A New Year
People, Ideas & Objects had a good year in 2023, and since November, we documented approximately $4 trillion in lost natural gas revenues due to producer officers and directors' mismanagement. This validates the Preliminary Specification value proposition and proves our hypothesis, and is now the only method for North American producers to create future value. Their ability to close the price gap between North American and global natural gas prices hinges on the Preliminary Specifications decentralized production model's price maker strategy to enforce production discipline. Without it, they're producing gas at a loss for the century. From Henry Kissinger's 2022 book "Leadership: Six Studies in World Strategy."
Looking forward, the scope and scale of the difficulties and the amount of financial destruction being authored by North American producers continues. Recently Reuters Lee Cibis wrote.
Digitalization has the potential to unlock up to $2.6 trillion worth of revenue in the oil & gas sector by 2025. Upstream leaders and service providers alike need to keep up to date on the digital developments to seize this opportunity for increased production efficiencies and profits.
Digitalization, trillions and profits are words that may cause Ms. Cibis difficulties, although I appreciate the company. Reuters calculations are going to be global for both oil & gas whereas ours focus on North America and natural gas for the period 2007 to present.
Since we have revised the Preliminary Specification and we're now focused on the future we will blog less frequently in 2024 and we’ll be publishing more on X. Expect two blog posts weekly, Monday and Wednesday at 7:30 AM Eastern time.
Our need for more time to enhance the firm's research capabilities causes our drop in publications. Last year, I investigated hyper specialization in service provider organizations and strategies to address related issues. We will accompany our recommendations with conclusions once the research is complete, expected in 2024. People, Ideas & Objects acknowledges our limited influence on the complexity of developing service providers. The market's invisible hand provides this, aligning with our philosophy. Our research aims to review and advise on service provider development only, leaving it to the market otherwise. Preparing and organizing our research, our third competitive advantage, requires time and precedes any output.
We found one issue: the vast number of research projects we need to undertake. We are evaluating tools and methods to manage the abundant information more efficiently and start adding value to the dynamic, innovative, accountable and profitable oil & gas producer—a task that will yield results in the future.
We discovered something valuable to enhance our user community vision. Examining ChatGPT 4.0 reveals a clear difference between two user classes. The Preliminary Specifications user community vision suggests the need for Intellectual Property (IP) rights to support gainful employment, obtained through education and experience, and one of three IP access levels. First, outright ownership of IP, such as copyrights, trademarks, patents, and trade secrets. Second, licensed access to others' IP via contracts. Third, employment with a firm owning or licensed to use IP. These tiers are prevalent across People, Ideas & Objects, our user community, and their service providers.
Custom instructions of Preliminary Specifications Intellectual Property enhances ChatGPT Large Language Model (LLM) for our user community and service providers, increasing the value of their work and the IP of People, Ideas & Objects. We plan to include not just the blog and wiki content but the entire user community's documentation in our software development. This will encompass developers' code and Oracle Cloud ERP tool documentation, enabling our community to iterate faster and quickly find answers to complex questions that might otherwise have been missed or neglected. ChatGPT and our LLM bring together the comprehensive details of this knowledge for our user community and service provider organizations. A fallout consequence of IP being a foundation of AI is that the focus will remain within the domain of concern. Limiting the distractions and unnecessary diversions. At the same time unlicensed access to this IP will fall under the copyright provisions. Fair use will allow ChatGPT to use however none of it will be publishable or otherwise usable of our user community.
ChatGPT’s progress promises many benefits in the future. Leveraging these technologies will benefit our user community. Moreover, I use over half a dozen apps that employ AI to gather vast information based on their features. The Preliminary Specification includes an Artificial Intelligence module designed to steer industry efforts towards productive AI. Focusing the resources of industry on one shared resource and spreading the costs per boe produced. Oracle's late 2022 automation initiative prompted our rewrite of the Preliminary Specification, followed by their significant Generative AI capabilities in 2023. We have integrated these into the Preliminary Specification. AI is here to stay, and its value will increase with use. It’s currently receiving a lot of attention, like the .com bubble, and may just be as consequential as the Internet.
