User Community Developments, Part XXIII

Members of the user community have full control of the Intellectual Property that makes up the Preliminary Specification, this blog and its derivative works. This being one of the four cornerstones of their offering that enables them to be oriented to the changes that need to be made in the oil and gas industry. How that Intellectual Property is managed has been discussed on this blog before and is included in the user community vision. We will be condensing the discussion of IP down to this one post here in order that it may become clearer in terms of what we’re setting out. When we’re discussing Intellectual Property (IP) with regard to what the user community will be able to control and amend, it includes all of the detailed specifications, the software code that is written to those specifications and the binary that is compiled from that code. In a nutshell, everything and anything that we develop to provide the oil and gas producers with the most profitable means of oil and gas operations. It is this IP that the user community member will be able to access and prepare derivative works from.

Discussion of IP can not be made without consideration of the flow of money. The costs of these developments are high and it is expected that maintaining and ensuring our subsequent software development and user community members efforts will continue to demand a large budget. These financial resources will come from the oil and gas producers in one form or another and paid directly into People, Ideas & Objects. The one alternative that we’re looking into, our ICO, will be very costly in the long run if the producers continue to do nothing about the issues they face. Nonetheless we can limit the discussion in this blog post to the fact that it is the Intellectual Property that is what is used to raise the budget from the producers and we will assume for the purposes of this blog post that this is the case. People, Ideas & Objects will be the only organization that will be licensed to generate revenues for the purposes of software development. Included in our costs of software development are the entire budget for the user community. This is as a result of the fact that we in turn pay the user community members the part-time hourly fees that they charge for the time they spend working on this project. The user community members will be provided with a license in order to earn these part-time revenues. It is also that license which will be used to limit the participation in our developments to user community members only. Producers, or others who have their needs met, will engage with the user community members on their own dime, we only pay for the time of the user community members.

It is the process of paying the user community member that I am earning the Intellectual Property rights that are generated by that individual. And all of the individuals in the user community. These rights flow back to me personally through a license granted by me to People, Ideas & Objects. I am the owner of the copyright and Intellectual Property that has been developed in the Preliminary Specification and this blog. In turn the user community members license provides unconstrained access to all of the Intellectual Property that is generated throughout the user community. We have done this in this fashion in order to ensure that certain individuals are not establishing their own IP within these developments which would require that other users have a license and possibly pay fees or royalties to these other users if they used that information. That process would be untenable and quickly become a legal disaster. By People, Ideas & Objects paying the user community member they are being compensated for their time and effort in developing the systems where the focus needs to ensure the producers are provided with the most profitable means of oil and gas operations.

The value in this licensing process is the exclusive right that is granted to each of the individual user community members to establish a service provider operation based on their efforts in the development of the software. There will be 3,000 user community members, any 600 of which will be engaged with our developers at any one specific time and there will be approximately 3,000 processes under management by the software. Users may own one or many interests in service provider organizations. This will also provide the user community member and the service providers staff with an End User License Agreement in which they will have the exclusive right to use the People, Ideas & Objects software for the purposes of resale, with their services, to the oil and gas industry. Although there is an EULA attached to the use of the People, Ideas & Objects software at the service provider organization. It is not contemplated, and we have not budgeted, nor ever expect to budget any of People, Ideas & Objects revenues will be generated as a result of a fee or royalty that is attached to this EULA. These are not contemplated as revenues in our business model. It would be essentially a double charge of the producers. Whereas the service providers are offering software and a service, we are offering software developments and both organization types generate revenues based on our unique and mutually exclusive activities. The collective annual revenues of the service providers may range in the tens of billions of dollars, or equal the amount that is paid to the administrative and accounting resources in all of the companies that are currently operational. Consider that the total G&A recorded for the first half of 2018 by our sample of 23 producers was $4.33 billion. These producers produce 9.5 million boe / day or approximately ⅓ of North American production. And the amount of G&A capitalized is estimated from 0% to 95%. Therefore the value of G&A may range for the North American producers at approximately $55.5 billion. How much of that is accounting and administrative is unknown.

This is how we’ve designed the process of how our software developments are conducted. How the IP is generated, who it belongs to and who can use it. How it is used and by whom and the value that each member of the user community can generate as a result. All with an eye to ensure that the oil and gas producers are provided with the most profitable means of oil and gas operations. All the time and everywhere. It is a workable model and one that is demanded as a result of the implementation of the decentralized production model that sees the administrative and accounting resources of the producers reallocated to the service providers.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XXII

People, Ideas & Objects user community is unlike any other user community that I’ve encountered before. To have user based systems at this time is the only method to build quality software. Everyone knows and understands the difference in terms of why the users involvement is critical. Therefore the establishment of our user community, its founding and the manner in which it operates will either enable or constrain the users ability to use the software that they want and need. Our user community has been established with the power and control that they require to ensure that they are the ones that can affect the development of the software they want and need. Establishing the user community in this manner enables them to provide the industry with leadership in terms of the administrative and accounting issues and opportunities on behalf of the oil and gas producers. Undertaking a critical role in the development of the industry over the next 25 years. Possibly the most challenging period in the industries history.

The first cornerstone if you will of our user communities foundation is that they are in control of the Intellectual Property that makes up the Preliminary Specification and its derivative works. Under a license that I provide for the Intellectual Property (IP) that I have developed here and represented in the Preliminary Specification. They will have the full rights to make the changes to that IP as required. The world has changed in the past twenty years. It is an IP driven world and it will be much more so in the future. You will either have developed your own IP, have been granted or earned a license to others IP, or work for someone who has a license themselves. The user community member will fall into the second category having been granted a license upon acceptance into the user community. Once they’re part of the user community they will be able to make the changes and manage the IP under their license as required. It's not enough to own the oil and gas asset anymore, it’s also necessary to have access to the software that makes the oil and gas asset profitable. The user community member will be the one on the front lines of providing the most profitable means of oil and gas operations through their control of this Intellectual Property.

