Attributes of People, Ideas & Objects System Integration

We need to address the integration of the People, Ideas & Objects applications, and the services of the service providers into the producer firms when the user community has completed the development of the People, Ideas & Objects applications. First I would like to address the issue of funding for the integration, and the larger issue of where the funds for the service providers are derived from. And that is to say not me. Whereas the user communities funds are derived 100% from People, Ideas & Objects we provide no funds to the service providers, ever. They are licensed by People, Ideas & Objects to manage an exclusive domain or process of the application. And therefore access the applications. They are also owned and operated by members of the People, Ideas & Objects user community. It is therefore on that basis that the service providers are deemed to be self funding in terms of their needs. And that would include any investments that were required to initiate the establishment of their services. We feel that with the license and their expertise, the ability to leverage these assets and skills in the financial community would be possible to help establish the service provider in terms of any initial investment requirements. Recall that we see the service providers are undertaking the responsibilities for the administration and accounting capabilities of the oil and gas industry. And as such would earn as their revenue stream the $40 to $60 billion in annual G&A expenses currently incurred by the producers.

Integration, or implementation of the software therefore clearly falls under the jurisdiction of the service providers. They will charge the producers for the costs of the integration of the process that they manage. These will be the first costs that the producer face outside of their initial development costs which they paid for when the project was commenced. The relationship with the service provider will be under a service level agreement and be based on the activity, or non activity of the producer. If there is no activity, shut-in production, there will be no service fees billed by the service provider. This will be a mandatory requirement and is included in all of the People, Ideas & Objects licenses. The Preliminary Specifications decentralized production model requires this feature to be present throughout the service providers.

With regard to integrations I have never been a fan of the big bang ERP integration. There are too many elements that are being managed poorly and too much information being lost in the process to make them practical. However, what we do have is an interesting and unique situation. A cloud computing based offering that is fully funded. Our hardware and software, development and user community is fully paid for as a result of the way we are being funded. Read our Revenue Model for further information. With so many disparate components of the Preliminary Specification being integrated into one unified system, the dependencies are very large and not initially well known by the producers. Therefore the tendency, and probably the necessity, due to these dependencies, is to move to the big bang style of integration.

Each service provider is responsible for their own exclusive domain. They will need their source data and will be able to find what they need to prepare that. They will also be the ones that are managing the process on a going concern basis. It is a domain therefore that is more manageable than what a traditional big bang integration is due to the ability of the service provider to parse their domain down to their scope of process operation. The main difference is the domain of data is much larger than what would have been the case in the past. What also may be the case is the state of affairs in the industry. PennWests recent reduction of 50% of their administrative and accounting people led to the capitalization of royalties. The quality of the accounting by the time we get to the industry integration may be tragic, and the number of people left in the industry may be minimal. That’s also considering the transition in terms of the number of resources that have moved from the producers to the user community and service providers before the integrations begin.

What I therefore see is a massive game of musical chairs where the producers layoff their administrative and accounting people and the service providers rehire them. These people then reengineer the data into the new processes within the service providers that they are re-employed by. In a world where companies are currently cutting half their staff and capitalizing royalties. I don't think this game of musical chairs sound as off the wall as it might have a few years ago.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable 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. 

An Individual Plan

Having invested your time and effort as an early adopter in the early years of the user community of People, Ideas & Objects. You were able to position yourself well to take part in the further development of the user community. Now in the post January 2017 environment, the time when the financial resources of the investment community have been forwarded and the project is funded you are able to prosper in this new environment. Now you have established yourself with the revenues and resources to fully participate in the development of the Preliminary Specification, and are beginning the investment of your time and effort in the creation of a service provider to manage the process that your expertise is in. As a result, you have personally managed the transition from the old oil and gas industry to the new one with little difficulty and are well positioned to prosper in what has always been referred to as the new economy.

I think this spells out the opportunity that stands before those people that believe the oil and gas industry must transition itself to a more dynamic, innovative and profitable business model. One that is based on the Preliminary Specification, the user community and service providers. I have no conceptual vision that the bureaucracy will be continuing and in control in ten years time. If they do, there are two things I can guarantee, they are losing money, and there are ten years fewer gas reserves. Losing money has to stop and the people that will stop it are the people within the industry who choose to act and take the opportunity that is described in the first paragraph. It is the individual actions of the people in the industry that will make the industry the dynamic, innovative and profitable oil and gas industry. Their first act is to commit to People, Ideas & Objects, the user community and the service providers. And then to continue to act for the remainder of their careers in the best interests of the most dynamic, innovative and profitable oil and gas producer.

To act is counter to the bureaucracies best interest. To act is counter to the bureaucracies ways and means. To act is the natural way in which we respond to a situation. With the user community in control of the Intellectual Property that makes up the Preliminary Specification, and the derivative works of the user community. It is the participants within the user community who will be to determine what is the manner in which to conduct the most dynamic, innovative and profitable means of oil and gas operations. When it comes to the policies and procedures of the oil and gas industry, by controlling the Intellectual Property, the user community participant will be the ones that write these. Giving them the power that was held by the bureaucrats but never used.

However, not only will the user community have the ability to write the policies and procedures. They will be the exclusive audience of the People, Ideas & Objects developers. It will be through the software developers that they are able to use their understanding and creativity to build the kind of applications that can make the difference in the oil and gas industry. Solving the issues and taking advantages of the opportunities that occur in the industry as they happen. When a new business model is developed that can bring new value to the industry, the software can be developed and implemented at will by the user community. No more muddling along for decades while money is lost irretrievably.

And it will be those early adopters who participate in the user community before the January 2017 funding deadline that will have the opportunity to establish the service providers. We all need to make a transition from the old economy to the new. Its important that we get this one right.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable 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. 

Changes Needed in You, the User

Back to our primary focus at hand, the user community. People, Ideas & Objects software developments are user community based. Having software developers without a user community that is organized and focused is a waste of everyone’s time. People, Ideas & Objects and our user community are providing the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. The only way to do that in the 21st century is through user community based software developments. I can't express our commitment any clearer than this. This however, requires change at every level in the industry.

We have been working on user community developments since the completion of the Preliminary Specification in November 2013. Our plan involves securing the 30 or so leadership positions of the user community before the January 2017 industry deadline. This industry deadline involves progressive producers and investors funding the development of the Preliminary Specifications budget at that time. With the leadership team in place we will be able to provide the industry with the overall vision contained in the Preliminary Specification, and the user community in which will be able to provide the alternative means of oil and gas operations. An alternative to the current bureaucracy that is losing money, which is leaderless and unwilling to change.

Participants in our user community are empowered to make the changes that are necessary in the oil and gas industry. If an individual sees an element within a small part of an application that is incorrect they will have the mechanisms and processes to make the changes to correct these through the user community. In addition, if an individual develops a new business model that provides substantial value for the dynamic and innovative oil and gas producer. They can have that implemented through the user community as well. Contrast this capability to affect change with the frustrations that the individual faces in the current bureaucracy. Where if you propose something new and innovative, your most assuredly are going to be laughed at.

