This One's Nuclear, Part IV

 People, Ideas & Objects observed North American oil & gas producers exhibiting disconcerting behavior. In October and November 2023, I highlighted how natural gas mismanagement and lost market development opportunities impacted pricing. Prices plummeted in July 2007 from a 6 to 1 ratio against oil to as much as 40 to 1 in 2023. We discussed how producers lacked production discipline. Suffered from chronic and systemic overproduction, and could resolve these issues through our Preliminary Specification. Since November 2023, the natural gas crisis has worsened. Reaching a magnitude of over $4 trillion in lost revenue during that 16 year period. A critical shortfall in LNG contracts is hindering producers' ability to stabilize the market for the foreseeable future. Their sole solution is to implement the Preliminary Specification's decentralized production model's price maker strategy. Enforcing production discipline based on the only fair and reasonable basis, profitability of the Joint Operating Committee. It is necessary for them to adopt People, Ideas & Objects, our user community and their service providers drive towards preservation, performance and profitability.

Oil & gas prices in North America have worsened because of chronic overproduction. Adopting our decentralized production model will introduce the most equitable means of production discipline available to producers. If the Joint Operating Committee earns a “real” profit, then it produces; if not, it’s shut in for these business benefits:

• Shutting in unprofitable properties prevents the dilution of a producer's profitable properties' performance, leading to their highest corporate profitability.

Reserves, safeguarding the firm's assets is a role of officers and directors.

• Producers keep their reserves in order to produce them profitably at a later date.
• Producers reduce operating and storage costs by leaving overproduction of oil & gas as reserves.
• Reserves do not need to cover the additional costs from prior losses.

Deployment of their strategic competitive advantages of their earth science & engineering capacities and capabilities.

• While shutting in a property, producers will work to innovatively restore the properties profitability.

Performance & Profitability.

• Making independent business decisions based on actual, factual, standard and objective accounting which determines a Joint Operating Committees profitability. Does not constitute collusion, despite what officers and directors suggest.
• North American producers benefit when they produce all their properties with marginal prices.
• Prices will reflect the replacement value of production. Price makers only initiate new production when profitable.
• Markets provide one thing: the price, which incorporates all information buyers and sellers need to make effective decisions.
• Producers with profitable operations will have their capital repeatedly returned when recognizing depletion in the price of the commodity. Investors in effect were subsidizing the consumer's energy consumption by paying the capital costs of the commodity.

Overhead burden is reduced, shared and made variable, based on profitable production.

• Our Cloud Administration & Accounting for Oil & gas Software & Service will be a shared resource for all producers administrative and accounting needs. 
• Reduces the need for each producer to build redundant, unshared and unshareable administrative and accounting capabilities. 
• With the Preliminary Specification, shutting in production results in a null operation. All producer costs, including overheads, become variable based on profitability.
• Producers recoup overhead costs as cash in the subsequent month when they include these costs in the commodity sales price. In today's producer business model overhead is capitalized and cash is recovered over a twenty year period.
• Creating the dependence on outside sources of capital.

Future capital needs will exceed any expectation that the past “investor-funded model” could finance. The Preliminary Specification provides the financial resources to support dynamic, innovative, accountable and profitable oil & gas producers. 

It’s crucial for producers to broaden their competitive scope in capital markets, leveraging innovative strategies outlined in the Preliminary Specification. Investors have alternatives in other industries, and oil & gas must offer competitive returns. 

• Competing in capital markets will foster the production discipline necessary across the industry.
• Producers who continue to neglect profitable production, dilute earnings with incurred losses. Continuing to fail to compete in the broader capital market and against peers.
• Why continue to lose money when significant capital demands are on the horizon.
• Profitability drives value creation, supplying the financial resources necessary for the producers. 
• But also generating value in the secondary and tertiary industries that support oil & gas.
• Businesses and industries operate on profitable business models. 
• Oil & gas producers have relied on investors to generate the cash they needed.
• Investors were deceived by the specious financial reporting that were conducted for several decades throughout the industry. 
• That’s over, they need to admit that and realize that profitable operations will provide them with all the money they need.
• However, today we can state unequivocally that the culture doesn’t know how, where or what that would involve for their organization to begin to earn profits. 
• Operations of the industry on this basis, for four decades, has diminished the assets performance criteria to well below standard.

People, Ideas & Objects, our user community and their service providers enable producers to restore oil & gas market prices and capture replacement costs as cash for reinvestment, dividends, and debt reduction—consistently and repeatedly. Only then can they tackle the next 25 years, a period that will be the most challenging in the industry's history. Instituting a new culture based on the seven Organizational Constructs of the Preliminary Specification. 

Producers firms' officers and directors have not engaged in any material or exceptional activity in retirements or resignations. It’s important to note that People, Ideas & Objects received no contact from the producers about our product since raising the LNG issue in November 2023. Clearly, they feel in control and will continue with their regular operations, despite facing a serious existential crisis with no support for their capital structure. Operational field capacities are at best one third of prior years and diminishing. From the eia.gov

They see consolidation as the solution to their unidentified and unexpressed issue. They have a culture that does not generate value, no plans or vision, or understanding of how to generate profit. They only mock those such as People, Ideas & Objects and now Reuters for raising trillion-dollar issues. And when issues materialize, officers and directors will “muddle through.” What will “muddle through” do with the higher cash flows necessary to meet the future capital needs? Will they begin using them prudently or revert to their cultural propensities?

Eighteen months ago, producers renounced shale's commercial viability for their clean energy adventures, only to be corrected. And in late 2023, finding that $4.0 trillion in natural gas revenues passed through their fingers. That non-participants of the oil & gas industry in fact have realized their revenues. Revenues that were available to them since August 2012 through the publication and development of People, Ideas & Objects Preliminary Specification. A decade lost! What will they say in their defence?

Or perhaps officers and directors realized they can’t leave now. If they do, their officers and directors insurance will be null and void as a result of not doing anything. The threat existed and now it’s real, and without the Preliminary Specification it will be lost on a prospective basis. The warning was being made on this blog and our Preliminary Research Report since May 2004. They can not say they were unaware. If they did, their officers and directors insurance wouldn’t cover them. Their fiduciary duty assumes they knew of the risk. And would therefore be subject to having their personal assets used to compensate investors.

People, Ideas & Objects rewrote the Preliminary Specification in 2023. I adhere to the U.S. dollar budget requirements detailed in the Profitable Production Rights model. If industry wishes to engage, People, Ideas & Objects is keeping the following option open until February 16, 2024. 

• Industry will need to send a non refundable option of $30 million U.S. to extend the offer until April 12, 2025. In time for the Annual Report season.
• Then pay the development funds by April 12, 2025. These funds support the development of the Preliminary Specification.
• If they miss either of these deadlines, they’ll face consequences by holding themselves personally accountable for the destruction we warned about, has manifested and they’ve disregarded for nearly two decades. 
• Accountability demands they do something to correct this. 
• None of that means anything to them. However, if they don’t they’ll only make their personal situation more complicated. It's the officers and directors' decision. 
• If they miss the February 16, 2024 deadline, we will reinstate the full Profitable Production Rights funding method. 
• Officers and directors will then need to explain to their shareholders the loss of an extra 5% or more in future revenues through that method of software development financing.
• Consistent with the Preliminary Specifications value proposition. Reuters stated that $2.6 trillion in incremental revenue is on the table in the next few years. This demands action from those who have the responsibility, accountability and resources necessary to deal with it. 

People, Ideas & Objects deadlines are structured to deal with the sense of urgency necessary for industry to resolve its issues and realize its opportunities. Time is of the essence. Our value proposition of $25.7 to $45.7 trillion dollars over the next 25 years is now recognized elsewhere, is valid and available through development and implementation of the Preliminary Specification. The argument we’ve put across in support of our business model has been met with consistent lies, blaming and what we call viable scapegoats from the officers and directors of the producer firms. They thought we were seeking attention by putting out ridiculous numbers to gain attention to what we were doing. On the contrary we were doing our job and had a clear handle on the scope and scale of what was not being managed appropriately. Today the oil & gas and service industry are in shambles. An active rebuilding is necessary on an all hands basis. Any rebuild, particularly one in the 21st century, needs to be organized first and foremost. And doing so outside of an ERP system would fail. This development needs to be outside the control of the current officers and directors for two reasons. 