Whether it’s technical, regulatory or user based changes that need to be addressed it will only be the user community member that has the authority, capability and responsibility to make the appropriate changes to the People, Ideas & Objects software systems that will be used in the industry. In the current market environment, if there is a change needed in the software that you use today, who do you call? In People, Ideas & Objects the user community will be the one and only place in which anyone will have their concerns addressed. The second cornerstone of the foundation of the user community is the People, Ideas & Objects software developers only see the user community as the source for their input for their development efforts. Our developers are deaf, dumb and blind to all others. Those from the industry and specifically the producers must deal with the user community in order to have their wants and needs met. Talking to us will not provide them with anything but frustration. Even more so than what they feel today. People, Ideas & Objects are dedicated to the development of oil and gas ERP styled systems and will only see the user community in terms of who they need to deal with.

Under the license provided to the user community member, there will be another provision in which they establish a service provider organization. The service providers are the reorganization of the administrative and accounting resources from the producer firms to these new organizations. Service providers will focus on one process and manage that process on behalf of the entire oil and gas industry. The license will grant them the exclusive right to manage that process. Service providers will not be competing based on price. Once a user community member earns a domain for their service provider organization, then it is their asset. As the principle in the service provider organization, the user community member knows intuitively the issues and opportunities that the process they manage will provide the oil and gas producers. They will have the capacity to act and access to the developers in order to do so. The establishment of the service providers is a key element of how the oil and gas industry obtains their profitability in the decentralized production models price maker strategy. It is also the third cornerstone of the user community that makes it unique. The service providers are significant organizations ranging in size from $2 to $20 million in annual turnover. They are the primary source of revenues for the user community member as the user community has always been considered and budgeted by People, Ideas & Objects as a part time source of revenue.

Our fourth cornerstone is that we are change based software developments. User community members have the service providers as their primary source of revenues and these will be consistent from month to month as a result of the software and services they provide the oil and gas producers. The part time user community revenues we mentioned will be as a result of the work they do to make the changes to the software they’ve developed for the process they manage. People, Ideas & Objects revenues, once the Preliminary Specification is released as commercial software, will depend on the changes being made by the user community to generate the software development revenues that we generate. These are done to ensure that we are oriented to the changes needed in the oil and gas marketplace. If a new business model is necessary, the decentralized production model can be removed and a new model installed to ensure that the oil and gas industry is not constrained for years by their software’s inability to change. Often what we see with ERP system providers is that they are heavily constrained by the code that they develop and the customers that they acquire. As both of these grow the ability to accommodate change becomes progressively more difficult which conversely is not a direct revenue generating activity in those software developers. A situation we will avoid.

These four cornerstones make for a far different user community than has been experienced in oil and gas. It is a permanent fixture and a critical leadership capability to the oil and gas industry and producers. A business opportunity for the approximately 3,000 user community members we estimate will be necessary to provide the quality of service that the oil and gas producers need. Our commitment to user community based developments is I think reflected in how we’ve established this overall framework. And as soon as the Preliminary Specification was published in its final edited version in December 2013, we began development of the user community. We will soon have completed five years towards our development and posted our user community vision and 319 blog posts. I like to think that much of the difficult, time consuming work has been completed. Now just the difficult work remains.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XXI

One needs to contrast the competitive advantages that People, Ideas & Objects user community and service providers provide the oil and gas industry in comparison to the administrative and accounting resources present in each oil and gas producer today. The key differential is that the user community and service providers provide the oil and gas producers with the most profitable means of oil and gas operations. That is verified through our value proposition which is available through use of the Preliminary Specification and these communities. We rely on the user community to provide the leadership within the industry to ensure that the oil and gas producers attain, and continue to always achieve the most profitable means of oil and gas operations. They have the means in which to make the changes to the software that is derivative of the Preliminary Specification and the services that are provided through their service provider organizations.

Another key difference between these two systems of organization of the oil and gas industry. Are that the current organizational model requires each and every oil and gas producer to build and maintain the administrative and accounting capabilities to function in the current business environment. What I mean by this is that the task of building and maintaining the requirements within each and every producer becomes an industry wide capability through the implementation of the user community and service providers. Today each producer is tasked with ensuring that they are meeting all of the requirements of every regulation and ensuring that the shareholders resources are managed appropriately. These tasks are not fundamentally different from the producer in the adjoining building or across the street. Today these resources and capabilities are not shared in any way because they are not shareable. With the structure introduced through implementation of the Preliminary Specification the service providers are managing one process and applying it to their customer base, which consists of the entire oil and gas industry. Therefore the shareable nature of the service providers process management is an inherent cost savings for the producer. This configuration, in addition to enabling the price maker strategy which therefore provides for the most profitable means of oil and gas operations, is a more cost efficient and effective manner in which to build the administrative and accounting capacities and capabilities to ensure compliance and governance is achieved within all areas of the industry and each producer.

The next 25 years in the oil and gas industry will be its most difficult. With the current disgruntled financial community, the financial demand to replace much of the infrastructure and the retirement of the brain trust of the industry. All pose difficult issues to the North American producers. The dynamic, innovative, accountable and profitable producer will need to adopt any and all necessary changes to their operations quickly. The era of muddle along and do nothing has seen its best days and has failed to provide any value for the industry. The user community and service providers, in addition to providing the administrative and accounting services to the producers, also provide continuous development of the business models. If there is a need for the adoption for a new business model, one that is not understood today, or would be incremental to those in the Preliminary Specification these organizations have the capabilities to dynamically make the changes to the software and services that make up the administrative, accounting and business models of the producers and industry.

How will the producers prove to their current and future investors that their future will be any different? How can they assure them they’ve acquired that old time religion of profits? I don’t think they even see the issue or its cause at this point. The producers behaviour has to be frightening the investors as they double down on their muddling and twiddling. Their credibility to provide any profitability or accountability in the current or future environments is null and void. When it comes to the next 25 years with the issues the industry is facing and the bureaucrats doing their Mr. Magoo impersonation I don’t see the investors changing their minds. The current industry trajectory is a continuous decline into oblivion. Allowing the continuation of creative destruction is contrary to the investors realizing the value that they have been short changed by these self interested bureaucrats. This value is represented in the $1.6 trillion sitting in the current producers property, plant and equipment account. This amount also represents the discount that has been provided to the consumers when the producers never recognized these capital costs of past production. To realize this value demands that the Preliminary Specifications decentralized production models price maker strategy be implemented with the user community and service providers. Either the investors can do that through their active participation in their producer organizations or the bureaucrats can wake up.