There is also the scope and scale of the People, Ideas & Objects Preliminary Specification and user community. Any changes that you do make will not be populated to only the one company that you are currently working for. With the cloud computing model, and the structure of the proposed system, ideally these changes would be populated across the entire industry. Providing the user with not only the means in which to make the changes, but also the motivation in having those changes impact the entire industry.

A person with ideas on how to make things better for the industry would have plenty of opportunity to express themselves in this new community. The stifling environment of the bureaucracy has taught you to shut up and sit down. To drone on in an unappreciated manner where the frustration of having to deal with obtuse systems and procedures, designed for unknown criteria, clog and spew. If there is a chance that a system can be developed that eliminates the technology focus. One that is designed to understand the culture of the oil and gas industry. One in which your participation is the priority of its development. People, Ideas & Objects is it.

However, for this to happen your participation is required. It all starts with you. And that is how these changes will begin, and that is how the changes that we discussed in this post will happen, with your action. Time to dust off that computer at home and start participating and begin the developments of the user community. It really comes down to the change you make in yourself. Forgetting how to be a drone and becoming a proactive change agent in the oil and gas industry.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable 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. 

What Are Your Plans?

If we position ourselves as the alternative means of organization for the investors and progressive producers in the oil and gas industry. What does that mean for you as an individual that is interested in participating in this community? If you're asking yourself that question then it assumes that you have some entrepreneurial skills or desires that need some exercise. If that is the case, it would be incumbent upon you to spend some time reviewing the Preliminary Specification in detail. Understanding its differences and how it impacts the areas that you want to spend your time in oil and gas.

The next thing you might want to look at is our time lines and the prospects of change being implemented within the industry during that time period. Will these changes happen? Will they happen in that time frame? What would be needed in order for you to leave where you are working in 2018 or later and move to your own firm operating as a user community participant and service provider? What level of organization and preparations on your behalf would be necessary in order to make that change. Are the next four years adequate?

Not everyone will be able to make the transition from the bureaucratic systems that are operational today to the future that we are discussing. Look at any business magazine and they frequently discuss the effect that Information Technology is having on business. An effect very similar to the one here at People, Ideas & Objects. Like so many transitions in the past some people just can’t make the transition. Having time to prepare certainly makes the change easier from most people’s point of view, I think. Having control of the changes is maybe the most effective way in dealing with these changes. Therefore taking the initiative now to plan and prepare for the possible changes in the industry in January 2017 and 2019 might be a wise and prudent investment of your time and energy. After all what is the bureaucracy offering you as an alternative.

There are no guarantees in life. And I am certainly not in a position to provide anyone with anything. There is no prospect of People, Ideas & Objects proceeding within the industry at this point. What we need to do however is to offer the investor community with the proven capability to operate the industry if they should choose to decide to make the transition to People, Ideas & Objects Preliminary Specification. There is nothing I can do to prepare for that possibility. Other than to plan and prepare for the Preliminary Specification, the user communities leadership and general communities development, the service providers and the app marketplace. And that requires people such as yourself to make the conscious decision to leave what they are doing now, down the road in 2017 or later, and plan and prepare themselves in their own interest as members of the user community or as service providers and app marketplace providers.

Its a chicken or egg type of thing. The individual acts of people, doing this for their own self interest in developing a sound service based business in oil and gas. And for the purpose of developing a solution on providing the innovative and profitable oil and gas producer with the most profitable means of oil and gas operations. The fact that time is on our side is the real value in considering this opportunity today.

We will be knee deep in technology in 2017, that is one thing that will be a certainty. Therefore it would be a good time to take some technology courses to help in this transition. I can certainly recommend that people take courses in relational databases and Java. Those technologies, and a general understanding of those technologies throughout the user community, service providers, and of course the app marketplace might, dare I say, be a mandatory requirement by the time we get there. In order to fully understand and appreciate the opportunities and what you can do in the application requires a full understanding of what you can do in the technology. The technological concepts are opening up new conceptual ways in which the People, Ideas & Object applications will be able to function. Service providers who are on the front lines of providing the producers with their needs could really provide a much higher level of service by fully understanding the relational model and Java, as well as their accounting or administrative oil and gas industry knowledge.

The Preliminary Specification and user community provides the oil and gas producer with the most profitable 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. 

Where's the Rest of the Plan?

We have been discussing the software development plan of People, Ideas & Objects and the user communities development for the past eight months. During this time we have not discussed the period of time beyond the development of the user community, January 2019, when we are actually into the developments of the software. There are a number of reasons for that which I would like to present today. First of all these details will be determined when the resources of the industry are secured and the user communities leadership team are in place in January 2017. It will be at that time that we will have a better ability to determine some of the key issues and opportunities that will be involved in the final software development.

First of all, as of right now it is somewhat of a moving target to make any estimate of the timing of these developments. The technology industry has gone through a significant maturation of its technologies in the past decade and we are the recipients of the value from this maturation. What we propose to do with People, Ideas & Objects and the user community could only really have been done in the past few years. And with today’s technologies it would be significantly easier and more robust than if we did start several years ago. I think I should thank the bureaucracy for holding us up this long, it really has added significantly to our product quality. Particularly Oracle Corporation is going through some changes that I find very dramatic. Their Oracle Database 12C is a significant leap forward in terms of cloud computing and they are committed to that form of delivery. Their Oracle Fusion Middleware and Oracle Fusion Applications which were a complete, ground-up writing of an ERP system based in Java and other Oracle technologies were released in 2010. They are now becoming robust. And we are the recipients of the value that is generated by them.

Similarly development tools and programming languages have been through revolutionary changes. Java is very robust and we are now able to fully implement our concept of “asynchronous process management” throughout the Preliminary Specification without any difficulty from a programming point of view. This enables us to introduce these concepts that will alleviate many of the timing issues that have traditionally disrupted the accounting processes in oil and gas. Software development teams are also finding different ways in which to operate that provide new levels of productivity, which is good. However the real benefit is the closeness that they can achieve to the user community and the quality in the software product deliverables.

There is also significant stress in the oil and gas industry. It seems every day there is another CEO or CFO that has left their post at their firm. What is the future direction of the oil and gas industry? Who is offering a discussion as to where the direction is headed? I don't see anyone taking up the discussion and nothing but people sitting on their hands trying to survive from quarter to quarter. As good as the oil prices are they can't make up for the costs in the oil business and cover the natural gas losses forever. Projecting this status out past January 2017, let alone to January 2019 for me is very difficult. I can't see what the industry is doing at that time. If I were in industries shoes I would be desperately looking for solutions to this the mother of all muddling along periods.

