If you’ve been reading this blog for a while you know I appreciate the work of the oil and gas bureaucrats. I won’t go into their many deficiencies but will point you to this blog's long history on the topic. I’ll assume instead that you are that leader who is tired of the status quo, who is concerned about the state of the industry and the lack of action by the bureaucrats. If you are, this is the place you want to be. We have 5,000 man years of work ahead of us in developing the Preliminary Specification and moving the industry onto a commercial footing. And that is just the software development portion of the task that we are undertaking. Leadership everywhere and at all levels of the industry is going to be demanded to fix “this.”
The other day we talked about the Leadership teams within People, Ideas & Objects and our user community. These are the leadership positions that are necessary for just the software development, and only those that can be clearly identified at this time. There will be many more as we proceed. Those members of the user community, the 3,000 people we’re looking to provide our software developers with the precise details of how it is the oil and gas industry operates. These are leadership positions as well. The user community member will have to know what it is that is necessary to make the Material Balance Report everything that it could possibly be. For example. And have the resources within the industry to verify that information. Our user community is the critical element of our softwares ultimate quality. Their leadership will be something that we will be looking for them to provide.
The secondary role the user community member fills is that of the principle in the organization that will be developed to provide the People, Ideas & Objects software and that organization's services to the producers. Our “service providers” will be established by the user community members who will own and operate them. They will be the ones that lead these organizations and develop the service based organizations that the producers will need in the new industry configuration that is required to provide our price maker strategy. Recall the service providers will be providing the entire oil and gas industry, as their client base, the process management of one individual process. This may seem like an onerous data driven task that would be monotonous and boring to undertake. I disagree, this will be a dynamic and exhilarating place to work. The competitive advantages of the service providers are their automation, specialization and division of labor. With the access that the service providers principle, the user community member, has to People, Ideas & Objects software development capabilities. The service providers will be able to iterate and constantly improve the software they use, and their service offering to the producers, both in terms of their speed and quality. Service providers will undertake all of the industries administrative and accounting capabilities. There is movement away from each producer developing their own similar, redundant administrative and accounting capabilities that are not shareable or usable outside the producer firm. It is this overhead that is also inhibiting profitability in the industry.
Again we have only touched on the leadership that will be necessary in the software and services areas as a result of the changes that will be instituted by the Preliminary Specification. The producers themselves will be going through a process of rapid change as well. Leadership will be needed to see them through the changes that will be made through this software and service development process. A leadership team to match the activities occurring in the People, Ideas and Objects software development, our user community and service providers. Investors and bankers will be taking a different attitude towards investing in oil and gas. It will be a while before they come back. That is, they will not be back until we can prove that the industry is consistently profitable based on a detailed, actual accounting. An accounting that looks at the performance of the management, not an accounting that tries to emulate the valuation of the company. Only then will they return. Therefore additional leadership needs will have to be met within the producer firms with an understanding that the old guard will be gone and the new ways will have to have new corporate leadership.
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.