The President of the United States is suggesting he will be releasing 5 to 20 million barrels of oil from the strategic petroleum reserve to offset the Iran sanctions going into place in November 2018. It's almost like the President believes that oil prices are subject to price maker characteristics! Additional volumes of oil and gas supply have a material effect on the price. The producers should take this as the second source of evidence that the oil and gas commodities are subject to the economic characteristics of price makers and begin behaving in that manner. Implementing the Preliminary Specification might also give them some much needed credibility that they’re approaching the next 25 years with a different point of view and understanding. One in which they’ll focus on providing their investors with the most profitable means of oil and gas operations.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XX

When a new producer begins. When an acquisition by one producer of another occurs. When facilities or properties are bought and sold. When new facilities are brought on line. The need for systems integration of that data and information into the ERP system is a necessity. These will be carried out by the user community member through their service provider organizations. Integration of the process that they manage will therefore be a key offering, and seen as a distinct competitive advantage that the service provider provides the industry. The skills and capabilities in this area, when limited to just the process that is under management by the service provider organization, could become extremely efficient and valuable for both the producer and service provider.

There has been a strong orientation towards the Information Technologies in the user communities recent development and specifically their competitive advantages. Also with the recent expansion of the Preliminary Specification to twelve modules with the addition of the Blockchain module. The addition of these elements of Information Technology as part of the competitive advantages of the user community member and service provider are a substantial part of their skill set. We are developing the user community from the resources that are currently employed in the oil and gas industry. Primarily from the administrative and accounting fields. The orientation towards the Information Technologies are significant, and as with the leadership we noted the user community would be providing the industry, Information Technology is a fundamental part of the work that we are doing by developing software. The changes in everyone's work in the very near future. The sub-industry that we are creating with the user community and service providers that are filling the gap that has been created between the oil and gas producers and the technology providers. Where specialization and the division of labor has demanded that each of these industries focus on their capabilities and competitive advantages, and as a result are having difficulty communicating with one another. People, Ideas & Objects, our user community and service providers have to fill that gap with our own fundamental understanding of oil and gas and our special attributes or orientation towards Information Technology.

To quickly review where the user community and service providers competitive advantages stand we have the following list. We will provide a quality offering and let others compete on price. We will use specialization and the division of labor to generate further value for the oil and gas producers by doing more with less. Automation of the business processes will be a key feature of the service providers through their abilities and capabilities obtained through the user community vision. Specifically those include control over the Intellectual Property that makes up the Preliminary Specification and that People, Ideas & Objects software developers will only ever look to the user community for their input. The Preliminary Specification, People, Ideas & Objects, our user community and service providers are structured to provide the oil and gas producer and industry with the structure and capability for the oil and gas industry to expand its capabilities in terms of innovation. In that sense innovation on the administrative and accounting expertise will be a contributing factor to these producers innovations. We will focus on having the computers working for us as opposed to the situation today where I feel we are working for the computers. And therefore we will do what humans do best which includes the leadership, issue identification and resolution, decision making, creativity, collaboration, research, ideas, design, planning, thinking, negotiating, compromising, innovating and financing. And as we have been discussing we’ve added the application of Artificial Intelligence, Leadership, Integration and 5G / Internet of Things to the list of distinct competitive advantages of the user community and service providers.

We noted in the user communities vision, and elsewhere, that we need people who have a strong orientation towards the Information Technology capabilities. We are developing software and services based on that software, and understanding the strengths and weaknesses of the Information Technologies provides an understanding of the possibilities of what the software can do. We are the hybrid sub-industry between the oil and gas and Information Technology industries. These demands on the user community members are high, however these are the needs as defined by the marketplace. The service provider operations may be populated by specialists in either of the two industries in order to deal with the unique process that is under management at that service provider. If the user community participation role and opportunity appeals to you we have listed the level of Information Technology courses and understanding that would be helpful in the user community vision.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XIX

It was December 2013 when we published the final edited version of the Preliminary Specification. It was immediately after that we began with our focus and priority for these past five years. The same priority and focus that will always be what People, Ideas & Objects concern themselves with. Our user community. The development over these past five years has been slow and cumbersome however that is the problem with doing these kinds of things. You can’t short circuit the time commitment necessary to do it right. The biggest issue that I think People, Ideas & Objects have is that our awareness is constrained by the nature of the people who are interested in the user community. They’re not that free and willing to openly discuss this opportunity within the industry. There are many things that can be done quietly in the background, however it would be bad to discuss this in front of your employer, it is very bad to discuss in front of the bureaucrats, they just love to snuff out any interest and its bad to talk to other people who may not see the need in the industry and would see the support of People, Ideas & Objects as part of the loss of commitment to the oil and gas industry, a commitment that they would feel is needed at this dire time of need. This is the political environment that all major changes have to deal with and survive through. What people can determine from this is that People, Ideas & Objects are more committed than ever to see the changes brought about to ensure that we provide the oil and gas producers with the most profitable means of oil and gas operations. The only manner that this will be successfully done is through our user community, one in which has been endowed with a vision such as theirs.