If the industry wanted to buy some time they could accelerate their forwarding of the financial resources to People, Ideas & Objects from January 2017 to today. That would cut 2 years off our time table. We would be able to recruit the leadership team in a much shorter time period and begin developments much sooner, probably in January 2017. That might be worth a few hundred billion dollars to them. Otherwise we'll stick with the timetable and the plan that we have. To project the software developments out beyond January 2019 and into the future software development realm is into the great unknown. We could be looking at a new generation of applications, programming language features, tools and development methodologies. The productivity and quality of which we could not even imagine today. So we will look forward to that day and stick to our plan and enjoy the scenery, that is the show being played out in the oil and gas industry.

The Preliminary Specification and user community provides the oil and gas producer with the most profitable 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. 

Development of the User Community

Our software development plan sees us continuing on our primary focus of developing the user community for the next five years. This leads us into January 2019 when we will commence developments of the Preliminary Specification with the full user community in place. We have allocated the five years that I feel is necessary to establish the user community in the oil and gas community. The role and responsibilities of the user community in the developments of the software are one thing that we are unwilling to compromise on. But there is also the broader issue of the role and responsibility that the user community has in terms of the developments of the oil and gas industry itself. This is reflected in the user communities vision and is expressed in the power and authority that the community holds to define the ways and means of the administration and accounting of the innovative and profitable oil and gas producers. The People, Ideas & Objects user community is not your typical user community, it has the power and the means in which to determine the direction and priorities of the issues and opportunities of the oil and gas industry.

We have embarked on the beginnings of the development of a leadership team that will begin the formation of the user community. There are almost thirty positions that were identified just prior to our vacation that are being actively recruited. These include the board of directors, the C class executives and the product owners that will be the critical parts of the various software development teams. Scroll back to see if these positions have any appeal to you or someone you might know, and then follow the procedure to join here. Ideally we would like to have these leadership positions in place for the January 2017 deadline we have established for industries financial participation. These resources will fund our budget in its entirety and therefore we can begin to develop the remainder of the user community over the following two years. These resources will also be used to set up the software development team and have them prepared to start the software developments in January 2019.

I can not stress the importance of the users involvement in these software developments. The complexity of the oil and gas industry is second only to the space industry. Approaching these software developments in the traditional manner of token user development would be a waste of money and a waste of people’s time. It would also be a waste of a significant opportunity that we have to do this correctly. User participation in determining what and how the systems that they will use are the only systems that work and are usable for the long term. Just compare Google and Apple, which are heavily user represented, to the long term disappointment that Windows provides. To date no ERP system has been developed with user involvement, that is at least in oil and gas. They may claim to be, however, in comparison to what we are discussing here, and the investments that we will be undertaking to develop the user community, there will be no comparison.

There are thousands of individual positions within oil and gas that need to be captured within the Preliminary Specification. Each position requires an individual at least six months in order to fully understand and learn how to do the job that is being done. This knowledge and understanding needs to be captured by the user community in order for the user to be identified and supported within the systems that they need. That takes time and money to undertake. And that is why our budgets are as high as they are. Significant levels of analysis needs to be undertaken to ensure that the user is supported by the systems that we develop. That the work that we do is to ensure that the tasks that are best left to the computers are done by the computers, and the work that is done by the users, the leadership, the unstructured problem solving, acquiring and processing new information and deciding what is relevant, the creativity, the collaboration, research, generation of ideas and design are completed by the people to ensure that they provide the oil and gas producer with the most profitable means of oil and gas operations.

The Preliminary Specification and user community provides the oil and gas producer with the most profitable 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.

Advantages of a Dedicated Software Development Capability and User Community

It has been a while since we have had the opportunity to discuss the decentralized production model of the Preliminary Specification. The decentralized production model is one of the business models that are implemented in the Preliminary Specification and will be available to those producers that actively get involved with this community and participate in its development. One of the important elements to remember is that this model provides significant value for the producer, when it is developed. And as it is with software today. Organizations are defined, supported and constrained by the software that they use. It is therefore important that industry adopt People, Ideas & Objects and the user community in order to have the tools to effectively deal with opportunities to implement these and new business models that may provide further value to the innovative and profitable oil and gas producer. The People, Ideas & Objects software development capability and the user community being the type of tools that industry can use to eliminate the constraints of software in their organizations and enhance the definition and support of these business models.

The decentralized production model works through a variety of different modules in the Preliminary Specification. It works to maintain a level of production discipline across the industry in order to avoid the situations where overproduction of natural gas occurs. The method of production discipline is implemented through an allocation method based on profitability. If a natural gas property can be produced profitably then the property will be produced. If the property is incurring a loss then the properties gas production will be removed from the marketplace. This is the necessary methodology to ensure that the marketplace is not supplied with the over production of natural gas and industry wide losses. Situations like what have been the case for the last number of years where overproduction brings down the natural gas prices to the point where all natural gas properties are incurring losses.

The decentralized production model does this by first of all stripping the innovative and profitable producer down to the C class executives, the engineering and earth science resources, land and legal and some support staff. The remainder of the administrative and accounting staff, including the production and exploration administration staff are reorganized into service providers who are focused on the individual process and use the entire industry as their client base. It is with that scope of industry wide clientele that they will be apply the automation, specialization and division of labor toolsets to their process to make them more efficient and cost effective for their producer clients. It will also be that they will bill the individual Joint Operating Committees for the work that they complete on behalf of the properties in what we call the task and transfer network. A fundamentally different methodology in comparison to today’s accounting treatment of the producer incurring the overhead.

Therefore during the times when a property is shut-in due to low natural gas prices the individual service providers will receive no activity from the properties task and transfer network. And therefore there will be no billings generated by the individual service providers for those months that the property is shut-in. And therefore that property will report a null operation. No revenues, operating costs or overhead. Only the costs of capital will be recorded in the accounts for that property during times of shut-in operations.

The advantages of the decentralized production model are many. First of all the property is reporting a null operation. It is not reporting a loss on operations. These losses on operations, as they are incurred today, need to be added to the reserves costs and therefore need to be recovered in the future by higher natural gas prices. Another advantage of the decentralized production model is they save the reserves for the time in which they can be produced profitably when prices are higher. And they remove the excess, unprofitable production from the natural gas marketplace putting upward pressure on the natural gas prices. Cost control of the overhead items becomes a feature of the decentralized production model. This is attained through the service providers managing their operations with the understanding that at any time their operations may experience reductions in revenue from producers shutting in production. Lastly the producers profitability, with the lower production profile, will be higher than the profitability at full production.

It is these types of situations that the capabilities of a dedicated software development team and an enabled user community provide the innovative and profitable oil and gas industry. These capabilities need to be purpose built and require the active long term participation of the oil and gas industry. They also require the financial resources of the oil and gas industry for today and tomorrow. As we stated in yesterday’s post, no one is going to do it on behalf of the producers. I think it is clear that the monetary value of these changes, which I have quantified in the trillions of dollars, are only in the best interests of the oil and gas producers.

