchestration.

Our user community has exclusive access to People, Ideas & Objects software developers who are licensed to seek our user community as their sole source of process, functional, and business input. This structure ensures that Synallagi develops from a single controlled source of domain authority and is not diluted by fragmented, inconsistent, or opportunistic direction.

Each member of our user community exercises authority within a defined process domain. That authority includes direction over priorities, control over budgets within that domain, and responsibility for the quality, usefulness, and commercial value of the work produced.

Scope

Our user community governs the evolution of the administrative, accounting, operational, compliance, governance, and marketplace processes embedded in Synallagi.

This includes processes relating to the Petroleum Lease Marketplace, Resource Marketplace, Financial Marketplace, Operations Management, Research & Capabilities, Knowledge & Learning, and the broader structural alignment of Synallagi with the Joint Operating Committee, markets and producer firms.

Our user community is expected not only to respond to current industry requirements, but also to anticipate future needs and prepare Synallagi accordingly.

Composition 

Our user community is composed primarily of individuals trained and experienced in oil & gas accounting and administration, supported by sufficient Information Technology capability to manage the technological environment intelligently and direct development effectively.

The purpose of this composition is clear. Business and industry expertise must govern system development. Technical work must support domain knowledge, not displace it.

Accountability

Authority within our user community is inseparable from accountability.

Each process area within Synallagi is to be attributable to an identifiable individual. Synallagi documentation shall identify the responsible author, that person’s role, and the relevant contact information for each defined process area.

Producers, service providers, and authorized users must therefore be able to identify the person with the authority and capability to evaluate an innovation, direct a correction, answer a question, or resolve an issue.

This principle ensures that neither our user community nor the developers who support them become blind, sleep-walking agents of whoever is prepared to fund the next request. Responsibility remains attached to authorship, judgment, and action.

Intellectual Property Stewardship

All work performed through our user community in connection with Synallagi must preserve the coherence, integrity, and exclusive control of Synallagi’s Intellectual Property.

Derivative works, improvements, reusable process designs, configurations, and development outputs arising from this work must remain within the controlled Intellectual Property structure of People, Ideas & Objects. Rights may be granted by license, but ownership remains centralized.

This is necessary to preserve system coherence, prevent fragmentation, and protect the long-term commercial value of Synallagi.

Intellectual Property is a constraint we’re able to place on Artificial Intelligence, Autonomous Asynchronous Transaction Orchestration or Agentic domain of operation. Constraining its authority to the limits of our user community members IP license.

Producer Interface

Producers shall have a direct point of contact for each relevant process, function, or issue within Synallagi.

That point of contact shall be the corresponding member of our user community, equipped with the authority and capability to act on innovation, resolve operational issues, and direct necessary refinement within the relevant domain.

This direct relationship is intended to compress cycle time, strengthen accountability, and ensure that producers can engage the responsible source of action without organizational ambiguity.

Economic Role

Our user community participates directly in the value created through Synallagi.

Its members are to be rewarded through structures tied to performance, innovation, profitability, accountability, automation, project completion, and other measurable contributions to producer value. In addition, members will own and operate service provider organizations under the licensing structure established by People, Ideas & Objects. Service providers will share with producers the economic value generated from their innovations, autonomous and automations developments and profit enhancing features. 

This economic design is intentional. It aligns authority with responsibility and aligns responsibility with value creation.

Standard of Conduct

Our user community is expected to act as a business leadership structure for the industry.

Its members are to exercise judgment, maintain high standards of quality, protect the integrity of Synallagi, and contribute to the reconstruction of the North American oil & gas industry in a culture grounded in reserves preservation, performance and profitability.

The standard is not passive participation. The standard is stewardship.

Institutional Continuity

Our user community, together with its service provider organizations, is intended to become the durable institutional mechanism through which Synallagi is developed, implemented, managed, and continuously improved.

This charter is therefore not simply a statement of participation. It is a statement of governance, authority, responsibility, and continuity.

Through this structure, People, Ideas & Objects intend to ensure that Synallagi endures beyond any individual author and remains capable of supporting the long-term reconstruction of North American oil & gas.

21st Century Marketplace Vision - Our User Community - Part IX

Preamble

It is rapidly becoming standard that Enterprise Resource Planning providers must compete on demonstrable value. If they cannot produce a tangible revenue stream above and beyond their cost, they will become uncompetitive in the near term. Gartner stated on April 2, 2026, that by 2028 more than half of enterprises will stop paying for assistive intelligence tools such as copilots and smart advisors and will instead prefer platforms that commit to workflow results. The same Gartner release also projected that by 2030, software companies that merely add bolt-on Artificial Intelligence to legacy applications, rather than redesigning for agentic execution, could face margin compression of as much as 80 percent. (Gartner)

Every move within Synallagi has been made with enhanced producer profitability in mind. For decades, People, Ideas & Objects have worked to enter oil & gas on the strength of a value proposition substantial enough to justify adoption. We have organized our user community as the primary vehicle for creating, developing, and implementing that value. We have equipped our user community with the authority, responsibility, capabilities, and commercial purpose through a strong organizing charter. 
Nothing will be resolved in terms of remediating the damage to industry from producer officers and directors more than generating profitability. As the primary industry producer, oil & gas producers must be profitable, everywhere and always. Synallagi provides what's needed.