My concern is that we’re cycling downward in terms of oil prices once again. It is what the bureaucrats do. It’s been over ten years in which the natural gas prices declined, and the cycling of those prices up and down, that led to the final loss of faith in the commodity price recovering to its traditional levels. Natural gas has traditionally traded at 6 to 1 of the oil price for the majority of its existence. Oil now trades at almost 26 times the price of natural gas. No one talks about the price of natural gas or the natural gas business. It is for all intents and purposes fundamentally destroyed by overproduction. Initially the low prices were constrained to the North America as a result of the continental nature of the marketplace. That has changed with global prices for natural gas now tracking closely to the North American prices. This has put substantial pressure on the viability and economic performance of LNG and the overproduction by the North American producers continues unconstrained. What constraints consist in the oil sector of the North American marketplace. OPEC has shown the way in terms of managing inventories, as all other business do, to ensure that the prices they ultimately realize would be profitable. Managing inventory is a necessary part of every business. Even Ford recently shut down production of the F-150. The most popular truck manufactured for something like 30 years straight. Why would they do that, because it's a business and they don’t want to overwhelm the market with overproduction.

Producers have expressed no desire to retrieve the monies that sit in property, plant and equipment on behalf of their shareholders! Interesting. I have been discussing the stored value sitting on these balance sheets for years. The only way in which to release this value is for the producers to implement the Preliminary Specifications decentralized production models price maker strategy. Producers would prefer to suffer through a cash induced starvation instead. It doesn’t make any sense and that’s the point. Oil and gas is not being run as a business. The bureaucrats are fine and satisfied with their compensation and see no reason or need to change the dynamics of their personal situation. How many times do bureaucrats think people will follow them when they just ride out the highs and lows of the oil and gas prices. They’ve lost the interest of their investors and bankers. Many have been displaced and those that do remain find that the increase in deliverability of production and the reduction in costs overall in the industry have nothing to do with what they’ve been suffering and sacrificing for, but with Artificial Intelligence! Well who ever was talking to the Wall Street Journal about AI just wasn’t thinking were they, therefore we can only conclude that it was a bureaucrat.

How does this play into the mindset of the user community and the developments we are undertaking. Only when strong leadership is present within the industry will there be a return to prosperity for those outside the bureaucracy. We see the user community being the leadership necessary to make the industry dynamic, innovative, accountable and profitable. The current bunch are not representative of that strong leadership as they are the ones that brought us to the point where this new leadership is demanded. Our user community members leadership will be the reason why our value proposition is realized by the industry.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XVIII

At one point early in our journey here we had developed a Technical Vision that set out how we thought that the Information Technologies were going to develop. The Technical Vision contained four features that would impact the way that we saw ERP systems being developed and used. The first was the use of object oriented programming and specifically the use of the Java Programming Language with its static capabilities. Second was the roll out of IPv6 which would expand the number of unique Internet addresses. The third component was what we called Asynchronous Process Management and the fourth was wireless communications. Many would see this today as the Internet of Things which is what we’ve begun to use in place of the Technical Vision.

The Internet of Things is the technology that is always just around the corner. And there is nothing to say that in ten years it will still be just around the corner. However, there is a major piece of the puzzle coming into play during the time period that the Preliminary Specification will be under development. One that will enable the Internet of Things to become real. (Crossing my fingers here.) If so then the dynamic that is the Internet of Things can be a key attribute of the Preliminary Specification, our user community and service providers offering. And the majority of the implementation of that offering would be through our user communities inclusion of the technologies within the Preliminary Specification as they build it, and the use and further iterative development of those technologies through their service provider offerings.

The technology that I anticipate will be the reason that the Internet of Things becomes real is the primary reason that everyone’s cellular phone bill is so high. That being the build out of the next generation of mobile phone service that’s in process in the U.S. and Canada. The expectation that these services will be provided some time in 2019 and 2020 is the projected time frame. The technology is labeled 5G and is substantially different than the phone service that your using today. The speed or bandwidth of the service is up to 20gb / second. A remarkable rate. But the real feature of the technology is that it’s not point to point, as I call it. Where your phone is communicating only with the tower that handles your signal. The 5G technology is able to communicate with anything and everything all the time. The ability therefore to interface with the persons phone next to you and communicate directly without having each to be routed through the entire global infrastructure. Therefore having sensors and controls on every aspect of the oil and gas infrastructure with the necessary secure and addressable communications will soon be a possibility.

How is this going to change ERP systems? How is this going to change the Preliminary Specification? How is this going to change the work that we do here at People, Ideas & Objects? And how is this going to change the role of the user community participant and their service provider organization? Well first of all there will be some extra data that we’ve not seen before. I think that’s a given. Here is where the value of the user community and service providers come into focus. I could sit here and come up with some good ideas of what the impact of 5G would be for the Preliminary Specification, and to the larger issue of the oil and gas industry. However, with 3,000 people in our user community who have been endowed with the capabilities and capacities, the power and authority to make the changes to the underlying software and services they use to manage their oil and gas producer clients, the sky's the limit in terms of what the possibilities would and could be.

A new module could be written to include the 5G technologies however, as with Artificial Intelligence, that would be very limiting. The inclusion of 5G and the adoption of the concept of the Internet of Things into the long list of competitive advantages of the user community and service providers is where this belongs. Giving them the understanding that they have the power and control to do what it is they want and need to be innovative and valuable for their producer clients.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XVII

We raised the point about Artificial Intelligence and how it was alleged to have provided the current producers with substantial gains in efficiencies. The possibilities that AI would be responsible for an increase of one million barrels per day and a reduction in the head count of 21% is well beyond what would be reasonable to assume the technology would or could be able to provide in the next decade or two. The Wall Street Journal doesn’t involve itself in the type of “fake news” that some outlets are involved in. Therefore someone had to be providing those reporters with this information and we can only assume that the bureaucrats are actively looking to enhance their “performance” reputation in the eyes of their investors. This may be the current excuse or reason that will become the go to standard excuse for them in the next few quarters.

Artificial Intelligence is a useful tool and one that will be used throughout the Preliminary Specification, our user community and service providers. We will not be writing a module within the specification that deals with AI’s features. We won’t be writing anything about AI into the Preliminary Specification. What AI will be in terms of the user community and service providers will be another key competitive advantage to be used to provide the oil and gas producers with the most profitable means of oil and gas operations. As will the People, Ideas & Objects developers. Where and how much of the technologies to use and apply in their day-to-day interactions with the producers will be based on the AI skills and capabilities that they the user community member and service provider are able to create. I would also expect that the way that AI is implemented within the service providers would be somewhat of a source of competitive differentiation throughout the service provider sub-industry that we are creating. Just as all their other competitive advantages would be.