• To avoid their cultural influences and establish the seven Organizational Constructs of the Preliminary Specification as the replacement culture. 
• It appears since the LNG contracts and the opportunity to remedy the prices in the past decade were missed. Officers and directors did not know or understand the issue.
• If they don’t understand the issue, how will they solve it?
• If they have to avoid the Intellectual Property of People, Ideas & Objects what will they use?
• Who will conduct the research over the next decade to build that business model?

I’ve been seeking to resolve this since the July 1986 oil price collapse. Organizing my first approach in May 1991. Undertaking the necessary and difficult decade of research to resolve the issues and exploit the opportunities in oil & gas. A task that has not been undertaken by producers or any of People, Ideas & Objects competitors. 

Please contact, and join me in making North American oil & gas producers dynamic, innovative, accountable and profitable. Only through profitability can the industry continue and obtain the preservation, performance and profitability we need from these two critical products. Everyone in oil & gas clearly understands why profits are necessary and what happens when they’re not earned. Oil & gas has its most challenging and demanding future ahead of it. It will demand the best of everyone and no one can be left out of this rebuilding process. If someone is looking for urgent, challenging and important work they’ll need to look no further than here.

OCI Profitable Production Rights, Part IV

 Issues Involved in Profitable Production Rights Licenses (Continued).

Value Proposition

Our extensive value proposition is based on this premise. This is the value leveraged by both classes of Profitable Production Rights Licenses. As a result of their dependence on and destruction of outside capital and what value was built over the past four decades, the producer companies were never profitable or commercial in nature. We have established the well-known principle that over-reported assets result in over-reported profitability, culminating in overinvestment, which results in overproduction. Price maker principles apply to oil & gas commodities. Doing so for decades is devastating to the prosperity of all parties involved in the oil & gas industry. 

Considering these facts, it is evident that an insidious cancer eats away at an industry's performance criteria over time. Profitability and financial performance are automatically assumed and never questioned. In fact, they are too easy to attain. Over decades, the organization's performance deteriorates to the point where it becomes wholly dependent on outside capital for its basic operations. Oil & gas culture is one of persistence that refuses to change and is unalterable. A chronic lack of performance has rendered the industry worthless as its present value is negative and it requires capital in some form to function. This is attributed to its dominant, permanent, and unchanging culture.

It is, unfortunately, terminal. A market economy cannot function with a useless culture, and the culture should be destroyed to elevate performance as the criterion for success. There is not enough energy in the world to combat this bureaucratic culture and overcome it. Fortunately for People, Ideas & Objects, the oil and gas industry's culture is self-selecting and we are prepared to rebuild it with the performance-based culture of the Preliminary Specification. To ensure that producers are provided with the most profitable means of oil & gas operations, everywhere and always. 

Producers' "muddle through" culture and lack of performance are based on this assumption. Its fundamental belief is that commodity markets will handle any production producers place on the market. As a result, it is imperative that all producers produce at 100% of their production profile at all times. The Preliminary Specifications decentralized production models, price maker strategy is criticized as a collusion strategy. Price makers shut down unprofitable production until it can be produced profitably. Cloud Administration & Accounting for Oil & Gas views oil & gas commodities as price makers. To increase supply, only profitable production is brought on board.

Directors and officers assume that the market is magical and will handle whatever they produce. In these circumstances, oil & gas prices will decline precipitously as price makers. We have witnessed several oil & natural gas price collapses since 1986. A negative oil price of $40 in April 2020 is an example of one of the steepest declines. Markets are not magical. There is only one thing they do. Price serves as a means of information. Producing the product would be worthwhile if the market price was sufficient to make a profit. In any other case, you actively destroy value. Officers and directors of oil and gas producers fail to understand that they are market participants. In their view, the market is magical, and they do nothing to address current market conditions. Regardless of the circumstances, they will muddle through, accept the loss, and continue to produce at 100%.

Profitable Production Rights Licenses leverage the differential between these two industry visions to deliver their value proposition. Over the next 25 years, we have consistently stated their value at $25 - $45 trillion. It generates incremental profitability of $5 trillion. Furthermore, producers claim that $20 to $40 trillion in capital is required to rebuild, refurbish, reclaim, and expand the industry's productive capacity and infrastructure. In the Preliminary Specification, this amount is not necessary, since capital costs are recognized competitively with all other industries in North America. Internally generated cash is reinvested to be recovered repeatedly. As a result, it will be invested again and again competitively with what other industries in North America achieve. The costs of a capital-intensive industry such as oil & gas are primarily capital-related and therefore are the predominant cost passed on to consumers. In contrast to officers and directors strutting down main street comparing their well-built balance sheets and "putting more cash in the ground," the Preliminary Specification puts cash to work, quickly and repeatedly.

Disintermediation by any other name… 

Cloud Administration & Accounting for Oil & Gas offers many benefits. The fact that the industry's officers and directors chose instead to destroy the industry when they had this value available is not surprising to me after 18 years of writing this blog. In a number of industries, the value generated by disintermediating the bureaucratic death grip has been well documented. 

The theory of specialization and the division of labor increases industry throughput using the same resource base. In Adam Smith's research at a pin factory in the late 1700s, production increased over 240 times (24,000%). As a result of division of labor, specialization, and mechanical assistance, these benefits were achieved. All the value generated in our economy today is attributed to specialization and division of labor. There is no doubt that ERP software has locked organizations into unchanging environments where the status quo becomes satisfied with the status quo and only the status quo is satisfied. People, Ideas & Objects propose the establishment of permanent software development capacities and capabilities to eliminate what we consider a modern-day software bug.

New Growth Theory

Professor Paul Romer's theory of non-rival goods supports and enhances the specialization and division of labor. It is People, Ideas & Objects' goal to eliminate the unnecessary and redundant practice of each producer developing their own administrative and accounting capabilities. Using Cloud Administration & Accounting for Oil & Gas instead to establish shared, variable cost, industry-based administrative and accounting capacity. From Professor Paul Romer

Because the economics of ideas are so different from the economics of markets. We’re going to have to develop a richer understanding of non-market institutions, science like institutions, this is going to be a new endeavor for economics.

Budget

There are few individuals who would argue that People, Ideas & Objects' direct costs would fall within the $5.79 billion U.S. It is particularly troubling for the status quo to accept equal amounts for Intellectual Property royalties, equal earnings, and a similar valuation for Flexible Profitable Production Rights. Based on the value proposition identified in the Preliminary Specification. The costs associated with this initiative are incidental to the value generated. In our Organizational Constructs section, we provide further detail regarding the justification of the People, Ideas & Objects budget. It is of course our pleasure to compare the prospective value generated from the Preliminary Specification with the plans and specifications of the officers and directors. There have been no calls for this and we cannot determine if they have a plan.

Promotion of Profitable Production Rights

People, Ideas & Objects has reintroduced Profitable Production Rights. This is to raise funds to develop the Preliminary Specification and establish our user community. In the coming months, I plan to periodically return to this topic and include relevant attributes as they arise. As a result, I will be able to develop a more comprehensive conceptual model. 

Our oil & gas industry has lost its capacities and capabilities to the point that it is no longer functionally capable of maintaining its production profile. As a result of our reliance on shale-based deliveries, we have never seen or experienced the full scope and scale of a potential industry-wide decline curve. First and foremost, we will need an all-hands-on-deck approach to resolving the loss of capacities and capabilities. Complacency has superseded and circumvented any and all industry motivation for taking action. The severity of a problem that needs immediate attention and concern is increased as a result. While I find this issue challenging, exposure levels to shale based production volumes create a much larger issue. Shale exhibits steep decline curves. This is the first time we have been here and we have never been so exposed. 

The people responsible for this situation are the ones who have the authority, responsibility, and resources to deal with it specifically. In most cases, they prefer to "muddle through." This has been made possible by capital intensive industry cash flows to offset the hefty executive compensation they receive. All they do is pretend not to notice the problem.

Conclusion

Status quo producers have lost sight of their purpose. They have failed, will not succeed, and have proven culturally incapable of earning "real" profitability. They have no desire to change or succeed. As time passes, the difficulties in the industry will become more apparent. The choice of alternative organizational opportunities for the greater oil & gas economy is limited to one choice offered by Oracle, People, Ideas & Objects, our user community and their service provider organizations in the form of our Cloud Administration & Accounting for Oil & Gas application. The time to consider these issues has passed. As part of the Intellectual Property available to develop any alternatives, it will be necessary to consider what solutions have already been developed and avoid what exists in our Preliminary Specification. 