Our user community is motivated through a shared bonus structure that rewards creation and development in the areas of performance, innovation, profitability, accountability, and automation during software developments. It also includes team-based incentives tied to overall project completion, module completion, and other measures intended to reinforce collaboration and coordinated execution. At the individual level, incentives include project completion rewards, exclusive Intellectual Property license domains, ownership and operation of service provider organizations. This structure is intended to align commercial upside with the creation of measurable value.

The third paper in this 21st Century Marketplace series will address our user community’s service provider organizations and will introduce a different incentive architecture. That structure will be built around Synallagi’s Autonomous Asynchronous Transaction Orchestration and automation’s architected, designed, and implemented through our user community. In that environment, people are progressively abstracted from the transaction layer of the marketplace, the producer firm, and the Joint Operating Committee. Their role shifts upward into the higher-order functions of accountability, assurance, supervision, and management.

By setting a new standard, individuals can attempt the process on a trial or part time basis and evaluate their knowledge and skills to assess their capabilities to operate within our user community and participate productively before having to fully commit. Initial prepackaged projects will be available for this purpose.

Service provider organizations (our user community) will participate in the value created for producers, Joint Operating Committees, and the marketplace. Across the industry, the aggregate yield from those benefits should be substantial, making the cost of sharing economically immaterial relative to industry’s gains produced. These benefit allocations will be governed through a targeting framework that measures value creation and records the compensation earned from it. That framework will allow both producers and our user communities to determine, in tangible terms, whether revenues and costs are being managed fairly and equitably. It will also provide an objective basis for reporting the overall performance of our user community over time, including the total benefits generated for producers, Joint Operating Committees, and marketplaces.

Our value proposition remains in the range of $25.7 trillion to $45.7 trillion over a twenty-five-year period. If value of that scale is available, why has it not already been pursued? The first reason is disintermediation. Officers and directors of producer firms are unwilling to proceed where doing so would disrupt their existing self-serving arrangement to correct what they already know is broken. People, Ideas & Objects have been unable to overcome this obstacle. 

In a recent X post on March 11, 2026, George Sivulka @gsivulka of @hebbia articulated a significant new perspective: "Productive Individuals Don’t Make Productive Firms." His commentary includes key observations such as:

Individual AI breeds chaos.

Institutional AI fosters coordination.

Contrary to the expectations of some producers—who believed we would open source the specification to limit the influence of People, Ideas & Objects—we have maintained control. We are confident they will appreciate the regulated environment that our user community can now provide under our Synallagi IP license. It is People, Ideas & Objects belief we need our Intellectual Property to define, support and constrain the work that is undertaken by Autonomous Agents. AI agents unable to expand outside of their IP driven license is a preferred methodology.

The destruction inflicted on North American oil & gas is tragic. Shale represents the greatest endowment of wealth ever placed within an industry, and to have that endowment emerge within the most powerful economy in history should have produced extraordinary results. Instead, in less than two decades, those entrusted with authority have accepted it as unprofitable, uncommercial, and incapable of generating acceptable returns. That outcome is all the more striking because many warned throughout that period that their prevailing methods were outdated and destructive. The investment community recognized the danger over a decade ago and withdrew support in order to limit its exposure and contain the scale of the damage. In that respect, the discipline imposed by investors may have prevented an even deeper collapse.

The earlier abdication of authority, responsibility, accountability, and control over industry resources has placed officers and directors in personal financial jeopardy. To persist with the same method of operation in the face of such clear damage and such an obvious need for change exposes them to even greater organizational dysfunction and compounds the failures already in evidence. Synallagi and our user community provide a means of resolving the issues identified in our March 27, 2026 paper. In practical terms, they offer a path by which those officers and directors may withdraw from this destructive position without further deepening the liabilities they would otherwise continue to incur.

Executive Summary

The preamble establishes the central theme of this paper: the business opportunity available to administrative and accounting professionals in North American oil & gas. These professionals can participate directly in rebuilding and reconstructing the industry’s culture around reserves preservation, performance and profitability. Their participation in our user community is instrumental to implementing the standards, expectations, aspirations, capabilities and authority required to achieve that outcome. Through our user community, they can establish their own organization, apply their oil & gas knowledge and contribute directly to the development of Synallagi.