The Preliminary Specification and user community provides the oil and gas producer with the most profitable 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. 

And We're Back

Its good to be back. When we left we were discussing the various positions within the leadership team of the user community. The board of directors, the officers and the product owners. We are going to continue to focus on the user community as our primary concern. Having systems developed without user community participation will be useless in the future, even more so than they are today. It is the user communities development that we need to be concerned about. This is the difficult aspect of People, Ideas & Objects Preliminary Specification that needs to be developed. We have set out to have the user community prepared to begin the software developments of the Preliminary Specification in 2019, therefore we are committing to a full five years of user community development. We also established January 2017 as the time in which the producers will be called upon to support the user community and the software developments with the funding necessary to proceed to our first commercial iteration.

If you haven't had the opportunity to read the user community vision recently, I would highly recommend a review of it again. This is not your typical user community. It is significantly different in that the People, Ideas & Objects user community has the power and authority to affect the changes within the industry to provide the oil and gas producer with the most profitable means of oil and gas operations. As we proceed through the development of the user community, this capability will begin to evolve and develop into the means in which we are able to offer the investor community a choice as to how they want their oil and gas assets operated. On the basis of the old tired and stale bureaucracy, or with us on the basis of being the most profitable means of oil and gas operations. The user communities value proposition is tangible and substantial. In the era of shale, the difference in value is in the many trillions of dollars.

Our fight with the bureaucrats may have just begun. They have never been challenged before as they are challenged by the threat of the now forming user community and Preliminary Specification. Be wise to their ways and be cautious to any open discussion of this project. Make sure you are not speaking to someone who has the wherewithal to make your life miserable. Some characteristics of bureaucrats are consistent in that they are petty, bitter, and can be vengeful to those who they see as having an advantage. Please do take care.

The definition of our user communities leadership team was the point that we left off prior to our vacation. We are looking to recruit these positions and have them in place prior to January 2017 as tangible evidence of our ability to prove to the industry that we have the capability to provide an alternative means of oil and gas operations. And then with the industries financial resources we will be able to continue with the remainder of the user community developments and actually begin software developments of the Preliminary Specification in 2019. If you, or someone you know, would be interested in one of the positions listed in the user community vision, please contact me.

One of the key advantages of early participation in the user community is the ability to participate in the service provider marketplace. User community participants will be those that are provided with the exclusive opportunity to establish the service providers that service the oil and gas producers with their administrative and accounting services as defined in the Preliminary Specification. As we have discussed before these service providers will be participating in a new sub-industry that is being established through the reorganization of the industry that is being undertaken by the Preliminary Specification and the user community. The service providers will have as their revenue stream the approximate $40 - 60 billion in annual G&A costs of the producers reallocated to them, as revenues for the administrative and accounting services they provide. A significant business opportunity for those service providers and user community participants. In addition the budget for the developments of the first commercial iteration of the Preliminary Specification contains user community development costs in the range of $333 to 667 million. There are significant business opportunities in terms of the long term prospects for anyone who wants to provide the oil and gas producer with the most profitable means of oil and gas operations.

The Preliminary Specification and user community provides the oil and gas producer with the most profitable 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. 

The Three Building Blocks

The power in which the industry is operated. That is who is running the show is currently held within the bureaucracy. That low pitched hum which is occasionally interrupted by the grinding of gears is the quiet droning on of our favorite people. If you want to make a change to the business model in which the industry operates? You'll have to talk to, well there is no one. And there is no way in which you can make any changes. It is what it is. You muddle along and hope for the best. The industry has always survived and will be around tomorrow, so just carry on. The problem is it isn’t working anymore. Now that may just be my biased opinion, but the industry has a problem with its profitability. And the bureaucracy has no answers.

What I have proposed is that we replace the bureaucracy and put in place the user community and People, Ideas & Objects. It will be this user community that will have the power to effect the changes to the business model that the industry operates on. What we have proposed is the Preliminary Specification and the decentralized production model as a start. The control of this business model will be in the hands of the user community. It is they who will have the power in the industry when the bureaucracy is removed from the landscape.

It is also the user community that the industry will turn to in order to have their changes made. They will be the ones to go to, unlike the bureaucracy who have no one. The user community will be able to take the industries input and effect the changes in the business model to accommodate the industries needs. That assumes of course that the industry and the specific producers participate in the user community. The user community is open to all within the industry, however, there are requirements of the participants.

The user community also has a budget. And not just any budget, a budget that is similar in its makeup to People, Ideas & Objects budget. Please review our Revenue Model for a better understanding as to the differences in our budgets makeup. In essence we are not blind sleepwalking agents of anyone who will feed us. The Revenue Model is based on the Intellectual Property of the Preliminary Specification which determines what is required in terms of software development, as dictated by the user community, and the user communities costs. It is those determining factors that set out the budget for both organizations and then determine what the fees will be for the producers to use the software. The software and user community that provides the producers with the most profitable means of oil and gas operations.

These three components make up the fundamental power that the user community has. Control of the business model, the key point of contact for changes, and their own budget based on its needs makes this user community not your grandfathers user community. With this power comes the associated responsibility of operating the industry. And providing the industry with the most profitable means of oil and gas operations. One day the bureaucracy will be gone. They will either fail or just give up. Either way the industry will be looking for an alternative means in which to operate. I am proposing that we organize ourselves on this basis.

We have at this time selected the Oracle Fusion Applications and the complete Oracle stack of technologies as the technological base for our solution. We have a product vision contained within the Preliminary Specification. And now we have this user community vision in which to build the user community to operate the industry upon. I think we are a formidable alternative to the bureaucracy. We need to organize ourselves to make this opportunity real. The industry, I think, is in desperate need of a solution and the bureaucracy has no plans, hopes or prayers.

The Preliminary Specification provides the oil and gas producer with the most profitable 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. 

Clarification of the #User #Development Phases

We have in People, Ideas & Objects a somewhat complicated and possibly not well communicated process of how the user community will develop over the course of the next few years. This post will hopefully clarify the various phases that I see the users going through in terms of their interaction within the user community and People, Ideas & Objects. The first thing to do is to provide a clear definition of who I see being a member of the user community. And that is anyone within the oil and gas, the oil and gas service industry or any related businesses that have a desire, capability, or idea on how to provide the oil and gas producer with the most profitable means of oil and gas operations.

We hear how technologies are maturing and becoming more disruptive in the marketplace. That is true and for oil and gas the Preliminary Specification is that technology. The common theme is that people will be displaced and rendered unemployed as a result. This has been the common theme throughout the computer age. They say this time its different due to the fact that the maturity of the technologies will have a much broader impact. We see with the $170 billion in opportunity costs the scope of the impact of the technologies, and they are positive.

