What may not be too obvious at this point is that the overproduction and oversupply issue is what the Preliminary Specification was designed to correct. The collective overproduction by the producers just doesn’t stop. They say they have discipline, this time, but here we are four months into a production sharing agreement and the prices are about to fall as a result of higher shale volumes. It’s the same issue that was present in the 1980’s and 1990’s. The one that motivated me to start developing this solution. And it is the same issue that has fundamentally destroyed the natural gas commodity marketplace and is about to do so to the oil commodity market.
In order to solve this problem it is necessary for everyone in the industry to change “what” they do, and “how” they do it. Reading your particular section of the Preliminary Specification isn’t going to provide you with the understanding necessary to function in this new environment. You need to read the entire Preliminary Specification in order to fully comprehend all of the changes that are happening in the industry. That way the work that you do, and will do in the future, can fit into what is happening in the remainder of the industry.
The results of my industry analysis at the beginning of this year showed that each and every producer needs to triple their revenues in order to mitigate the damage that had been done to their firm and deal with the future. Running around cutting more staff to reduce your overhead. Beating up service industry representatives because you can isn’t going to solve this issue. The depth of understanding and thinking here is that when A occurs, do B. When profitability and cash flow are down, cut costs. Completely blind, deaf and dumb to the issues and opportunities that are ever present in the industry. And I have said all along that the reason for this is that we have an entrenched, complacent, lazy and happy bureaucracy who are challenged and disintermediated by People, Ideas & Objects and the user communities Preliminary Specification. Might as well through corrupt scammers in there as well. Acting stupid is just how they justify their actions and seemingly get away with it.
We can begin the process of replacing this convoluted BS by making your application to the user community. That way we can begin the process of rebuilding the industry brick by brick and stick by stick. Based on the Preliminary Specification and making the industry and producers dynamic, innovative, accountable and profitable. From stem to stern. Producing oil and gas in the 21st century should be done on the basis that all of it should be done profitably. And profitable based on a real accounting that recognizes the capital costs of this capital intensive industry. Where producers will have balance sheets that have cash and financial resources that replace the bloated balances of property, plant and equipment that now only represent the capital costs of past production.
Our plan consists of a prosperous oil and gas industry. One that approaches the next 25 years as the best 25 years of the industry's history. A time where the industry achieves profitability in each one of those years. Funding their own capital expenditures, replaces and refurbishes the infrastructure that we see decaying with greater frequency on the daily news, a future in which the investors and bankers, past and present, are treated with respect and their money treated with the appropriate accountability and not used just to fund the discount to the energy consumer. An energy future where responsible people are making the appropriate decisions at the appropriate times and dealing with the opportunities and issues as they arise. An industry that doesn’t blame the Saudi’s or OPEC, a warm winter or just the way things are on their poor performance and lackadaisical “muddle along” strategy and “do nothing” operating procedure. An industry that has respect for those who have committed their careers to the professions in the industry and expect to have more seniority than what casual labor has in the construction industry. An industry that has respect for the work that is done in the service industry and works hand in hand with those innovative and dynamic people who make the industry operate. And yes will actually pay the people who work in the industry and service industry on a timely basis. A place where it is not an honour and privilege to still have a job but a place where you can make a difference. And they say I’m the crazy one, that’s just because I expect more and dare to ask, what’s their plan?
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.