The paper then turns to the configuration of our User Community Charter. It describes the business opportunity available to our user community, the revenue model supporting it and the work required to make it operational. It also addresses the critical role of Intellectual Property in the future of work and its application within our user community charter. The motivation of our user community must remain focused on providing for the most profitable means of oil & gas operations. In the Artificial Intelligence era we are entering, “blind, sleepwalking agents of whomever will feed them” is no longer acceptable. Our user community is business-focused, action-enabled and accountable.

The paper also details the multiple revenue streams available to our user community members and to the service provider organizations they own and operate. These revenue streams provide the foundation for developing businesses around Synallagi and oil & gas. Our user community also serves a critical bridging role between Information Technology and oil & gas, connecting software development capability with industry-specific administrative and accounting knowledge.

A historical review of the distinction between markets and firms is then undertaken through the work of Professors Elinor Ostrom, Oliver Williamson and Ronald Coase. The objective is to establish that transactions should occur at the lowest point of transaction cost. For the last century, hierarchies largely prevailed over markets. In the 21st century, however, stablecoins, crypto, Information Technology, Artificial Intelligence and other supporting institutions are creating a revolutionary dynamic in favor of market selection. This discussion is contained in Appendix III.

In a brief twenty-minute presentation, George Sivulka of hebia.ai outlines the Seven Pillars of Institutional Intelligence. People, Ideas & Objects has integrated these pillars into Synallagi as the Artificial Intelligence framework within our Information Technology Organizational Construct. This paper reviews these concepts for our user community to provide a foundation for discussion and to guide their development efforts. While the academic analysis in Appendix III examines the historical relationship between markets and firms, the hebia.ai Seven Pillars provide the forward-looking Artificial Intelligence perspective.

For our user community, Intellectual Property is foundational. As a licensee of Synallagi, our user community acquires a secure platform on which to build its organization. Intellectual Property is also an Organizational Construct of the software. It supports, defines and constrains the boundaries of each exclusive process domain. Those boundaries, in turn, constrain the environment in which Artificial Intelligence operates. Artificial Intelligence is the killer application for Intellectual Property. Our user community and its service provider organizations will operate with these advantages.

Throughout its work, People, Ideas & Objects has maintained that the oil & gas industry has been pursuing a destructive business model and strategy. That model would inevitably cause the industry to suffer. The consequences, however, extend beyond the industry itself. The societal dependence on oil & gas is far larger than the balance sheets of producers.

Warren Buffett’s description of the “institutional imperative” is directly relevant. He observed that rationality frequently collapses when managers mindlessly imitate the behavior of their peers or when the leader’s preferred business craving is supported by internal studies, regardless of its merit. People, Ideas & Objects have made this argument consistently. Synallagi provides every producer with the means to produce most profitably. Once that level of performance is achieved, each producer is endowed with the resources necessary to pursue its own independent strategy, lead its own firm and compete on its own merits. The industry’s repeated shifts from shale, to clean energy, back to shale, then consolidation and now international expansion are indicative of Buffett’s institutional imperative.

The industry now lacks the capacity and capability to conduct operations at the scale necessary to sustain productive deliverability. There is also an unwillingness by many parties to engage with North American producers for standard business activities while current leadership remains in place. Yet officers and directors continue to suggest they can resume prior production volumes, and they have convinced politicians and the public of that claim. This creates the conditions for industry damage to escalate into a broader societal disaster for North America. We have reached critical points in reserves deliverability before. We have not, however, reached them with shale representing the largest share of productive capacity. Avoiding that outcome is the purpose of People, Ideas & Objects’ work.

It is one thing to criticize the current structure. It is another to offer a solution. Our user community, its service provider organizations, Synallagi and People, Ideas & Objects are components of that solution. Together, they address the administrative and accounting failures that have had a detrimental financial impact on the industry. Through administrative and accounting reorganization, overhead costs can be converted into variable costs based on profitable production. Our user community and its service provider organizations represent a reallocation of resources away from producer-owned overhead structures and toward specialized, market-based process organizations. Each service provider can manage a defined process on behalf of the oil & gas industry, benefiting from advanced specialization and division of labor.

This structure does more than convert overhead into variable cost. It also enables the sharing of Cloud Administration & Accounting for Oil & Gas software and services across the industry. This eliminates the need for each producer to build and maintain the same non-competitive administrative and accounting infrastructure as every other producer. The benefits of competitiveness, specialization, division of labor, shared infrastructure and variable overhead are significant. Yet they are secondary to the larger advantage: the ability of our user community to produce standard, objective, factual, high-quality and accountable reporting for each and every Joint Operating Committee.

Appendix II extends the Material Balance Report example introduced in our March 27, 2026 paper, 21st Century Marketplace Vision for Oil & Gas — Issues, and its related podcast. That paper discussed the influence of automation on the overall Material Balance Report and, specifically, the Systems Balance. This paper extends that work by addressing the autonomous elements of the Material Balance Report and their involvement in producing the report. It also includes a brief discussion of the Material Balance and Partnership Balance components of the Material Balance Report.