In 20 years time we will have gained significant benefit from Artificial Intelligence in the oil and gas industry. What we have learned in the Preliminary Specification is that innovation doesn’t just appear out of thin air as the WSJ report intimates. The structure of the organizations and the processes that support the producer organizations have to be structured in a way to facilitate innovation. Only in that way will innovation be able to foster and grow. Apple is such an organization and there are many organizations that are not. I’m sure that many have tried to emulate the innovative capabilities of Apple in their own organizations. That’s not how it works, for more on how the oil and gas industry will become dynamic, innovative, accountable and profitable, the reader needs to study the Preliminary Specification.

There are two key things to remember at this point. The only manner in which value has ever been generated in the past two or three centuries is through the application of specialization and the division of labor. These are the key competitive advantages of the user community and service providers. It will be a long time before AI knocks these two off their value generating perch. The second thing to remember in this the 21st century is that software defines and supports the organization. Therefore if we want to make a change in the producer organization, based on your analysis of specialization and the division of labor, you will need to change the software that the organization uses first. And that demands that we first configure the industry and producer structures in such a manner as to facilitate these changes. Which is what the reorganization of the administrative and accounting resources of the producer firms into the user community and service providers will do. Making the effective changes to the software that they have the power to do so through the user community vision, and to make the changes to the processes that they manage on behalf of their clients the dynamic, innovative, accountable and profitable oil and gas industry.

Eventually, I don’t know when, the industry will depend on a high volume of ideas being generated throughout the oil and gas producers, service industry, user community and service providers. The volume of ideas today, although highly constrained by the bureaucracy, is still a quantum level higher than it was fifty years ago. Just as the number of ideas will need to be a quantum level higher in terms of volume and velocity in the near term. The distributed nature of the user community and service providers will facilitate the ability to generate the ideas and implement them within the software derived from the Preliminary Specification and follow through with the necessary organizational changes at their service provider organizations.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XVI

What the Preliminary Specification, our user community and service providers represent for the oil and gas industry is the capacity to change, the leadership in the administration, accounting and business model development and realization of the full value of our objective of providing the oil and gas producers with the most profitable means of oil and gas operations. It is through our value proposition that we are able to quantify and qualify the industry gains of using the software and services that we’ll provide. It’s not enough in the 21st century to own the oil and gas asset. Producers will also need to have access to our software and services that make their assets profitable. What we have seen is that the industries producers are incapable of generating a profit, they are incapable of generating cash! Without the Preliminary Specification, our user community and service providers the industry will fail. The investors and bankers who once believed the producers now see the future of the industry as bleak and are not actively participating in the decline that is underway.

When the user community and their associated service provider organizations are providing the oil and gas industry with the quantifiable increase in their revenues and profitability. Increases that they’re incapable of generating on their own. Increases that are being valued at $25.7 to $45.7 trillion over the next 25 years, only a fool would believe that the administrative and accounting provided by the service providers would use price as one of their key competitive advantages. Why would they? It is the same issue that we see the industry having towards People, Ideas & Objects development budget. The the high value of the amount of our budget, the payment of Intellectual Property royalties, and the expectation that we would earn substantial profits too! The issues that the producers take with our budget reflect to me that they really not interested in solving problems. Problems that even they can see are quantified in the trillions if only they had the means in which to implement the appropriate solution. They need to pay for that solution, and building that solution is the cost they’ll have to incur in order to earn back what they’ve lost, stem the tide of current losses and build for the future. Otherwise they’ll be headed out of business on the basis of how they’re operating today. It's not our businesses that needs to be corrected, we’re doing fine thanks.

The competitive advantages that the user community and service providers employ are comprehensive and consistent with what a 21st century firm needs to be providing their clients. We have talked about the long list of competitive advantages that they’ll have available to them in order to build value for their producer clients. These have included quality, specialization and the division of labor, innovation based on the administrative and accounting expertise, automation and having the computers work for us. A change from today where the computers have the people shuffling data between here and there. We will relegate the use of computers to what they do best, storage and processing. And the people will involve themselves in the leadership, problem solving, decision making, creative, collaboration, research, ideas, design, planning, thinking, negotiating, compromising, innovating and financing. To name just a few.

I read an article of great interest in the Wall Street Journal the other day. It was discussing the productivity of the oil and gas producers in the field as a result of their application of Artificial Intelligence, automation and other technologies. Suggesting that since the downfall in oil prices in 2014, oil production is much higher at 10.9 mmboe / day, yet oil and gas employment is down 21%. Doing much more with far less as a result of that automation and Artificial Intelligence has provided. Who would have thought, who would have believed? Well I certainly don’t. Deliverability has nothing to do with how many people are employed by the industry. That is not a direct correlation. The industry has not hired any of the people they laid off either. Remember they don’t have the cash. And to suggest that the result of this is that they’ve squeezed higher profits out of the oil is too far of a stretch for me. For your reading enjoyment I’ll provide the two paragraphs that I find the most comical. From WSJ.

Oil prices are back up to their highest levels in more than three years. U.S. production has topped record levels, hitting 10.9 million barrels a day in the last week of June, according to the U.S. Energy Information Administration, compared with its high of 9.6 million in 2015. But as of May, nationwide oil and gas employment is down 21% since 2014, according to state and federal data compiled by Karr Ingham, an economist for the Texas Alliance of Energy Producers, an industry group.

The energy sector had been shielded from pressure to innovate by high oil prices. When prices fell 75% over 20 months beginning in 2014, oil and gas companies were finally forced to modernize to squeeze out profits. Many found they could use new technologies to do the work better and cheaper, with fewer people. They have invested billions of dollars on what the industry dubs “digital oil fields,” embracing artificial intelligence, automation and other technologies.

