Chronically overwhelming the market with oil and gas is the characteristic that we are presented with as a result of the operating strategies of the existing producers and shale based reservoirs. With shale we move from scarcity to abundance in terms of the oil and gas commodities. There will now always be the capacity and capability to overwhelm the market with more supply than there is demand. This will be the case for the foreseeable future, which brings a new dynamic to the oil and gas industry. Managing on the basis of scarcity is no longer valid. Managing on the basis of a fundamental misunderstanding of what markets do, is no longer valid. The need for producers to listen to market signals to determine if a property produces or remains shut-in is what is necessary for the industry to move out of the current boom and bust cycles, and chronic malaise that it finds itself in.
The Preliminary Specifications decentralized production model uses our price maker strategy to enable the producer to make this change to the shale based era. Using a detailed, actual accounting of the property the producer can determine if it’s profitable and if so maintain production for another month. If it’s unprofitable the property is shut-in and the reserves are saved for a time when they can be produced profitably, the producer only produces profitable properties therefore their earnings are not diluted by unprofitable properties and the commodity markets find their marginal costs.
It is on this basis that the startup oil and gas producer will be able to assure their investors that they’re providing them with the most profitable means of oil and gas operations. How they’ve gained the production discipline to ensure that the disaster that is the oil and gas industry today isn’t repeated again and again. That their producer is being treated fairly and equitably in the marketplace through a production allocation methodology that is based purely on the properties profitability. This is how markets work and the startups investors will know that they have the ability to earn profits all the time that they are invested in the oil and gas startup. That they won’t be subject to the boom and bust cycles that have become the accepted norm and are more destructive than any productive activity. That their producer is wholly focused on profitably, delivering all of the upside that this transition to a new profitable oil and gas industry promises. Upside that includes the ability to affordably acquire the producing infrastructure from the existing producers. Realize the People, Ideas & Objects value proposition which is valued in the trillions of dollars. And then profitably provide energy independence to the North American continent.
When the industry is operated on the basis of the Preliminary Specification everything is fundamentally changed. We are relying on creative destruction in order to implement our technology due to the extent of changes within the producer and industry. Changes which are too significant for them to undertake in the normal course. There is too much cultural inertia to overcome within the current producers for us to be successful. The current producers have permanently destroyed the industry that existed just a few years ago. Most if not all of the producers have experienced financial difficulties of catastrophic proportions. If these carcasses appeal to the investor then we have nothing for them. If a fresh start is what appeals then we have the Preliminary Specification.
The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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.