Nonetheless I believe there will be some displacement. To those that choose to participate in the People, Ideas & Objects developments. They will be able to take the front row seats and be the first to select which areas appeal to them the most. I think the types of work that we will be doing in the future will be different. We will be offloading the storage and processing to the computers. And we will be left with the innovation, the collaborations, the thinking, the decisions, the problem solving, the creative work, the research and the generation of ideas. Sounds to me like a better place than where we stuff another ream of paper in the printer.

There are three phases that the user participant goes through during the years we are following our plan. They are joining our network on Twitter @piobiz, then committing to the user community and participating in the developments, and lastly, if so inclined, establishing a service provider organization to manage a process for the oil and gas producers. These three phases of joining the user community are detailed as follows.

Joining @piobiz today on Twitter will allow users to keep up with other users and communicate with one another. If you use Hootsuite you can participate in conversations with other users. Generally this is a loosely formed network of like minded individuals that can informally participate, or just keep up to date on activities in the user community as it develops. There are no costs and there are no commitments, just participation. If you are concerned about the bureaucracy then set up an anonymous Twitter account.

The second level requires a little bit of effort and commitment from the user participant. This next level requires that you introduce yourself to the general community and sign the user license. I don’t expect anyone having to go to this level for some time as our developments are not scheduled until 2019. Intellectual Property is the glue that binds the user community together and requires the user community participant to sign the user license. Recall in the budget you are paid for your contributions in exchange for your Intellectual Property Rights. We acquire the IP this way through the user community license, which in turn provides you with unencumbered access to all of the Intellectual Property that is contained by myself or People, Ideas & Objects. I then use that IP to assess the oil and gas producers with the fees necessary to support the developers and user communities.

The third tier of the user community is the service provider which is the mature user community participant that signed the user license and participated in some element of the development. They have intimate knowledge of some aspect of the People, Ideas & Objects Preliminary Specification that the oil and gas producers need in order to be the most profitable oil and gas operations. These user community participants may want to then establish themselves as service providers and offer these services under a service provider license. These will be open only to those people who participate in the user community. They can then set up a firm and provide these services, a process or subprocess management, to the oil and gas industry as their client base. These service providers will have as their revenue streams the current G&A expenditures of the producers that will be diverted to them by the decentralized production model. These revenues are currently estimated in the tens of billions of dollars.

This may seem like an unnecessarily slow process that could otherwise be done much quicker. Remember we are plotting a revolution and the establishment of the service providers is critical to the success of the whole project. It may seem slow, but there is much to do so join me today and lets get the word out.

The Preliminary Specification provides the oil and gas producer with the most profitable 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.

Allocation of our Margins

One thing about being in the software business is the healthy nature of the margins that are realized. For example Microsoft Office earns 73% profit margins for Microsoft. That also assumes you are able to attain the point in your business that you actually earn any revenues. The real downside of the software business is that all of your costs, the actual cost of development, is conducted without the benefit of any revenues. So you have to incur the costs of development before you get to the point of earning any revenues. Such is the way of the software business. And with People, Ideas & Objects large scope and scale, and the small market for ERP systems that the oil and gas producers make up, we have implemented a Revenue Model that is fundamentally different than most software companies. That is, we are developing the software with revenues from the producers. As the scope and scale is beyond the capabilities of the investment community.

Nonetheless the lead times to get to the point where the revenues are realized are significant. We are planning to commence developments in 2019 and complete them in 2021. I started working on developing oil and gas systems in May of 1991 and signed my companies first comprehensive development agreement with Oracle in February of 1992. It is coming up to 23 years that I have had this vision of the Preliminary Specification rattling around in my brain. It represents a life’s work and a life’s investment. I don’t count the amount of money that I have invested in this software nightmare, but it is substantial. The point is I am either crazy or I'm right. And I am very satisfied with being crazy.

So it is to the margins of our budget. I have allocated a 25% Intellectual Property Royalty, or $500 million to 1 billion to myself, the owner of the copyright of all of this material. I know this will cause some backlash in the industry, you understand that I am satisfied with my position in life. Alternatively you can start with your own vision as I did in 1991 and enjoy the smooth and glorious ride that offers. Bureaucrats will hold this royalty out as a reason not to proceed. Denying the investors the almost $100 billion in annual opportunity costs that are lost by using their current business model.

There are additional profit margins of 25% totalling $500 million to 1 billion as well. These are the profits of the firm and are distributed as dividends to the shareholders. It is true that I control 100% of the firm and as a result these dividends will end up in my pocket. I provide oil and gas producers with the most profitable means of oil and gas operations. This is a tangible difference in our business model. The question becomes how do I realize this value that I generate for the industry? The shares are worthless. Once the development is done the revenues will fall significantly and define a much smaller capitalization. Do I have to sell the company to realize the value that I earn? The methodology defined above is the means that I choose to monetize my efforts, and is commensurate with the value that I provide to the industry.

The Preliminary Specification provides the oil and gas producer with the most profitable 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. 

#Oracle Budget

We now turn to the Oracle end of our budget. Oracle plays a critical part in the People, Ideas & Objects Preliminary Specification. Their Fusion Middleware and Fusion Applications are the foundation of the eleven module Preliminary Specification. We also use Oracle’s database, Java, hardware, services and solutions. One could suggest we are an Oracle shop. However with this level of commitment to these product categories we can secure Oracle’s commitment to provide the oil and gas producer with the most profitable means of oil and gas operations.

Lets start off with something tangible. Hardware is used by People, Ideas & Objects to run the People, Ideas & Objects Preliminary Specification in a cloud computing configuration. Oracle engineers their hardware to run their database and Java technologies at far faster speeds than the competition. Evaluating Oracle on a cost / performance basis is a slam dunk. No one can currently come close to the types of performance that Oracle is able to attain with their hardware and database. This is one of the premier reasons that we have selected Oracle. This is the reason that they are the dominant database technology in the world and will stay that way as long as Larry Ellison remains the head of the firm. Larry Ellison is the Steve Jobs of the corporate world, and Oracle is the Apple. We have therefore budgeted $100 to 200 million in hardware for providing the Preliminary Specification to the oil and gas industry on a cloud computing configuration. This amount of computing power is augmented with additional processing power. With a share of the $25 to 50 million in the services budget being allocated for the use of the Oracle Cloud service for any of our peak computing demand requirements.

The second budget allocation is $5 million for software. This number has no basis in its determination other than it is a best guess as to what the cost will be to acquire the software for the cloud configuration of Oracle Fusion Middleware and Oracle Fusion Applications. There are individual user licenses that are also budgeted and noted below, this is for the one time acquisition costs of the software for development purposes.

There are a number of services that are offered by Oracle that can be accessed through this budget. I mentioned the cloud computing services. There are also Database Administrators, tuning and related services that fall outside of the development domain. These are collected and provided in this budget allocation of $25 to 50 million.