In light of the level of damage and destruction caused by producer officers and directors throughout the greater oil & gas economy. People, Ideas & Objects provide extensive value propositions developed new business models that bring new value as a result of disintermediation. The cultural methods we implement in the Preliminary Specification to achieve these advantages are described in our seven Organizational Constructs. We are building the future oil & gas industry on these cultural foundations.

As a result of our budget, the producers' officers and directors have maintained their distance from this project. Because of the scope and scale of these issues and this project, these costs must be recognized. Our next phase of development will not be built on one individual's success. As a result, it will be based on a comprehensive sense of urgency necessary to address these issues in the industry. In addition, the revenue potential and characteristics of Profitable Production Rights should reflect a negotiated share of the BOE's value proposition. And determined by the rights owner.

The purchase price of these rights is $600 U.S. per North American BOE. In addition, the potential revenues and characteristics of that right reflect a negotiable share of the Profitable Production Rights with those who own the oil & gas production. The proceeds are used to build the Preliminary Specification. Fulfilling the need for People, Ideas & Objects revenues from oil & gas production, albeit indirectly in this case. By operating Cloud Administration & Accounting for Oil & Gas software and services, the Profitable Production Right will reflect the intrinsic value of oil & gas production's ability to organize profitably. It is a perpetual right and exists beyond today's oil & gas producers. Although our costs are large they pale in comparison to the significance of the damage done by these officers and directors. This damage is accelerating, has not been identified or approached and continues. Therefore anyone and everyone can share in the effort, the success and the reward of resolving this industry catastrophe to prevent what could become a societal catastrophe.

The Battle

What we know is that billions of barrels of oil and trillions of cubic feet of gas have passed through the North American industry over the past four decades and more. We’re told that it is represented on the balance sheets and was put in the ground by the producers' officers and directors. For what purpose has not been explained and maybe there was a productive reason that is beyond our current comprehension. We should keep an open mind to these things. The fact is no one claims to have prospered from oil & gas. It stands at a point that puts society in serious jeopardy. 

Leadership has been well compensated during this era. They appear blinded by this and cannot see objectively past their “muddle through” strategy. Their recent saunter off the stage towards clean energy, with oil & gas revenues in tow, may now be realized to be a step too far. As a result, they are claiming to be born again shale producers. The point proves one thing: the money in the form of those oil & gas revenues is on the table and will be directed by whichever system is in place.

Profitable Production Rights are the means by which the industry can transition to a performance culture. Driven by the most profitable means of oil & gas operations, everywhere and always. It is where the seven Organizational Constructs define an organizational culture that is comprehensive, intuitive, appropriate, and understandable. An environment in which those who are concerned about today's situation and looking to actively participate and prosper. Creating dynamic, innovative, accountable, and profitable oil and gas producers, industries, and sub-industries.

OCI Profitable Production Rights, Part III

 Issues Involved in Profitable Production Rights Licenses

An Inconsistent Software Architecture to What’s Approved

People, Ideas & Objects are licensed as commercial rights holders to my Intellectual Property. It is the issue of Intellectual Property that is highest on the agenda for the status quo producer’s officers and directors. They’ve never accepted or recognized IP before. They are hesitant to set a precedent that contradicts their operational method. Intellectual Property is the means by which the software reflected in Cloud Administration & Accounting for Oil & Gas will be secured in terms of its value proposition and therefore its inherent asset value. And therefore how our value proposition is generated. As a result, we can generate development and maintenance revenue through the creation of these Profitable Production Rights License products. It will hold their inherent value. 

This software infrastructure falls under the category of a primary concern for the Profitable Production Rights Licensee in terms of securing leverage for their value proposition. This is wholly derivative of People, Ideas & Objects and its licensed Intellectual Property. The Preliminary Specifications seven Organizational Constructs include Intellectual Property as one of the seven constructs. Please review that section to understand the importance of IP in this community and the larger oil & gas industry.

What the status quo officers and directors of the producers are willing to accept and what is generally understood in the greater commercial marketplace in terms of software architecture is the following. That commercial software applications such as the Preliminary Specification as configured today. Should be provided to the marketplace through published Application Programming Interfaces or API’s. Open source software is preferred for its large community and free cost. Then the general software development environment would have the opportunity to augment the software accessible through these API’s in "creative and innovative" ways. Which sounds like an improved method of delivering software. And in an altruistic world that may be the case. What we need to do is understand the purpose behind the status quo’s desire and motivation to pursue this architecture. And compare that to what People, Ideas & Objects are doing with our private API’s of proprietary software accessible only within our licensed domain. 

By publishing an API for use as the status quo desires, People, Ideas & Objects would violate the terms and conditions of all of our user community provisions. In summary our license grants them the rights to uphold, secure and prepare derivative works. By publishing an API, as officers and directors expect, we would allow producer firms to access software code without paying for it. To be more specific, they’ll never pay for the underlying Intellectual Property and render our value proposition moot. This is due to the fact that on May 6, 2021, the United States Supreme Court issued judgment for Google against Oracle in their litigation regarding Google’s unauthorized use of the Java Programming Language. Citing that the use of a published API was “fair use” and not a violation of Oracle’s copyright. 

Producers would however gladly pay for any and all of the “blind sleepwalking agents of whomever will feed them” to conduct software development for them. We therefore can clearly see the motivation and argument of both sides of this fine point of the law. The status quo and People, Ideas & Objects are seeking to commercially secure what is rightfully People, Ideas & Objects' value represented in the Intellectual Property developed in the Preliminary Specification and elsewhere. People, Ideas & Objects use that value to orchestrate productive change in the industry and disintermediate the status quo. The status quo wants to stop that process and manage software development to maintain their franchise for another generation. They will compensate those involved for their time incurred, however that is keeping a critical aspect of the industries future in the hands of “blind sleepwalking agents of whomever will feed them” doing only what is instructed of them by the producers' officers and directors. We’ve chosen a different direction for the oil & gas industry's health and prosperity. 

What potential Profitable Production Rights Licensees may take from this is that the makeup of my holdings is evenly distributed between Intellectual Property royalties, People, Ideas & Objects earnings and the fees charged to producers through the Flexible Profitable Production Rights Licenses that I hold. I’m all in to ensure I benefit from a profitable and prosperous North American oil & gas industry as a result. 

Vaporware

Yes definitely, and we're proud of it. We’ve not committed to anything set in stone that needs amending through costly software redevelopments. We’ve maintained flexibility and financial independence that allows us to focus on the issues. People, Ideas & Objects are the financially unsupported, ostracized and vilified oil & gas ERP provider. We have taken all the flak the status quo officers and directors could muster. We’re still standing and can claim to be the only solution for industries' existential and organizational issues. 

We are vaporware in its purest form. Outside of the Preliminary Specification there is little other than our efforts and results in developing our user community. A process we began in 2014 and requires significant time to organize. Potential user community members have had the 2012 publication of the Preliminary Specification to review and understand the larger vision of how oil & gas will operate. And to spend time in their chosen area of expertise to enhance and expand on these concepts. In addition, they should determine what they can do to enhance the industry. During the first quarter of 2014, with the publication of our user community vision, potential members saw how they could affect oil & gas changes. Having the tools of an exclusive license to:

• Prepare derivative works of the Intellectual Property.
• People, Ideas & Objects software developers can only look to our user community members for input.
• Discretionary budgetary control.

We keep the results of our user community confidential and away from the destructive and envious officers and directors of the producer firms. This is to ensure our members remain safe in their current prosperous oil & gas positions. Working quietly and insidiously on both the future and the past, consciously and unconsciously.

Scope and Scale

The ominous nature of the Preliminary Specification has not been attempted in an ERP environment before. This is not a result of our ambition but the scale of the issue and the obstinate resolve over several decades by the producers’ officers and directors. Oil & gas is a critical part of our advanced standard of living. Has that been endangered? It’s difficult to say at this point, however the prospect of what producer officers and directors will be able to resolve dynamically, innovatively, in an accountable manner and profitably is not likely based on the culture of "muddle through." 

It is interesting to see that Oracle is undertaking a similar scope and scale in the U.S. healthcare system. Moving their proposed system from the existing facility-based focus to one where the patient is the primary focus. It is far more comprehensive in scope and scale than what we are attempting, in my opinion. And the current U.S. healthcare systems are isolated systems operating at each facility. Patients cannot aggregate their medical history from independent healthcare providers.

