The mechanism that the users have to make this change is detailed in the user community vision. The mechanism itself is the Intellectual Property that is contained within the Preliminary Specification and any of its derivative works. When change needs to occur within the industry it will be the user community that has the capabilities to make the changes to the Intellectual Property. The People, Ideas & Objects software developers will only look to the user community for their development direction and details. They take orders and directions from none other than the user community. If a producer wants to see a change in the way that the system operates within their firm, it is the user community that they will need to discuss this with. No one else has the power or capabilities to make any changes to the Intellectual Property or to the software code itself. Only the user community.
It is the user community participant that is also the principle in the sub-industry of service providers that is being created. The service providers are the replacement organizations to the producers current administrative and accounting resources. In the environment where the Preliminary Specification exists, the prototypical producer is reduced to the C class executives, the earth science and engineering resources, land, legal and some support staff to enable their focus on their key competitive advantages of their earth science and engineering capabilities, and land and asset base. The service providers will focus on a specific process and have the entire industry as their client base. Therefore focusing on their competitive advantages which include the principles of specialization, the division of labor, automation and many others. It will be through this window of their service provider operation that the user community participant will see the actions and interactions of the producer firms. It is the service provider who is the ultimate user of the software that they have developed in the user community. And they will be able to bring new value and efficiencies to the dynamic, innovative and profitable oil and gas producers.
It is this ecosystem of our software developers, the user community participants and the service providers that will provide the means in which the oil and gas industry has their administrative and accounting needs handled. This will be an industry wide administrative and accounting based capability. Freeing up the individual producers from having to develop the administrative and accounting capabilities themselves. Consider that today, each producer has to develop their administrative and accounting capabilities in order to function in the industry. Each producer replicating the same administrative and accounting capabilities as each of the other producers. Yet none are able to share these capabilities in the current environment. This inability to share these capabilities is a major impediment to the profitability of all producer firm’s today. It will become an even more difficult impediment in the future as the government regulations and requirements continue to expand.
It is this industry configuration that provides the producer with the flexibility in terms of their production deliverability. If a property isn't profitable at the current commodity price the producer can shut it in. And in so doing they will reduce their operating costs, royalties and the overhead costs of their operations. That is because none of the service providers will receive any of the input variables from a shut-in property. Therefore they will have no work to conduct on that property and hence no billing will be generated to that producer for that property. Enabling the producer to realize a null operation, which will increase their firm's overall profitability. It will also save their reserves for the day in which they can be produced profitably. It removes the marginal production from the commodity marketplace, placing upward pressure on prices. And keeps the capital costs of their reserves lower, as a result of not having to add the losses on operations that otherwise would have occurred.
The user community is the critical resource that enables the business model of the oil and gas industry to be employed and deployed. If changes are required it will be able to implement them. This is what the industry needs for the 21st century. The capacity for change. With People, Ideas & Objects we provide a software development capability that includes the user, the service providers and that critical capacity.
The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative, profitable and successful means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here.