Then we come to the Oracle developers. It has been my experience that you can learn about Oracle technologies through experience, or you can hire their developers to implement that high level of knowledge for you. The ability to hire their developers provides you with the understanding of the technologies at a higher level. One that you would have eventually learned, at substantial cost. I choose the cheap way and have allocated a healthy budget for the inclusion of $150 to 350 million or 450 to 1050 man years of Oracle developers. Undertaking a large development such as People, Ideas & Objects Preliminary Specification and using Oracle Fusion based products demands that we extensively use Oracle developers. They are, in a very significant way, an insurance policy for the oil and gas industry in terms of the overall deliverability of the project.

The last budgeted item is for user licenses during the development for the developers and the members of the user community. These user licenses are for development only. Additional charges will come into play for the runtime use of the application. And the user license charges at that time will be much larger as their will be large portions of the industry using the application, not just the user community and the developers. These licenses include the entire stack of database, Java, Oracle Fusion Middleware, Oracle Fusion Application licenses. These are budgeted at $3,700 per man year for a total of $9 to 18 million.

Oracle brings a unique character to the Preliminary Specification. I am pleased to be providing People, Ideas & Objects applications on their technology. When we add the user community to this we become ever so stronger. We are building an application for the 21st century and now is the time to get involved.

The Preliminary Specification provides the oil and gas producer with the most profitable 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.

#User Defined Software

When does People, Ideas & Objects commit to the user community? How do we prove that we are user based developments? We say that we are user based ERP systems developments, but how do we differentiate ourselves from the marketplace in terms of being user based developments? Is it an important point to be “user community based” in the oil and gas industry? These are some of the questions that I will answer today. And in turn provide the direction and leadership that is necessary for the next phase of what we undertake.

Lets first answer the question “is it an important point to be user community based in the oil and gas industry.” It is critical to have the user provide the developers with the leadership and direction for the systems that they will use, in my opinion. If we look at Apple and Google, both of those systems are developed with heavy user involvement. There is a difference that is both quantifiable and qualifiable. The most important difference to us is the impact that the Preliminary Specification has on the industry. Every individual, producer, service provider, service industry participant, etc are affected. Primarily through the decentralized production model. This demands that the people who are involved in this work today, and those that are involved in it tomorrow are intimately involved in the design and development of these systems. We all know what happens otherwise with the traditional top down approach.

Assume for a moment that we had secured all of the financial resources that were needed for the development of the Preliminary Specification. What would be the first thing that we would do with those funds? It would be to develop the user community. And those financial resources would sit and wait for the day in which they could be used to develop the Preliminary Specification. Until the user community is developed there will be no development work undertaken at People, Ideas & Objects. Therefore the user communities development has to be our number one priority at this point.

To organize ourselves doesn't cost anything and helps us to prepare for the time when the development funds do arrive. It will be at that time that we can begin the actual software developments. As we stand today the bureaucracy is well in control of the situation and they will never participate in the development of People, Ideas & Objects. The CEO and CFO, the investors and many of the people in the industry agree that the bureaucracy needs to be replaced with something in the technology field. The Preliminary Specification is a possible alternative. If the user community for the People, Ideas & Objects developments existed it would make the Preliminary Specification a viable alternative. And that has to be our mission in the short term. To provide an alternative means of organization to the oil and gas industry.

By developing the user community we lose no development time due to the bureaucracies attitude towards us. This is work that we can do without the need for financial resources. Participation is simple, just setup, or use your Twitter account and Follow @piobiz its that simple. Things will happen within that network as a result. Users will be able to communicate with other users. People will be able to keep up to date on all that is happening within that network. And as time passes and the user community grows, the industry will see a viable group of like minded individuals that are capable of providing a means in which to provide the oil and gas producers with the most profitable means of oil and gas operations.

If you are concerned about retaliation from the bureaucracy. A very real concern. Set up an anonymous Twitter account. There is no need for anyone in the user community to take any career risk as a result of joining the network. The purpose of this is to communicate and collaborate around the needs of developing the user community and providing an alternative means of organization to the oil and gas industry. So join me now and lets spread the word to other like minded individuals who know there is a better way.

The Preliminary Specification provides the oil and gas producer with the most profitable 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.

Developer Budget Category

We move on from the User Budget Categories to the Developer Budget Category. In many ways this is a far simpler budget in that it maps directly to the user budget. That is each hour of user community time is matched with one hour of developer time. So the allocation of the time of the developers will follow exactly that of the User Budget Categories that we have already spelled out. The costing of the developers is at the same rate of $185 U.S. as the user community. The main difference is that user community is a third party transaction with an independent business, and the payment to the developers is to salaried personnel. The $185 therefore also includes our overhead for office space, administration, computers, networks and software, etc.

We therefore have the same 1,000 to 2,000 man years of time, or $333 to 667 million budgeted for the developers for the term of the first commercial release. As we will see in the Oracle cost section we have additional developer time of 450 to 1050 man years of their developers joining the development. These are for a variety of reasons that we will discuss when we get to that budget category, however it is reasonable to assume that there will be some mixing and matching between the People, Ideas & Objects developers and Oracle developer categories in the user community.

We have two additional budget line items in the developer budget. The first is “Product Owner” which are positions that are part of the developer team. For the type of development we are conducting these people will represent the user community on the development team. They have broad authority and responsibility and can affect changes to the development. They are the user communities representative on the ground in the development team. They will be selected for their industry experience and knowledge of the specific nature of the module or characteristic of that specific development team. Therefore they will be speaking the same language as the user community. They will be senior in terms of their education and experience and understanding of the oil and gas industry. They will also understand the technology. We have budgeted for 25 product owners, one for each of the development teams. Each product owner is provided with support staff and a discretionary budget. The costs for the anticipated three year term of the initial development is therefore $33.6 million.

The second budgeted line item in the developer budget is for research. This is for oil and gas related research in terms of the work that has and will always be carried out by People, Ideas & Objects. We are a research and software development company. It is the ten years of research that we conducted into the use of the Joint Operating Committee that has brought us to the Preliminary Specification. It doesn’t stop here. As we mentioned yesterday the Preliminary Specification is a framework for solving problems. Expanding our research capabilities will help in providing some leadership and direction in terms of where the Preliminary Specification will need to move to solve future issues. We have therefore designated a budget of $10 million for the three year term of the development to provide for the addition of ten people. And therefore the total budget for the Development Budget Category is in the range of $375 to 710 million.

The Preliminary Specification provides the oil and gas producer with the most profitable 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

Review of the Decentralized Production Model

It has been a while since we reviewed the decentralized production model and I thought that a quick review for the new year would be timely. Our focus lately has been on the value that People, Ideas & Objects brings to its various stakeholders. With $667 million in development funds to the user community, tens of billions in revenues being established in the service provider sub-industry (this being through a reallocation of the G&A of the producers to the service providers), and the opportunity costs of $170 billion for 2013 and 2014 for the producers themselves. This value generation is the opportunity that is open to each of these communities as a result of implementing the decentralized production model of the Preliminary Specification.