Are People, Ideas & Objects and Oracle’s Healthcare initiatives just a fad in terms of what ERP systems may experiment with? Or are they the necessary response to the demand for systems and organizations to move to a higher level of capacity, capability and organizational performance? Is this necessary for society to move forward? The success or failure of these initiatives will answer these questions. The lack of alternatives to the Preliminary Specification, the lack of time, and the sense of urgency dictate that People, Ideas, & Objects, etc., must succeed. And this will only be resolved when we all focus on rebuilding the industry on that basis. Where everyone involved in the industry has a part in making that success possible.

Assuming Oil & Gas Disintermediation is Necessary

Disintermediation is necessary in every industry. The ability of the structured hierarchy to survive and prosper in the future is beyond question as it is now functionally unable to perform efficiently or commercially at the level that society demands. Various forms of organization centered around the Internet offer innovative means to apply principles of value generation that the status quo cannot compete with. 

We can argue these points about whether the oil & gas industry needs disintermediation. People, Ideas & Objects assume that the current structure has failed comprehensively. This is not widely evident or shared, however concern is building that business issues are summarily ignored or “muddled through.” 

Another constant in the disintermediation process is the battle between those who seek to protect their status quo turf and those who seek to change. In North America, oil & gas producers' resistance is persistent to the point that their poor performance damages all aspects of the industry and associated sub-industries. 

Taking the optimistic side of the argument. People, Ideas & Objects consider this an opportunity not only from the industry disintermediation perspective. The extent and comprehensive nature of the damage and destruction demands that significant remedial actions be taken to restore the service industries' capacities and capabilities. And rebuild producers' internal capacities and capabilities regarding exploration and production activities. To restore the trust, faith and integrity in producers that will attract the investment community back to the industry. To ensure the industry and producers are provided with the most profitable means of oil & gas operations everywhere and always. In addition, the consumer is offered an affordable, abundant and reliable energy source. Therefore why would you rebuild the industry in the current failed method and not use the tools and methods available today that are proven to be successful in other industries?

OCI Profitable Production Rights, Part II

 What do Flexible and Profitable Production Rights Licenses earn?

What revenues are generated through a Profitable Production Right License? This would be determined based on the negotiated share of the present value of the differential comparing People, Ideas & Objects et al’s value proposition to the status quo. What that would be and how that would be determined would be a result of these negotiations between the Profitable Production Right Licensee and the producer firm. These contracts would then be managed on the licensee's behalf in the Oracle Blockchain database managing each specific BOE. 

Let's assume that the Profitable Production Right Licensees implemented a percentage of the oil & gas commodity price in their contracts. And for the purposes of this discussion, we will assume a range of rates between 2.5% and 5% of the commodity price. A range that consists of one quarter to one half of the “real” profitability of a commercial operation. An amount where the use of the Preliminary Specification ensures commodity prices are at least marginal, and therefore higher to ensure a profitable operation. A differential that has been of no interest to current producers who have left far more than that on the table for many decades. An amount that future producers would consider a cost of business in determining their profitability. That contract would earn if commodity prices were capable of providing the producer with a 10% profit from these prices. At a $100 price of oil, revenues of up to $5.00 per day or $1,825.00 per year. Assuming that the Preliminary Specifications decentralized production models price maker strategy rehabilitated natural gas prices back to their traditional heating value basis of trading. Natural gas would be at a commodity price of $16.66 and generate similar revenues to oil. The key to this argument is that these will be the costs that producers will incur to maintain their access to our Cloud Administration & Accounting for Oil & Gas software and services that provide them with the most profitable means of oil & gas operations everywhere and always.

The anticipated, expected or budget price of a Profitable Production Right License is $600 U.S. per boe. This is based on the current North American production profile which includes heavy oil production and People, Ideas & Objects budget. As we’ve discussed, heavy oil producers have their own ERP systems and may not be interested in the Preliminary Specification. However they are direct, net benefactors of the price maker strategy and therefore their production is assessed on the same basis as all other North American production. They are incapable of shutting down their production process, whose costs are consistently high and therefore will need to acquire Profitable Production Rights Licenses.

The cost of maintaining software development and our user community long term would need to be factored in when the Preliminary Specification becomes operational. This would not be material in my opinion. If we consider the $23.2 billion development costs of the Preliminary Specification in comparison to the gross revenues of the producers in 2021, our total software development and our user community costs averaged over three years would total 2.0% of a single year's oil & gas revenues. And post commercial release operational and incremental software development and our user community costs will be smaller. It is reasonable to estimate that 25% of the build costs or $1.9 billion per year will be spent. 

Assigning these overhead costs to Profitable Production Rights License owners would be an all-in cost of $32 / year / license. For clarity I’ll state that service providers' revenues are generated through their direct billings to the various Joint Operating Committees. These costs make up the Joint Operating Committee and producers' variable overhead costs and are not part of the Profitable Production Rights Licenses. The Profitable Production Rights Licenses will have no impact on the service provider's fee structure or billing. They will indirectly impact the producer's ability to access service providers through access rights to the software.

The basis of the long term support costs associated with owning a Profitable Production Right License is the support of software development and our user community. These are permanent industry-based capacities and capabilities. There will be times when the Profitable Production Rights Licensees contracted production may have been shut-in, suspended or abandoned. [Note: that does not mean there would be no overhead costs charged to the Profitable Production Rights Licensees for software development and our user community costs during these times. These overhead costs are fixed.] The important aspect of the Profitable Production Right License is that it is a contract with a producer to provide them with access to organizational capability to earn profitable production. It is the right to produce a barrel of oil equivalent and process it through Cloud Administration & Accounting for Oil & Gas software and service. And is therefore reconfigurable in terms of the production it represents. Profitable Production Rights Licensees won’t have the risks associated with oil & gas property ownership. Each Profitable Production Right License will have the exclusive right to process a barrel of oil equivalent profitably through our Cloud Administration & Accounting for Oil & Gas software and service. Granting the producer firm the opportunity to profit on a single barrel of oil equivalent. That Profitable Production Right License is transferable at the Licensee's discretion. The ownership that you gain by purchasing the Profitable Production Right is assignable, licenseable, leasable and transferable. Additionally there is no implied role for a Profitable Production Right License holder to be involved whatsoever in the day to day activities of the producer or Joint Operating Committee. The product is a license to Cloud Administration & Accounting for Oil & Gas. The producers alternative would be to continue using their current approach which tears the industry apart. 

Today’s producers' tactical management approach includes everything that comes into their minds. In the past few years we’ve seen $25 million in executive bonuses paid by Chesapeake the week prior to its bankruptcy declaration. It appears that bankruptcy is the means to deal with shareholders who have become too dissatisfied with management performance and is how producers can reshuffle the deck as it were. Profitable Production Rights Licenses circumvent these actions by having a clause that terminates the Profitable Production Rights License upon bankruptcy. Therefore freeing up the rights and maintaining value in the hands of the rights owner. Endorsing the purpose of Profitable Production Rights by separating ownership of oil & gas production from the right to process that production. This is done through organizations represented by Cloud Administration & Accounting for Oil & Gas. The Licensees could then engage bankruptcy trustees to reinstate the Profitable Production Rights License. This would be on terms that maintain independent ownership of the Profitable Production Rights License separate and distinct from the means of production.

Why and who would be interested in purchasing these Profitable Production Rights Licenses?

One of the purposes of developing People, Ideas & Objects Preliminary Specification and Cloud Administration & Accounting for Oil & Gas software and services is to generate the necessary producer profitability to deal with capital demands over the next 25 years. There is no other financing source large enough to support these needs. As producers, officers, and directors, past methods have failed catastrophically. Investors have stated unequivocally that they’ve had enough of these past methods and refuse to participate further. Continued obstinance by producers' officers and directors appears to be counterproductive with the pace and trajectory of industry decline accelerating. Oil & gas in North America has no future in its current configuration. Change is necessary to deal with marketplace issues and opportunities. Opportunities such as disintermediation through Information Technology and the other Organizational Constructs of our Preliminary Specification. Enhancing the industry culture through wholesale change. To ensure that producers achieve the most profitable means of oil & gas operations, everywhere and always.

The following are a number of different classifications of people that we believe would be interested in purchasing a Profitable Production Rights License. To provide software development revenues to People, Ideas & Objects and initiate the rebuilding process that oil & gas and all subsidiary industries need to undertake. 

Current, past and prospective oil & gas investors

Investors want profits and have not been rewarded for their efforts since 1986. They have experienced the same obstinate, protracted battle with producer officers and directors that People, Ideas & Objects have experienced. Their participation in the Profitable Production Rights License would provide People, Ideas & Objects with revenues to change their current and prospective shareholdings into dynamic, innovative, accountable and profitable oil & gas producers.