As long as we know it has nothing to do with prolific nature of shale or the layoff's that occurred during this bureaucratic, disastrous downturn.

Since 2014, and even prior to that when it involved the natural gas business, producers have had nothing but excuses as to what will be the results of the never ending “current situation.” “We’re praying for a cold winter,” “it’s OPEC’s fault,”and “next quarter.” To be honest I’ve been laying in wait for the day when the producers attributed any alleged “increased performance” to the application of Artificial Intelligence or Machine Learning. I thought they would use it as an excuse, though in the form of “we’re going to apply Artificial Intelligence and Machine Learning to the business to gain improvements.” Not that here are the improvements we’ve attained by these technologies. This is very bold statement.

Since 2004 I have been asserting that the issues in the industry are serious and would cut to the core of the industries survivability. Which is exactly what has happened. Taking our breakthrough of using the Joint Operating Committee as the key organizational construct of the dynamic, innovative, accountable and profitable oil and gas producer. And expanding on that through ten years of research that introduced hundreds of concepts that are codified in the Preliminary Specification and related documents. These concepts have pushed the industry forward substantially in terms of identifying and resolving the issues that are prevalent in the industry today. As of today, they are not so much considered possibles as necessaries in order to put things back together again. The point I want to make is that at no time did I receive any support from the bureaucrats. On the contrary I was subject to constant abuse and on five different occasions other firms were hired to try and poach my Intellectual Property. None of these other firms were successful and all expressed disappointment that they were used by the oil and gas industry in the fashion that they were to violate others IP. These were substantial companies with premier reputations which included Cambridge Energy Research Associates, McKinsey & Company (twice), Ernst & Young, The Oxford Institute for Energy Studies. The ideas inherent in the Preliminary Specification have been fought over due to the effect they have in disinter-mediating the bureaucracy.

For those of you who are unaware what Artificial Intelligence is, it’s very much an extension of what engineering and financial modeling have become. Brute force computing of many different scenarios to determine which is the best solution. Artificial Intelligence takes this same approach and applies it to the conceptual level. Creating new concepts that build off what is known today. If I have had nothing but arguments, fights and difficulties in getting the concept of higher, material profitability across to the bureaucrats, what do you think they’ve determined from Artificial Intelligence that has enabled them to a) reduce the head count in the industry, and b) expand the profitability? And where is that profitability? Acceptance of ideas have been always difficult in oil and gas. Maybe some of the most recent stories regarding coiled tubing and Packers Plus would enlighten you on the decades long pursuit they needed before they were accepted in oil and gas. Bureaucrats will stoop to any level to make it sound like their on the job, meanwhile will stop at nothing to ensure that no concept is ever introduced. That they now claim to be benefiting materially from Artificial Intelligence is a certain type of misrepresentation. One I think they should be called upon. It’s all bunk as my grandmother used to say.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XV

With this post I continue to summarize the contents of our prior series. It has been a while since we posted anything regarding this series and instead of everyone rereading them it would be easier for me just to point out the topics discussed. Making changes to the industry accounting and administrative processes will be easier once the Preliminary Specification, our user community and service providers are in place. With each producer currently building their own accounting and administrative capabilities, capabilities that are replicated within each and every oil and gas producer, capabilities that are not shared or shareable. The industry in general has minimal to no capacity for change. Software that is used by the producers might be different from one producer to the other. Making changes in the software from one producer may not interest producers on other software systems with different vendors. Therefore the ability to make the changes, that would alleviate the difficulties that administrators and accountants face each day in the processes that they manage, remain unaddressed. No one has the power, the capability to make the changes, this has been learned over the past decades, and as a result no one even tries anymore. Who do you address your inquiries too? Where do you go to get things changed? In the environment where the Preliminary Specification, our user community and service providers exist the producers representatives will be able to call upon the user community member to have their needs addressed and the software changed.

If any producer is holding out that their administrative and accounting capabilities are one of their strategic competitive advantage it might be a good time to relieve yourself of that companies stock. What the Preliminary Specification, our user community and service providers are building are standardized, objective, accurate and timely process management software and services for accounting and administration in oil and gas. The user community members are the ones capable of making the changes to the software and processes that they manage. The suite of competitive advantages that they’ll provide are fundamentally different than just price and we’ve discussed those on many occasions. In future posts we will be adding to this list with a number of new competitive advantages that have developed recently.

As these accounting and administrative capabilities are part of the overhead costs of the producer firms the Preliminary Specification is shifting them to be the variable costs of the Joint Operating Committee. Variable based on production at that Joint Operating Committee. These overhead costs will also be part of the overall overhead costs that will be incurred in the current period. The Preliminary Specification eliminates the policy of capitalizing interest and overhead costs. The capitalization of overhead is a foolish policy that attempts to deceive investors into believing that producers are profitable. By incurring the overhead in the current period the financial resources incurred in providing these services will be returned to the producer almost immediately and therefore be available to fund the next months overhead costs. Assuming they are producing only profitable production. As it stands today producers expect that they can capitalize a large percentage of overhead costs and that the current and subsequent years worth of overhead will be financed by investors providing more cash to make up for the cash shortfall of the producers foolish overhead capitalization policies.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XIV

Last week we discussed at length many of the deficiencies that exist within the oil and gas industry. Offering many of the alternatives that we provide the oil and gas investor community to deal with the staid bureaucracy. The Preliminary Specification, our user community and service providers are designed to deal with these deficiencies and provide for the dynamic, innovative, accountable and profitable oil and gas producers. A substantial change from the “muddle along” strategy and “do nothing” operating producer that’s in place today. Natural gas has been depressed for over a decade. Oil is moving towards its fourth year considering that today’s commodity price, as we’ll learn in the producers second quarter reports, is inadequate to solve these issues and deficiencies. The investor strike continues with no sign that they’ll be changing their ways despite the desire of the producers for them to do so. I project the cash situation in the industry is getting hypercritical and will be detrimental to the operational capacities of the industry soon. As we documented last month the industry has lost the financial, political and operational control of the industry. There needs to be a concerted effort involved to return the industry into “real” profitability in order to fix what ails it. I only ask where is the motivation, the energy and drive to do so?