Implementing the decentralized production model will be the first material operational solution that the Preliminary Specification has solved for the oil and gas industry. When we move the compliance and governance frameworks of the hierarchy into alignment with the legal, financial, operational decision making, cultural, communication, strategic and innovation frameworks of the Joint Operating Committee. We achieve a speed, accountability, innovativeness and profitability within our producer organizations and Joint Operating Committees. We are also able to solve the operational issues of the industry. This is the value of the Preliminary Specification, the ability to solve problems. Moving the industry away from its muddling along strategy to that of an innovative, dynamic, proactive and profitable industry.

The decentralized production model starts by stripping the prototypical producer down to the C class executives, the earth science and engineering resources, some land and legal, and support staff. The rest of the producer is reallocated to service providers who are focused on a process or subprocess and are using the entire industry as their client base. These service providers are new organizations created as a result of implementing the Preliminary Specification. And are generally owned and operated by the people who are involved in the user community that defines the Preliminary Specification. The service providers form a sub-industry due to their size. With a revenue stream in the tens of billions of dollars, monies that were previously spent by the producers on General and Administrative expenses.

One of the key differences in the decentralized production model is that the service provider will be charging for their service to the individual Joint Operating Committees that originate the transactions. Whether that is for production, revenue or royalty accounting or any other administrative, accounting or overhead item. The service will be provided to the Joint Operating Committee where the production originated and that is where the service fee will be charged. None of the fees for any of the service providers will be charged to the producer firms, only to the Joint Operating Committees.

As a result when the property is shut-in due to low commodity prices, the field data or activity that triggers the service providers to conduct their services, and bill their fees, are not triggered. Therefore no work is undertaken for that property and no service fees from any of the service providers are sent to the Joint Operating Committee that was shut-in. As a result the producer who has an interest in the property saves the reserves for a time when the commodity prices will provide for a profit, incurs a null operation (no loss, and no profit), and removes the excess production from the commodity marketplace allowing for the markets to remain in balance.

The $170 billion opportunity costs calculated above are based on the producers removing 15% of the natural gas production from the marketplace. And in turn they achieve what they prescribe as market rates of $6.70 / mmbtu on average for the year. The decline in production is possible with the decentralized production model because there is a commensurate decline in the overhead that the producer will realize. If they cut 15% of their production they will cut 15% of their overhead costs. Their financials will appear consistent in any production profile as their overheads are now variable under the decentralized production model. For the service provider it may be that they are faced with a 15% decline in their revenues as a result of low natural gas prices. And this is something that they can budget for.

With over 200 years of natural gas reserves, rationing production based on profitability is the only reasonable methodology. That is what the decentralized production model provides the industry. Any producer who produces natural gas at a loss would be penalized in the capital markets for a lack of production discipline. The alternative is to muddle along for another 200 years.

The Preliminary Specification provides the oil and gas producer with the most profitable 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

Contingencies User Budget Category

We come to the final User Budget Category, that being Contingencies. We will incorporate an overall summary of the User Budget Category in this post as well. How quickly we have spent the $333 to 667 million that has been designated for the user community. 1,000 to 2,000 man years of effort is a sizeable effort, and I think this series shows what the user community can accomplish in terms of ERP systems in oil and gas. Building off of the vision of the Preliminary Specification and the Oracle Fusion Applications provide you with a good foundation that will enable you to achieve our objective of providing the oil and gas producers with the most profitable means of oil and gas operations.

The Contingency User Budget Category is set at 6% of the total funds, or $20 to 40 million, or 60 to 120 man years of effort. These funds can be used in any area where we have misallocated our resources and find the need for more. At 6% it is a small percentage of the total funds as I suspect that there may be some areas where there are funds that are left unspent. Those monies can be clawed back into this contingency fund and used to allocate to other areas where there are shortfalls.

There has never been a software development initiative like People, Ideas & Objects. Basing our project in the user community is the only way in which I will proceed. The complexity of the oil and gas business does not make for the traditional ERP systems fit. It is like trying to stick a square peg in a round hole. The industry is too unique to be subject to a standard package of one size fits all industries. The need for the user community to define the processes that it uses, and have the developers build the software based on that user definition is the only way that the user will have what they need to do their jobs appropriately.

What job, and what process have we left untouched in the Preliminary Specification. We are exercising wholesale changes everywhere and on everything in the industry, the service industry and creating the service provider sub-industry. The prototypical producer is changed and how people are engaged with them. It is this level of change that needs to be analyzed and designed by the user community with the resources in the User Budget Categories. It will be the users that determine the actual makeup and means of the industry when the People, Ideas & Objects Preliminary Specification goes live in the industry. And it will be the user community, who will also be represented in the service providers, who will be the ones that make the transition to this new vision, a lucrative and profitable career choice for themselves.

If you see yourself in this new configuration, taking on a different role in the industry. One in which your skills, experience, education or leadership can be of value in the user community. Where you can see yourself as the proprietor of a service provider. Providing a unique process management to the entire oil and gas industry. Where your team uses the most advanced tools and thinking to provide your clients with the highest quality services. Then now is the time to prepare and begin the process of building that future for yourself.

We have now started the second year of our ten year plan. A plan which sees the Preliminary Specification operational throughout the tenth year. Our objective for this year is to get the word out and get like minded people involved in this community. We are at the very beginning, but we also provide the oil and gas producer with the most profitable means of oil and gas operations.

The Preliminary Specification provides the oil and gas producer with the most profitable 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

Earth Science & Engineering User Budget Category

The second last User Budget Category is the Engineering & Earth Science User Budget Category. We have allocated $20 to 40 million, or 60 to 120 man years of user community effort to this area. There will be some overlap from the Research & Capabilities and Knowledge & Learning modules in terms of budget synergies. However, I don't think there will be any other budgeted areas where there can be some joint development work undertaken.

This is a unique area for an ERP system to consider and one that we pay appropriate attention to. Using the Joint Operating Committee brings about an operations focus for all that are involved. That is also reflected in the Research & Capabilities and Knowledge & Learning modules of the Preliminary Specification. This operations focus brings the earth sciences and engineering into focus in the business of the oil and gas producers. It is therefore necessary that we allocate an appropriate amount of our budget to the earth science and engineering areas to ensure that we have included all of the necessary elements that a producer and Joint Operating Committee will need.

Our research produced the Research & Capabilities and Knowledge & Learning modules. They allow a producer to focus on the development and deployment of their scientific capabilities. And to conduct specific tasks such as moving the knowledge to where the decision rights are held. These elements arise more from the business side than they do from the science. I am not familiar with the science from the point of view of the processes that are used in the day to day use and development, outside of capabilities development and deployment. There are, I am certain, many things that I am unaware of that would build value in the People, Ideas & Objects application modules that engineers and geologists would immediately ask for. This budget is for the development of those items.