Our plan for the next few months involves investors purchasing Profitable Production Rights Licenses to ensure their representative production is handled. To secure their ability to process representative production through Cloud Administration & Accounting for Oil & Gas software and services. 

Current oil & gas employees

Everyone recognizes the personal risks of disintermediating an industry. It brings out the possibility that they're attacked and subjected to severe, unnecessary career consequences. The number of people who are of like mind to People, Ideas & Objects is significant in volume. I have sought to keep their information confidential for their safety and financial benefit. Our user community members are part-time positions. Their commitment will be required when service provider organizations are formed, well into software development. There is a desire throughout the industry to do something to deal with its issues and soon. 

Would the overall population of oil & gas employees and vendors participate in the Profitable Production Rights License? Ownership of a product such as these licenses provides an opportunity for people to participate in the industry. Having indirect value generated from oil & gas production is a risky proposition. With the transferability of the licenses to new properties and the Flexible Profitable Production License these risks are reduced. The leverage realized by these products is enhanced through the value proposition made available by the disintermediation of oil & gas.

Current Service Industry representatives

Who have a vested interest in rebuilding the service industry to rebuild their trust in the producer firms. Profitable Production Rights Licenses would motivate them to earn value in their chosen industry. Eliminating the oil & gas boom / bust cycle and its consequences, which are leveraged by producers to be experienced exclusively by service industry representatives. 

Motivation has been the primary issue in the service industry for the past few years. Faith and trust towards the producer firms will need to be rebuilt by the producers if they expect to continue with their production profiles. In a “you broke it, you fix it" mentality. Producers will need to recapitalize the service industry through active philanthropic rebuilding of its capacities and capabilities. Providing evidence that there will be second, third and more paychecks when producers destroy their businesses again. Something that field staff will know they can reliably base a career, family and mortgage upon, in what is currently the 21st century. Producer officers and directors should take these comments as an independent assessment of their past management.

Our user community and their service provider organizations. 

Their participation in these software developments proves their motivation for profitability everywhere and always. A Profitable Production Rights License would provide them with an incremental value-add from what they seek to produce for the industry. Securing additional motivation to provide the most profitable means of oil & gas operations, everywhere and always.  

Our user community and service provider organizations are derived from the general oil & gas community. Having direct participation in the production process is attractive to these people.

North American producers.

They’ll need to secure their production rights through direct purchase of a Profitable Production Rights License or engage a licensee to lease the incremental barrels they need to process their production volumes when the Cloud Administration & Accounting for Oil & Gas facility is operational. People, Ideas & Objects are satisfied that we are generating our revenues from direct oil & gas production, albeit indirectly.

“Muddle through” has consistency over time and throughout the producer population. We argue it has become the culture of the industry. In this transition to a performance-based culture this may be the start of a producer's competitive juices flowing. 

Oil & gas producers worldwide.

A way to profit from North American production without operational, financial or political risk. It can be done directly through the ownership of the Profitable Production Right as well as indirectly through the most profitable ways to operate oil & gas operations based upon consistent, marginal, global commodity prices.

The associated risks and issues of software and services development are addressed within a reasonable timeframe and budget. They assume the appeal of the Profitable Production Rights Licenses as explained at this point. All inherent risks associated with this product are mitigated or overcome. This implies a collective and collaborative effort by the industry to succeed. The scale of the issue demands such. Despite the fact that we are not there yet, I believe we are close to the point where everyone understands that collective and collaborative actions are necessary.

OCI Profitable Production Rights, Part I

 Introduction

People, Ideas & Objects are reinstating a modified Profitable Production Rights Licensing method of generating the necessary revenue for the development of the Preliminary Specification and our user community. Providing Profitable Production Rights Licensees with the unique opportunity to participate simultaneously in both the North American oil & gas industry and its ERP software markets. All businesses in the 21st century will soon be software businesses.

I’ve made a number of changes to the Profitable Production Rights License and better defined the opportunities for all concerned. It is a means in which the development of the Preliminary Specification can be undertaken and for licensees to hold the rights to control who will have access to People, Ideas & Objects software and our user communities service provider services in the form of our Cloud Administration & Accounting for Oil & Gas. I’ll restate here why participation in People, Ideas & Objects et al is valuable in the 21st century. It’s no longer enough to just own the oil & gas asset, it’s also necessary to have access to the ERP software and services of People, Ideas & Objects et al’s Cloud Administration & Accounting for Oil & Gas that makes all oil & gas assets profitable. 

Oil & gas producer officers and directors have proven they don’t care about oil & gas in their transition to clean energy. They have also declared that shale will never be commercialized. A capitulation of the oil & gas business others such as their investors and the service industry actively participated in and built. Oil & gas producer officers and directors have demonstrated they don't understand, need or know how to earn "real" profitability for over four decades. The oil & gas industry has a legacy and culture that cannot change and that is counterproductive to profitability and productivity. The first step to changing a culture is accepting the issue. Through their proven specious accounting methods and reporting, ad hoc ERP systems, and dysfunctional organizations, oil & gas producers officers and directors do not care about transparency. 

At this point in time what more needs to be proven that the North American producer is a failed organization? How many more chances will they get? Societal jeopardy is now in play with what I perceive is the industry's inability, over the next decade, to maintain shale deliverable volumes over the mid to long term. For example U.S. natural gas production from shale is almost 80% of total production. With 10,000 to 25,000 man hours of mechanical labor contained within each barrel of oil equivalent, producers' officers and directors' self-interest overrides all other concerns. With all that has happened between producers and investors since 2015, investors' expectations are clearly defined. How producers explain their unwillingness to invest in profitability and accountability is a mystery to me. 

I came across this statement regarding the Fifth Estate.

The Fifth Estate is a fundamentally different kind of power. It’s more difficult to consolidate than media, and more difficult to control than even our government divided by design. Its impact is also far more difficult to predict. This is because technology is above all things defined in terms of newness, which not only makes it disruptive of pre-existing power, but destructive of itself -- a sort of anti-power that only guarantees change. The true failsafe. Our ultimate reset. Tremendously empowering of tyranny in times of stagnation, technology is also our most powerful weapon against tyranny in times of innovation.  

- Edmund Burke

We’ve lived through a time when a transition occurred in the business community. Technology has disintermediated the old with innovative, highly productive, and value-generating business models. Over the past two decades the status quo has maintained control while everything in their business became distorted and value effectively destroyed. Since the 2008 financial crisis we’ve witnessed shale technologies become dominant however only minimal to no value has been realized as a result. I see this period as the last of the “tremendously empowering of tyranny in times of stagnation.”

The oil & gas industry is not only faced with its most challenging operational, financial and political future. These three challenges demand that innovation, entrepreneurship and the principles that have brought the North American continent to dominate the global economy be put forward to resolve the industry's difficulties. The status quo is not only incapable, it has chosen not to bother, shrugged its shoulders and moved on. It is therefore a time when “technology is also our most powerful weapon against tyranny in times of innovation.” The choices we make today are how we’ll perform in 2025, 2030, 2040 and 2050. 

People, Ideas & Objects believe the status quo has failed. Since 2015 they have unsupported capital structures. Have failed to remediate any aspect of these issues leading to their difficulties. Have deprecated their internal Work-in-Progress capabilities. Destroyed the service industries capital structures and motivations for employment. Their capacities operate at 25% of prior levels. The second half of 2023 sees all the basins in the United States in decline. And possibly most detrimentally, oil & gas industry leadership does not consider these concerns. Instead, they saunter off the stage into unrelated businesses involved in “clean energy.” Taking the oil & gas revenues, in an unauthorized fashion, which were generated by their investors and are the only source of financial capability available to fund the rebuild of this industry.

Producer officers and directors are organizationally unprepared to approach their most challenging future and have not supported any organizational development method. Leaving People, Ideas & Objects as the only alternative in the marketplace to their failed, archaic method. The only solution researched and reviewed. Based on performance that provides the most profitable means of oil & gas operations, everywhere and always. To build a dynamic, innovative, accountable and profitable oil & gas producer and industry. To ensure North America attains optimal economic prosperity through energy independence from shale commercialization. 

People, Ideas & Objects et al’s Profitable Production Rights Licensees own the keys producers will need to access our Cloud Administration & Accounting for Oil & Gas method of profitable oil & gas organization. Or, producers could choose to remain with the status quo. They could let that expire, and check what is available then.