Back a few months ago we were diverted from our discussion of our user communities development. Today we are resuming that discussion and I hope that we’ll be able to finish it off before we’re distracted again. The only things I see in the future that might distract us would be the second quarter earnings season beginning in late July and finishing in mid August and a two week vacation. Therefore if we hurry we may get through it this time. I can’t express to you enough the level of commitment that People, Ideas & Objects has towards user community based systems developments. The alternative to these is in use today everywhere else in the industry and those systems are not solving the problems that are epidemic in the industry, are they. Why recreate that poor performance now? Well we won’t be and although our attention has been diverted, we do have 311 posts on this blog that have been tagged with the “user” tag reflecting the volume of discussion about our user community at this point. I enjoy taking the baseball bats and other weapons that are handy to me and giving my best to the bureaucrats. People might think this is counter productive in attempting to develop software for the producers. That may be the case however the issue falls with the bureaucrats and they are the ones that caused this with their own self serving actions. Our customers are not the producers. Our customers are the user community and to a lesser extent the oil and gas investor. These are the two groups that we cater to in terms of the work that we do. As our user community vision reflects we are deaf, dumb and blind to the oil and gas producers. We only deal with the user community in terms of what and how our software does what. And that will always be.

So before we get back to the discussion of the user community I’d like to review what was discussed in the prior thirteen instalments of this series. The overall objectives of the user community are very simple. They will become the state-of-the-art providers of leadership and capabilities in terms of oil and gas administration and accounting in North America. Now we face the hard work that is associated with that objective, and that of course would be building the user community. Something we have been hard at since the publication of the Preliminary Specification in December 2013. We are not just looking for quantity, we estimate that there will be a population of approximately 3,000 user community members and hence service providers. We are looking for the quality necessary to meet our objective and provide the oil and gas producers with the most profitable means of oil and gas operations. As the permanent replacement to the fixed costs of the producer based capabilities for administration and accounting with the variable costs of an industry based administrative and accounting capability based on the Preliminary Specification.

User community members will be granted licenses to manage a process in the software derived from the developments of the Preliminary Specification. This is a substantial business opportunity that we have estimated will have revenues in the range of $2 to $20 million / annum in each of the service providers. We have established a strong business model for both the user community participant who will generate part time revenues from their work with our developers as well as their service provider operation. The competitive advantages of these service providers will be comprehensive and diverse. It will not be on the basis of price however, the granting of a license to manage a process will provide the user community member with an exclusive right to manage that process. Their competitive advantages will include innovation based on the administrative or accounting expertise, quality, specialization and the division of labor and automation to name just the highlights.

The role that the user community members take in the industry is substantial. They will be the leaders of the industry in terms of administration, accounting and business model development. Through the user community vision they are in control of the Intellectual Property that makes up the Preliminary Specification and its derivative works. They will have the power and control to make the changes necessary to ensure that the oil and gas producers continue to attain the most profitable means of oil and gas operations. It is also the user community participants that the oil and gas producers will turn to exclusively to have their systems needs taken care of. User community members are not your grandfather's user community members. It is People, Ideas & Objects belief that Intellectual Property will be a critical element of a successful business strategy. The user community members use of the Preliminary Specification in the manner of the user communities vision provides them with the beginnings of a successful business strategy.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XIII

As we noted yesterday the new oil and gas producer, the one that is enabled through the implementation of the Preliminary Specification, has acquired the business model that enables them to control all of their overhead. Their administration and accounting are handled by the service providers and charged directly to the Joint Operating Committee. Any overhead that they incur will be as a result of profitable operations and hence paid for. Any shut-in inventory of unprofitable properties will not attract any of the administrative or accounting overhead. What the shut-in inventory of unprofitable properties will attract is the hourly charges from the earth science and engineering resources time in which they’re working on these properties in an effort to return them to profitable production. These earth science and engineering resources charges would be considered capital costs in my opinion. While those geological and engineering resources are working to return these unprofitable properties they will be generating service revenues from billing the Joint Operating Committees AFE or lease for the work that they’re doing. Capturing the producers service revenues necessary to cover off the cost of maintaining the earth science and engineering capabilities of their producers competitive advantage.

Whether the new oil and gas producer is a startup or an intermediate they will be able to maintain profitability of their oil and gas production at all times. The startup producer can begin operations by reselling their earth science and engineering capabilities they’re developing prior to owning any oil and gas properties and remain profitable. The shareholders can begin their involvement as soon as the management have shown commercial use of their capabilities. In addition, participation in a few small properties is the beginning of an oil and gas producers production profile. In today’s environment this requires the staffing of administrative and accounting resources necessary to manage the firm's interest in those properties. With the Preliminary Specification and service providers in place shareholders won’t see millions of dollars being consumed in the maintenance of overhead during the startup phase of the organization. Only the fees for the service providers will be charged on the few properties that are owned by the producer. Attaining a 100% effectiveness of the administrative and accounting resources being charged on those properties vs. the extremely low percentage utilization the full time administrative and accounting resources the startup producer has to take on in today’s market. Unlike today, this will have proven to the shareholders that the management of the new oil and gas producer have an understanding of business and profitability, and will not indulge in development of a spendthrift organization such as today’s oil and gas producers.

This is not to say there will be no overhead that is not incurred at all times. The CEO, COO and CFO salary and benefits are not included in either of the two categories we mentioned. When the differences are analyzed between the overhead that is incurred by today’s producers and that which is incurred by a producer in the Preliminary Specification. They will not be carrying any of the costs to maintain and build their competitive advantages in the earth science and engineering capabilities. These would be self-supporting activities as they are a separate business model in the Preliminary Specification from oil and gas production. Direct overhead of the Joint Operating Committee will be incurred for any production that is profitable. This will involve the producers share and be offset by the revenues of oil and gas sales. Lastly there will be some overhead that the producer will be incurring above and beyond these areas in the management areas of the organization. These are not incidental costs and how the producer chooses to report them, as capital or costs, would be to their discretion.