We are also not recreating the engineering or geological applications that exist in the marketplace today. We are looking to manage the processes that are prevalent within an oil and gas producer that can be more effectively managed in a user driven application. Recall that we have reorganized an oil and gas producer through the decentralized production model. Where the producer is a highly focused unit consisting of the C class executives, the earth science and engineering resources, some land and legal, and support staff. With the remainder of the resources being relocated into service providers. The manner in which these earth science and engineering resources operate will therefore have changed materially as a result. Both production and exploration administration are located in service providers. Therefore the processes that the producers will rely upon will need to be redefined, redeveloped and the software built.

For all intents and purposes the oil and gas producer has changed in material ways and we are unaware of how those affect the earth science and engineering resources of the producer firm. At the same time this area is fully one half of the critical competitive advantage of the producer. And we should be able to take this opportunity to move the processes of the producer firms and move them to a higher level of performance. These are the objectives of these User Budgets.

The Preliminary Specification provides the oil and gas producer with the most profitable 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

Accounting Firm User Budget Category

This next User Budget Category is interesting in that we are achieving many different objectives with the establishment of this user budget category. What we have done is allocated 17% of the User Budget, or $56 to 112 million to the Professional Accounting Firms. This would total 168 to 336 man years of effort. These are the firms that are responsible for the annual audits of the oil and gas firms for compliance to the SEC and other regulations.

The objective here is to have the accounting firms sign off on the People, Ideas & Objects systems in terms of their integrity on behalf of the oil and gas producers. This work is done in the normal course of an audit, however, with the establishment of People, Ideas & Objects there will be a sizeable burden that the producers will have to undertake in order to achieve this sign off. By inviting the accounting firms into the development process, and having the costs of the producers aggregated in the manner that we have, we can mitigate the total costs to the producers, achieve the sign off at an earlier time and achieve a compliant system in the process.

Allocating this workload across the accounting firms that are present in the U.S. and Canadian regions will make it possible for them to acquire the talent necessary for these purposes. No one firm will be asked to deal with this exclusively as that would slow the development work down. The need for these people to keep pace with the developers and the user community would be their responsibility and obligation. Our responsibility would be to implement their recommendations and achieve the sign off.

These funds have synergies with a variety of other pools of funds that are within other User Budget Categories. The Compliance & Governance module holds the coordination and application design roles over the compliance and governance of the producer and Joint Operating Committee in the Preliminary Specification. Its budget is somewhat small but we are looking at this as the overall check and balance of the Compliance & Governance module. Other funds are coming from the Compliance (Tax, Royalty, SEC) category which will be relying heavily on the work that has been done in the compliance areas of the SEC, royalties and tax regimes in publishing technical frameworks. Other miscellaneous resources have been allocated such as the development of royalties in the Partnership Accounting Module.

There are significant resources being allocated to compliance and governance in the Preliminary Specification. When you consider our application relies on Oracle Fusion Applications which have this area covered off well, we will provide the producer with an effective compliance and governance product. The service providers who will be providing the software and services to the producers will also be well versed in the ways that the application operates. This is due to the fact that they will be participants in the user community that are involved in these developments. Moving on after development to provide the software and services on the basis of the decentralized production model.

It is one of the indirect advantages of approaching the compliance and governance and using the accounting firms to sign off in this manner. And I do not wish to sound too derogatory here. By having the accounting firms provide the compliance and governance sign off. They preclude themselves from participating in the user community in any other capacity. Which also precludes them from any participation in the service provider community. Theirs is a unique service which is not dependent on the type of firm that they are auditing. They believe that they can take their people and move them into other areas, such as the opportunity that the service providers reflect, and build value. And with their brand and marketing dollars overcome the common sense of some of the producers. I know different, and I don't want them servicing the People, Ideas & Objects software and I don't want them pushing out the user community from the opportunity that the service provider marketplace provides them. Having the accounting firms conflicted in this regard will keep the service provider marketplace open to those with the experience and skills, and investment in the user community, to service the oil and gas producers and Joint Operating Committees.

The Preliminary Specification provides the oil and gas producer with the most profitable 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

Service Provider User Budget Category Part II

Clearly the establishment of the decentralized production model will be one of the most significant events that will happen in oil and gas industry. It will provide the oil and gas producers with the ability to achieve market rates for their natural gas and by-products. It will establish a sub-industry of service providers that are dedicated to the efficient and effective administration of the oil and gas industry at the Joint Operating Committee level. And make for a thriving sub-industry that can undertake the types of workload the industry needs in the areas of administration, accounting, process design, technology implementation and research. I see a significant infrastructure being built just to support the service providers that will enhance the service offerings to the Joint Operating Committees. This administrative and accounting capability, available on an industry wide basis, is what is needed for the 21st century oil and gas industry.

In addition to the User Budget Category allocation that we discussed yesterday. We will have a variety of synergies with the Joint Operating Committee User Budget Category allocations that we discussed in Part I to X earlier this month. These allocations will help to define specifically what the processes the service providers need to provide. Additional synergies are available from both the Compliance (Tax, Royalty, SEC) and Service Industry User Budget Categories.

It would be nice to have the industry hand these monies over in a timely manner and for this community to begin these developments. However that is not going to happen. We have to stick to our ten year plan and be prepared to implement them on that basis. The bureaucracy is hell bent on our failure. They want nothing of this initiative to exist. And they will do everything in their power to ensure that it doesn’t. Remember that there's strength in our numbers and we have the ability to state that we provide the oil and gas producer with the most profitable means of oil and gas operations. The bureaucracy is certainly in control today. However, the CEO’s and CFO’s are with us, but they can’t fight the bureaucracy either. If they tried to turn the ship, the ship would fight back and they would have a mutiny on their hands. Our appeal resonates with the investor class and they are more frustrated with the lack of performance than we are. We need to get the word out, which is our 2014 goal. This is so that the user community can begin to form and the investor class knows that there are alternatives in the marketplace.

What I can do to make this happen is show you that there is money on the table. And there are significant budgets and revenue streams associated with the work we are doing. From the $170 billion in opportunity costs for 2012 and 2013 for the producers, $667 million in development costs for the user community and tens of billions of dollars to the service providers in terms of annual revenue streams. What exactly has the bureaucracy offered you lately? The structure that I am detailing here is going to appeal to the movers and shakers in the oil and gas industry and together we are going to revolutionize the way that it is run, managed and operated. One in which we are structured to solve the operational issues as they occur. That is exactly what the Preliminary Specification does. By using the Joint Operating Committee the producer is enabled to solve the operational concerns that they face. So issues such as low natural gas prices can be resolved through solutions like the decentralized production model. That is the value of this business model. And the fear we strike into the bureaucracy. The fear that people are actually solving problems and concerned for the performance of the oil and gas industry.

The Preliminary Specification provides the oil and gas producer with the most profitable 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