Profitable Production Rights License

In terms of implementation, what we need is the ability to write each of the Profitable Production Rights Licenses onto a blockchain solely dedicated to securing the Profitable Production Rights License. We are fortunate to be able to do that through Oracle Cloud Infrastructure and Oracle Autonomous Database. This is due to their recent development of the Oracle Blockchain Table as described below. This will be an Oracle database within the Preliminary Specification that manages these Profitable Production Rights Licenses by controlling the rights holders' contract. This will allow the contracted producer access to People, Ideas & Objects software and services. And it will manage licensee revenue and expenses on their behalf. 

Any assignments, sub-leases or transfers of the Profitable Production Rights License do not override or delete the original purchaser's transaction in the database; they will write another block on the chain, or row on the instance of the Oracle Blockchain database. Profitable Production Rights Licenses are aggregated through its serial number. This is done to determine all the associated transactions, assignments, its current ownership, and licensing of its production right to which producing Joint Operating Committee. 

Ownership and control of the encryption key to access the Profitable Production Rights record database will be held by the Profitable Production Rights licensee. This database will store the production contract they execute with the producer. Producers will be billed based on the Profitable Production Rights Licensees contract. Where the licensee holds access rights to what we believe will become the only means to profitably organize North American oil & gas exploration, production, administration and accounting. 

Blockchain tables are append-only tables designed for centralized blockchain applications.

In Oracle Blockchain Table, peers are database users who trust the database to maintain a tamper-resistant ledger. The ledger is implemented as a blockchain table, which is defined and managed by the application. Existing applications can protect against fraud without requiring a new infrastructure or programming model. Although transaction throughput is lower than for a standard table, performance for a blockchain table is better than for a decentralized blockchain.

A blockchain table is append-only because the only permitted DML are INSERT commands. The table disallows UPDATE, DELETE, MERGE, TRUNCATE, and direct-path loads. Database transactions can span blockchain tables and standard tables. For example, a single transaction can insert rows into a standard table and two different blockchain tables.

It should be noted that Oracle Blockchain Database is not a pure blockchain implementation. It does not distribute a blockchain to other servers for validation and verification in the event of a suspicious transaction. It is focused on higher transactional performance than traditional blockchain technology can provide. A necessary requirement for our purposes. It is managed by the Oracle Autonomous Database and will act as a gatekeeper for our Cloud Administration & Accounting for Oil & Gas. In other words the data is immutable which is the feature of all blockchains. We are using it to ensure Profitable Production Rights Licensees have security of their rights. Each North American oil & gas producer will need to secure adequate Profitable Production Rights Licenses so that their organization can access our Cloud Administration & Accounting for Oil & Gas software and service to obtain the most profitable means of oil & gas operations. People, Ideas & Objects believe that once constructed there will be no other competitive options for producers to organize themselves profitably.

Flexible Profitable Production Rights License

Oil & gas production can be unpredictable at times. Fields can and do decline, with shale being particularly variable. There is market demand as we’ve seen with an overall decline of 25% worldwide consumption during COVID. Although it is unlikely to happen again, it forms a baseline. Add to this the variability that the Preliminary Specification introduces with the decentralized production models price maker strategy. Production volume variability may become more significant and difficult to predict. How would this be manageable with the Profitable Production Rights License? This would be unable to earn revenues for at least a month or more, yet cover the associated fixed overhead costs attributable to their license(s). (Predominately Oracle software license costs associated with Cloud Administration & Accounting for Oil & Gas software and services.)

Therefore we are introducing two categories of Profitable Production Rights. We have described one category. The Flexible Profitable Production Rights License will be assigned 25% of the total. These will absorb production variability up to 25% of all production. Each producing property will automatically be assigned 25% of the Flexible Profitable Production Rights License to offset any production decline. Therefore the Flexible Profitable Production Rights License indemnifies Profitable Production Rights License owners in case of variable production volumes up to 25% of a Joint Operating Committee total production volume. 

A Profitable Production Rights Licensee would therefore maintain their revenue streams in cases of production variability up to the extreme volumetric declines we've seen in this past decade. As production is being shut-in due to lack of profitability, this is anticipated to be a small percentage of North America's total output. Therefore if the shut-in production is attributable to lack of profitability and meets the following conditions 

The property is currently being reworked to return to production. The defined purpose of the Preliminary Specification. 

As a result, the Flexible Profitable Production Rights Licensee will assume those volumes as part of their overall 25% allocation. It will absorb the revenue loss from any shut-in production of those properties on behalf of the Profitable Production Rights Licensee assigned to the property. Abandonment or suspension of the properties' production would release all Profitable Production Rights Licensees to seek new production elsewhere. Until production deliverability in North America dropped 25% below the base production volume established for the continent. In this case, there wouldn't be a decline in revenue for Profitable Production Rights Licensees, only for Flexible Profitable Production Rights Licensees. 

The Flexible Profitable Production Rights License is not valued below the Profitable Production Rights License in terms of its purchase price when distributed. This is a result of the Flexible Profitable Production Rights License being fully acquired by me. I am reallocating the margins that are earned through People, Ideas & Objects., to Flexible Profitable Production Rights License consideration of 25.0%, 25% Intellectual Property royalty portion of the Preliminary Specifications budget and 25% for the earnings of People, Ideas & Objects. What I expect as a result of holding all of the Flexible Profitable Production Rights Licenses is to have a strong negotiating position when leasing these to producer firms that need to secure Flexible Profitable Production Rights Licenses for one quarter of all their production. Negotiations for the acquisition of Flexible Profitable Production Rights will commence once Profitable Production Rights are fully subscribed to each Joint Operating Committee.

What do Flexible and Profitable Production Rights Licensees earn?

Flexible and Profitable Production Rights Licensees are the exclusive customers of the People, Ideas & Objects Preliminary Specification and our user community service provider organizations. There will be no ability to access Cloud Administration & Accounting for Oil & Gas software and services that they’re building without the associated Profitable Production Right License in place to do so. Each Profitable Production Right will provide the means to process one barrel of oil equivalent / day profitably through this facility. Please note there will be an unknown period of time during development in which no revenues are earned and no expenses are incurred by either class of Profitable Production Rights Licensees. This would not preclude licensees from engaging producers to ensure production rights are in place. This would be prior to the commercial release of the Cloud Administration & Accounting for Oil & Gas software and service. Profitable Production Rights Licensees revenues are earned by charging producers access fees to efficiently process their BOE on a monthly basis through the Cloud Administration & Accounting for Oil & Gas software and services. How those are structured will be at the discretion of the Production Rights holders.

The methods used by producer officers and directors today have failed, and have destroyed what value existed in the industry prior to their administration and any subsequent investments made. They have not generated any value from the massive call on investors and are incapable of dealing with today’s issues and opportunities. Oil & gas producers have proven to be incapable of managing the business and are failed organizations with unsupported capital structures. Officers and directors today manage a capital intensive industry with reasonable cash flows that provide for only enhanced executive compensation. There has been and will be no change during their tenure. It is within that statement that Profitable Production Rights are valued. What is the difference between a truly profitable oil & gas operation and the one in the industry since the 1986 oil price collapse? Where the North American oil & gas industry would be competitive against all other industries for capital. That is the value Profitable Production Right Licensees offer the producer firm. Profitable Production Right Licensees leverage their revenue stream through the People, Ideas & Objects value proposition. The exclusive right grants the dynamic, innovative, accountable and profitable oil & gas producer the ability to organize, operate and provide for the most profitable means of oil & gas production. The methods and means of operations are described in our Preliminary Specification. They cover the full scope of exploration, production, administration and accounting from start-up to integrated producers.

Reinstating Profitable Production Rights, Part IV

 Promotion of Profitable Production Rights

People, Ideas & Objects have now reintroduced the concept of the Profitable Production Rights method of raising the revenues necessary to develop the Preliminary Specification and establishing and funding our user community. What I expect in the next few months is to occasionally return to this topic and include new attributes as they arise to more fully develop the conceptual model. There will be many Tweets on Twitter @piobiz to further expand what it is that we’re doing and to seek a group of like minded individuals. 

What we do know and what we’re fully aware of is that producer officers and directors have proven once again that they’ll do nothing. We have two choices as a result. We either quickly learn what the producer officers and directors' plans, direction, wisdom and brilliance consists of. Or we make the changes ourselves through the development of these Profitable Production Rights. 