Bureaucrats have been fooling themselves about how much they spend and where it should be classified. “Large explorers outspent their cash flow by 117% over the past seven years,” according to Barclays. “The top 15 oil companies have paid executives $2.8 billion over the past decade while delivering a smaller return to shareholders versus other industries.” That averages $18.6 million per year / producer. I can state unquestionably these are not the statistics that drive the day to day or any conversations anywhere in the industry. It is the pursuit of the engineering and earth sciences technical difficulties that occupy the minds of the oil men these days. Increasing their production profile in the face of such technical obstacles is the only thing that excites and challenges the people who work in the business. The financials will do what the financial will do.

Today the U.S. production sits at 10.5 million boe / day. This number is expected to be 10.65 million by the end of May 2018. That is 2 million boe / day higher than when OPEC implemented their production sharing agreement in November 2016. In shale the US natural gas production over past 50 years equalled.

1968: 51 bcf/d
1978: 52 bcf/d
1988: 47 bcf/d
1998: 52 bcf/d
2008: 55 bcf/d
2018: 81 bcf/d  (forecasted)

Shale, in the past ten years, is responsible for a 47% increase in the deliverability of natural gas in the U.S. Is it any wonder why the prices are so low? If industry increased deliverability by 8% in the prior 40 years, is this considered out of control? The fundamental collapse of the natural gas marketplace would seem to indicate that it is.

Conversely I don’t think producers have thought through the implications of implementing the Preliminary Specification. What happens when the $1.6 trillion in capital that currently resides in property, plant and equipment is retired through the decentralized production model? Clearly their legacy costs of oil and gas exploration and production / boe are going to go down. But only after the investors who have supported the industry are compensated and the assurance is given that they will not be directly subsidizing the consumers again. Destruction of the natural gas business was quickly followed by the destruction of the oil business. Today the financial health of the producers, when you consider the bloated nature of property, plant and equipment on the balance sheet, is astonishing. It is worthless and demands capital to maintain an operating deficiency. Even though the investors are not returning there is no discussion or understanding in the industry of what is happening or what to do about it. Returning money to shareholders who provided it in the past certainly doesn’t stir any discussion outside of this blog. There must be wells that need to be drilled.

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.

User Community Developments, Part XII

Administration and accounting are driven by deadlines. The need to report in a timely and accurate manner within the prescribed period. These leave little opportunity for the accounting and administrative resources to apply the technologies that are just at their fingertips, technologies that could make their lives that much more efficient. The time to do this type of work is never, and the cost to apply these technologies is beyond everyone’s budget. The difficulties faced in one producer are replicated within each and every other producer. The inability to organize and implement a solution across the industry is the primary reason for the failure to advance beyond primitive systems. This is where the user community and the service providers step in and take the opportunity that is present here and realize it on behalf of the oil and gas industry. The cost of the Preliminary Specification across the industry may be high. The value to each producer is substantial in resolving these issues. People, Ideas & Objects, the user community and service providers value proposition would be realized by all.

Many in the software vendor community may take offense to my comment regarding primitive systems. Particularly since the Preliminary Specification is vaporware on steroids. The thing about vaporware in oil and gas is you get what you pay for. Producers have refused to pay for any systems development for decades now. Oracle left the industry late last century for this reason, and IBM sold out around 2005. If the producers are unhappy about the state of the Preliminary Specifications vaporware then they should do something about it. The maturation of Information Technologies since the time the big IT companies left the industry has been dramatic. People, Ideas & Objects are not a technologically focused solution provider, we rely on Oracle for that. We are focused on the business, but when it comes time to implement the technologies we are certainly able to punch above our weight. We look forward to the opportunity to display these capabilities when the time comes.

As we discussed yesterday the specialization and division of labor that the user community and service providers will be able to implement will be far greater than one producer can, or could ever do. The same is the case for the innovations that can be made on the processes that are under management by the People, Ideas & Objects software that will be managed by the individual service providers. This will also apply to their ability to implement their technical excellence into the process that they’ll manage. It would seem contrary to think of technical excellence as a competitive advantage when your processing large data sets. However, it will be in these large data sets where I think the value and the quality of information that the service providers will generate for their clients, the oil and gas producers. We are clearly defining a division of labor between computers and people with computers doing the processing and storage, and people conducting the leadership, problem solving, decision making, creative, collaboration, research, ideas, design, planning, thinking, negotiating, compromising, innovating and financing. Tasks best suited for our user community and their service provider organizations, not computers.

When we consider the differences, productivity, and overall benefits of organizing the administrative and accounting resources in the fashion of the user community and service providers. We see a distinct difference to the current method that is employed by each and every producer working hard to get these administrative and accounting tasks done. People, Ideas & Objects are proposing a better way, one in which the performance of the user community and service providers will be driven and capable of providing incremental value for the industry and each individual producer. Our value proposition is wholly dependent on the configuration of the service providers as described within the Preliminary Specification. Without that configuration the overhead costs will not become the industry based variable overhead costs that provide so much flexibility to each of the producers operation. The competitive advantages of the user community and service providers bring a level of competition and quality to the fields of administration and accounting in oil and gas. These attributes replacing the focus on cost control and efficiency that each of the producers struggle with today. Without the user community and service providers as described within the Preliminary Specification the industry and producer will be unable to deal with the profitability issue that plagues them today. And they won’t be able to address the future issues and opportunities without them either.

People, Ideas & Objects have proposed a viable and valuable idea in the Preliminary Specification, its user community and service providers. Compared to today’s situation it is a clear decision as to which method should be chosen. The question that I have is what alternatives do the producers have? If there’s a better way in which to configure the overhead costs of the oil and gas industry, what would that be? If there were any alternatives I’d be surprised. The development of the Preliminary Specification took me a while to figure out and I don’t see anyone working on it anywhere else. Which begs the question, what’s the hold up in moving forward?

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations. Setting the foundation for profitable North America’s energy independence. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.