We’ve never experienced an oil & gas industry that has lost its capacities and capabilities to such an extent that it is functionally incapable of maintaining its production profile. And we certainly have never seen or experienced the full scope and scale of a potential industry wide decline curve when we’re so dependent on shale based deliveries. The loss of the capacities and capabilities is the first issue that we’ll need an all hands on deck style of issue resolution. “Muddle through” complacency has superseded and circumvented any and all motivation throughout the industry for the call to action. Aggravating a severe difficulty that needs a sense of urgency and concern on everyone's behalf. As difficult to resolve as I see this issue, I find the exposure levels to shale based production volumes create an exponentially greater aggravating issue. The steep decline curve that is an inherent characteristic of shale. We’ve never been here before and we’ve never been so exposed. 

Those that are responsible for this situation are the ones that choose to do nothing about it. They are the ones who have caused it, have the fiduciary responsibility, authority, accountability and resources to deal with it specifically and prefer to “muddle through.” Supported by the cash flows of a capital intensive industry to compensate for their hefty executive compensation, they fail to see the problem. 

Conclusion

To suggest that the status quo producers have lost the focus of the purpose of what it is they’re doing, I believe, has been made. We can suggest that they’ve failed, will not be successful, have proven they’re culturally incapable of earning real profitability, have no desire to change or to be successful. The level of difficulty being experienced in the industry will become more evident to people as time passes. And what we know is the choice of alternative organizational opportunities for the greater oil & gas economy is limited to include the one choice being offered by Oracle, People, Ideas & Objects, our user community and their service provider organizations in the form of our Cloud Administration & Accounting for Oil & Gas. Any time necessary to consider the issues has passed and the Intellectual Property that is available to develop alternatives will need to consider what has been developed and therefore avoid the Preliminary Specification. 

The value proposition that People, Ideas & Objects provides is extensive due to the level of damage and destruction that has been authored by producer officers and directors throughout the greater oil & gas economy. Disintermediation is also playing a significant role in the development of our new business models that bring about new value. And we have detailed in our seven Organizational Constructs the cultural methods that we are implementing in the application to gain these advantages. These are the cultural basis that we’re rebuilding the new oil & gas industry upon. Why our value proposition is so substantial. What forms the strong negotiating position which is acquired by each of the Profitable Production Rights Licensees. 

Our budget has been one of the issues that have given the producers officers and directors the ability to maintain their distance from this development. The scope and scale of their issues and this project are large and demand these costs be recognized. These costs make up one third of the total of our budget with the other third going to myself for Intellectual Property royalties and another third going to People, Ideas & Objects organizational Profits. I’ve now leveraged my assets in the acquisition of the Flexible Profitable Production Rights Licenses. A realization needs to be made that this next phase of our development will not be built on the success of one individual and the comprehensive sense of urgency necessary to resolve these industry issues. 

To conclude, to have a Profitable Production Right acquired for no more than $390 per North American boe and the potential revenues and characteristics of that Right reflecting a negotiable share of that boe’s value proposition. Provides for direct participation in oil & gas without the inherent risk associated with the financial, operational and political frameworks. Direct participation is also realized in the software business of oil & gas ERP systems. The Profitable Production Right proceeds are incurred in the process of building the Preliminary Specification. Fulfilling the need for People, Ideas & Objects revenues be sourced from oil & gas production, albeit indirectly in this case. Upon operation of the software and services the Profitable Production Right will reflect the intrinsic value of the oil & gas productions ability to organize profitably through the Cloud Administration & Accounting for Oil & Gas software and services. A perpetual Right that is transferable from property to property and therefore exists beyond the life of any of today’s existing producers oil & gas capacity and their associated business risk. Although our costs are large they pale in comparison to the significance of the damage done by these officers and directors, which is accelerating in today’s natural gas price collapse, has not been identified or approached and continues. Therefore anyone and everyone can share in the effort, the success and the reward of resolving this industry catastrophe that has the potential to become a societal catastrophe and therefore be rewarded in the long term.

The Battle

What we know is that there have been many billions of barrels of oil and trillions of cubic feet of gas that have passed through the North American industry over the past four decades and more. We’re told that it’s represented in the balance sheets and was put in the ground by the producers officers and directors. For what purpose has not been explained and maybe there was a productive reason that is beyond our current comprehension. We should keep an open mind to these things. The fact is no one is claiming to have prospered from their involvement in oil & gas and it stands at a point that appears to People, Ideas & Objects where it is placing us in serious jeopardy. 

The leadership has been well compensated during this era. They appear blinded by this and are unable to see objectively past their “muddle through” strategy. Their recent saunter off the stage to clean energy with oil & gas revenues in tow may now be realized to be a step too far and they’re therefore reclaiming to be born again shale producers. The point proves one thing: the money in the form of those oil & gas revenues are on the table and they are going to be directed towards the appropriate managers. I suspect in the first half of 2023 we’ll see some action on the direction of where the industry will be heading. And most certainly away from those that thought they could portray this behavior as normal.

It may soon be realized that coincidental with the officers and directors return and focus back onto oil & gas has brought about their past bad behaviors and failing characteristics. Is this the reason that natural gas prices have collapsed once again? The return of those in “command” and therefore creating the obvious crises that demands they remain in charge? 

The Profitable Production Rights are the means in which the industry can transition to a culture of performance. Based on the Preliminary Specification, our user community and their service provider organizations which are driven by the most profitable means of oil & gas operations, everywhere and always. Where the seven Organizational Constructs define a new culture that is comprehensive, intuitive, appropriate and understandable. One in which those who are concerned with the situation and are looking to actively participate and to prosper in the rebuilding of the dynamic, innovative, accountable and profitable oil & gas producers, industry and sub-industries will be able to. 

Over the next few weeks and months we'll occasionally discuss this topic and determine its viability. I will be reviewing the situation to determine if it is possible and to ascertain what an interim budget will need to be in order to organize and develop these rights if we proceed. 

Reinstating Profitable Production Rights, Part III

 Issues Involved with Profitable Production Rights Licenses

An Inconsistent Software Architecture to What’s "Approved"

People, Ideas & Objects are licensed as the commercial rights holders to the Intellectual Property that I’ve developed. It is the issue of Intellectual Property that is highest on the agenda for the status quo producer’s officers and directors. They’ve never accepted or recognized IP anywhere in the industry before and are hesitant to set a precedent that is counter to the manner in which they’ve operated. The issue of Intellectual Property is the means in which the software reflected in the Cloud Administration & Accounting for Oil & Gas will be secured in terms of its value proposition and therefore its inherent asset value. And therefore how our value proposition is generated and as a consequence it’s the means that we have to generate revenue through the development of these Profitable Production Rights License products and their inherent value. 

Our software architecture therefore falls under the category of a primary concern to the Profitable Production Rights Licensee in terms of securing the leverage for their value proposition which is wholly derivative of People, Ideas & Objects and its licensed Intellectual Property. The Preliminary Specifications seven Organizational Constructs includes Intellectual Property as one of the seven constructs. Please review that section in order to gain an understanding of the importance of IP in this community and the larger oil & gas industry.

What the status quo officers and directors of the producers are willing to accept and what is generally understood in the greater commercial marketplace in terms of software architecture is the following. That commercial ERP software applications as configured today. Should be provided to the marketplace through a number of published Application Programming Interfaces or API’s. The preference would be given to using open source software for its large community and free cost. Then the greater software development environment would have the opportunity to augment the software that is accessible through these API’s in new and innovative ways. Which sounds like an enhanced method in which to deliver software. And in an altruistic world that may be the case. What we need to do is understand the purpose behind the status quo’s desire and motivation to want to pursue this architecture. And compare that to what it is that People, Ideas & Objects are doing with our private API’s of proprietary software accessible only within our licensed domain. 

By publishing an API for use as the status quo desires, People, Ideas & Objects in my opinion would be violating the terms and conditions of all of their licensees provisions. In summary our license grants them the rights to uphold, secure and prepare derivative works. By publishing an API we would allow the producer firms to access the software code without having to pay for it, or to be more specific, never pay for the underlying Intellectual Property and therefore render our value proposition moot. This is due to the fact that on May 6, 2021, the United States Supreme Court issued judgment for Google against Oracle in their litigation regarding Google’s unauthorized use of the Java Programming Language. Citing that use of a published API was “fair use” and not a violation of Oracle’s copyright. 

Producers would however gladly pay for any and all of the “blind sleepwalking agents of whomever will feed them” to conduct software developments for them. We therefore can clearly see the motivation and argument of both sides of this finer point of the law. The status quo and People, Ideas & Objects are seeking to commercially secure what is rightfully People, Ideas & Objects value that is represented in the Intellectual Property developed in the Preliminary Specification and elsewhere. People, Ideas & Objects use that value to orchestrate productive change in the industry and to disintermediate the status quo. The motivation of the status quo is to stop that process and therefore manage the software development process in order to maintain their franchise for another generation. They will compensate those involved for their time incurred, however that is keeping a critical aspect of the industries future in the hands of “blind sleepwalking agents of whomever will feed them” doing only what is instructed of them by the producers officers and directors. We’ve chosen a different direction in terms of the health and prosperity of the oil & gas industry. 

What potential Profitable Production Rights Licensees may take from this is that the makeup of my holdings are somewhat evenly distributed between Intellectual Property royalties, earnings from the revenues they generate and the fees I charge the producers for selling access to the Cloud Administration & Accounting for Oil & Gas software and service in the form of the Flexible Profitable Production Rights Licenses. I’m all in. 

Vaporware

Yes definitely, and we’re actually quite proud of it. We’ve not had to commit to anything that is set in stone and therefore needs to be amended through extensive budgetary expenditure. We’ve maintained a flexibility and financial independence that maintains our ability to focus on the issues. People, Ideas & Objects are the financially unsupported, ostracized and vilified oil & gas ERP provider that has taken all the flak the status quo officers and directors could muster. And we gave as good as we got. We’re still standing and can claim to be the only solution to the industry's existential, organizational issues. 

We are vaporware in the purest form however. Outside of the Preliminary Specification there is little other than our efforts and our results in terms of developing our user community. A process we began in the first quarter of 2014 and a process that demands significant time to organize. Potential user community members have had the 2012 publication of the Preliminary Specification to review and understand the larger vision of how oil & gas will operate. As has the larger oil & gas community. And to spend time in their chosen area of expertise to enhance and expand on the concepts there, determine what it is that they can do to enhance the industry. During the first quarter of 2014, the publication of our user community vision, potential members were also able to see how they’re able to affect the necessary changes in oil & gas. Having the tools of the exclusive license to prepare derivative works to the Intellectual Property, having the exclusive access to the People, Ideas & Objects software developers and budgetary control.

We keep the results of our user community confidential and away from the destructive and envious officers and directors of the producer firms to ensure these people remain safe in their current prosperous oil & gas positions. Working quietly and insidiously on both the future and the past.

Scope and Scale

The ominous nature of the Preliminary Specification has not been attempted in an ERP environment before. This is not a result of our ambition as much as the scale of the issue and the obstinate resolve over several decades by the producers’ officers and directors. Oil & gas is a critical part of how we’re able to enjoy our advanced standard of living in North America. Has that been put in jeopardy? It’s difficult to say at this point, however the prospect of what producer officers and directors will be able to resolve dynamically, innovatively, in an accountable manner and profitably is not probable based on their culture represented in “muddle along.” 

It is interesting to see that Oracle is undertaking a similar scope and scale in the U.S. healthcare system. Moving their proposed system from the current systems facility focus to one in which the patient is the primary focus. It is far more comprehensive in scope and scale than what we are attempting, in my opinion. Deals with even greater issues in the form of individual healthcare. And the U.S. current healthcare systems are nothing but isolated systems operating at each individual facility. Where patients are unable to aggregate their medical history from the disparate silos of independent healthcare providers.

Are People, Ideas & Objects and Oracle’s Healthcare initiatives just a fad in terms of what ERP systems may experiment with? Or are they the necessary response to the demand for systems and organizations to move to a higher level of capacity, capability and organizational performance in order for society to move forward? These questions will be answered from the success or failure of these initiatives. Unfortunately for oil & gas the time, lack of alternatives to the Preliminary Specification and sense of urgency demand that People, Ideas & Objects et al are successful. And this will only be resolved when we are all focused on rebuilding the industry on that basis. Where everyone involved in the industry has a part in making that success possible.

Assumes Oil & Gas Disintermediation is Necessary

To every industry, disintermediation is a necessity for the participants' survival. The ability of the structured hierarchy to survive and prosper in the future is beyond question as it is now functionally unable to perform at the level that society demands. New forms of organization centered around the Internet offer innovative means in which to apply principles of value generation that the status quo is incapable of ever being competitive with. 

We can argue these points as to whether the oil & gas industry needs to be disintermediated. People, Ideas & Objects also assume that the current structure has failed comprehensively. This is not widely evident or shared, however concern is building that the response to any and all business issues is summarily ignored or “muddled through.” 

Another constant that appears in the disintermediation process is the battle between those who seek to protect their status quo turf and those who seek to change. In North America, oil & gas producers' resistance is persistent to the point that their poor performance has damaged all aspects of the industry and associated sub-industries. 

Taking the optimists side of the argument. People, Ideas & Objects consider this an opportunity not only from the disintermediation of the industry. The extent and comprehensive nature of the damage and destruction demands that significant remedial actions be taken to rebuild the service industries capacities and capabilities. To rebuild the producers internal capacities and capabilities in terms of their work-in-progress of the exploration and production process. To rebuild the trust, faith and integrity of the producers that will attract the investment community back to the industry. To ensure the industry and producers are provided with the most profitable means of oil & gas operations everywhere and always, and the consumer is offered an affordable, abundant and reliable source of energy. Therefore why would you rebuild the industry in the current failed method and not use the tools and methods that are available today that are proven to be successful?

Value Proposition

The premise of our extensive value proposition. Which is the value that both classes of Profitable Production Rights Licenses are leveraging. Is that the producer firms were never profitable and were never commercial due to their dependence on and destruction of outside capital for the past four decades. We have established that overreported assets lead to overreported profitability. Taking that as a given there is an insidious cancer that eats away at an industry over the long term when this issue has been evident. “Real” performance is never in question and therefore performance does not become a criteria of evaluation as “it is so easy to attain.” Therefore the performance of the organization begins to degrade to such a level that it is wholly dependent on outside capital for basic operations. Oil & gas’ culture has become the persistence that isn’t changing. And the industry is worthless as its present value is negative and demands capital for basic functioning due to the chronic lack of performance becoming a permanent, unchanging culture.

Unfortunately it is terminal. The culture is useless in a market economy and needs to be trashed in order to elevate performance to become the criteria in which it operates. There is not enough energy in the world that could fight this culture and overcome it in head to head battle. Thankfully for People, Ideas & Objects the oil & gas industry is self-selecting and we are prepared to rebuild it with the performance based culture of the Preliminary Specification. To ensure that the producers are provided with the most profitable means of oil & gas operations, everywhere and always. 

It is the differential between these two industry visions that are the value proposition that makes up what is being leveraged by the Profitable Production Rights Licenses. What we have stated consistently as a $25 - $45 trillion value over the course of the next 25 years. Composed of incremental profitability of $5 trillion. And the $20 to $40 trillion that the producers claim is necessary in terms of capital to rebuild, refurbish, reclamation and expand the productive capacity and infrastructure of the industry. An amount that is not necessary in the Preliminary Specification as the capital costs are recognized on a competitive basis to all other industries in North America. Cash that is generated internally, reinvesting that cash, only to recover it again and again to invest it again and again on a competitive basis to what other industries in North America are able to achieve. Where a capital intensive industry such as oil & gas is understood to have predominantly capital as its costs that are passed on to the consumers. Therefore instead of officers and directors strutting down main street talking about “building balance sheets'' and “putting cash in the ground” the Preliminary Specification “puts cash to work.”

Budget

Few would argue that People, Ideas & Objects cost structure would fall within the domain of $5 billion U.S. What is particularly troublesome for the status quo is to accept an equal amount of Intellectual Property royalties. And there are profits of an equal amount again. I’ve stated repeatedly that these last two categories are merely the appropriate allocation of what are considered reasonable software development margins. Margins of what are generally accepted and earned in the software industry today. If left to the producers officers and directors we would be working for the retirement of our cost plus $5 for our efforts. We may get a thank you but that would be questionable and unreasonable as far as they were concerned. 

In consideration of the value proposition of the Preliminary Specification as identified. The costs of this initiative are incidental to the value generated. This is the justification that People, Ideas & Objects use to support our budget and the further detail regarding our justification is contained in our Organizational Constructs section. Where we describe how each of the seven Organizational Constructs incorporated in the Preliminary Specification generate value for producers and industry. We of course welcome the opportunity to compare the prospective value generated from the Preliminary Specification to the plans and specifications of the officers and directors. We haven’t had any calls for this and are unable to comprehend if there is a plan.