Reinstating Profitable Production Rights, Part II

What do the Flexible and Profitable Production Rights Licenses earn?

High levels of creative destruction in what will be the most violent form are anticipated to occur in the coming years. What revenues are generated as a result of the ownership of a Profitable Production Right License 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 licensees behalf in the Oracle Blockchain database managing each of the specific boe’s. 

If we assume that the Profitable Production Right Licensees implemented a percentage of the oil & gas commodity price as the value in their contract. And for the purposes here we’ll assume a range of rates between 2.5% to 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 attain the 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. That contract would earn, if these commodity prices were capable of providing the producer a 10% profit from these prices. At an $80 price of oil, revenues of $2.00 - $4.00 per day or $730.00 to $1,460.00 per year. For natural gas it would be at a commodity price of $7 and therefore revenues of $1.05 to $2.10 per day or $383.25 or $766.50 per year / boe. 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 provides them the most profitable means of oil & gas operations everywhere and always.

The anticipated, expected or budget price of a Profitable Production Right License has been calculated to be $390 per boe, 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 being assessed on the same basis as all other North American production. They are incapable of shutting down their production process, whose costs are consistently higher and therefore will need to secure Profitable Production Rights Licenses.

The cost of maintaining the software development and user community on a long term basis would need to be factored in when the Preliminary Specification became operational and it would not be material in my opinion. If we consider the $15 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 0.4% of a single year's oil & gas revenues. And post commercial release operational and incremental software development and our user community costs on an annual basis will be much smaller. A reasonable estimate of 25% of the build costs or $1.25 billion / yr. 

Assigning these overhead costs to the Profitable Production Rights License owners, would be an all in cost in the range of $33 to $70 / year / license. For clarity I’ll state that our user communities 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 a cost that are part of the Profitable Production Right License. The Profitable Production Rights Licenses will have no impact on the service provider's fee structure or billing. They will have an indirect impact on the producer's ability to access the service providers through a producer's 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 the software development and our user community which are permanent industry based capacities and capabilities. There will be times when the Profitable Production Right’s Licensees associated production may have been shut-in, suspended or may even be abandoned. [Note, that does not imply that there would be no overhead costs being charged to the Profitable Production Rights Licensees for the software development and 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 the organizational capability to earn profitable production. It is the right to produce a barrel of oil equivalent and process it through the Cloud Administration & Accounting for Oil & Gas. And is therefore reconfigurable in terms of the production it represents. Profitable Production Rights Licensees won’t have the risks associated with the ownership of oil & gas properties. 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 access to earn a profit on a single barrel of oil equivalent. That Profitable Production Right License is transferable at the Licensees discretion, the ownership that you gain by purchasing the Profitable Production Right is assignable, licenseable, leasable and transferable for the period of time as long as People, Ideas & Objects Preliminary Specification remains commercial. Additionally there is no implied role of 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 of the right of access to Cloud Administration & Accounting for Oil & Gas. The producers alternative would be to continue to use the current approach that is systematically tearing the industry apart. 

Today’s producers' tactical management approach has included 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 declaration of bankruptcy. It appears that bankruptcy is the means to deal with shareholders who have become too dissatisfied with the performance of management and how producers are able to 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 the value in the hands of the rights owner. Further endorsing the purpose of the Profitable Production Right by enforcing the separation of ownership of the oil & gas production and the right to process that production through the organizations as represented in the Cloud Administration & Accounting for Oil & Gas. The Licensees would then be able to engage the bankruptcy trustees to reinstate the Profitable Production Rights License on terms that maintain the independent ownership of the Profitable Production Rights License as separate and distinct from the means of production. 

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

The purpose in developing People, Ideas & Objects et al Cloud Administration & Accounting for Oil & Gas software and service is to generate the necessary producer profitability to deal with the demands for capital over the next 25 years. There is no other source of financing large enough to fuel these needs as the producers officers and directors past methods have failed catastrophically. Investors have stated unequivocally that they’ve had enough of these past methods and are refusing to participate further. Continued obstinance by the producers' officers and directors appears to be counterproductive with the pace and trajectory of decline only accelerating. Oil & gas in North America does not have a future in its current configuration. Change is necessary to deal with the issues and opportunities present in the marketplace. Opportunities such as disintermediation through Information Technology and the other Organizational Constructs of our Preliminary Specification. Enhancing the culture of the industry through the wholesale change that disintermediation provides. 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 participating in purchasing a Profitable Production Rights License. To provide the software development revenues to People, Ideas & Objects and initiate the rebuilding process that oil & gas and all the 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 the producer officers and directors that People, Ideas & Objects have experienced. Their participation in the Profitable Production Rights License would provide for People, Ideas & Objects revenues to change their current and prospective holdings into dynamic, innovative, accountable and profitable oil & gas producers.

Our plan for the next few months involves investors getting involved in purchasing Profitable Production Rights Licenses in order to ensure their representative production is handled. To secure their ability to have their representative production processed through the Cloud Administration & Accounting for Oil & Gas software and service. 

Current, past and prospective oil & gas bankers

As above.  

North American based 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.

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

Oil & gas producers based throughout the world.

A way to profit from North American production without the operational, financial or political risk. Both through direct ownership of the Profitable Production Right and indirectly through the most profitable means of oil & gas operations from consistent, marginal, global commodity prices. 

Current oil & gas employees and vendors

Everyone identifies with the personal risks of being involved in disintermediating an industry. It brings out the possibility they’re attacked and subject to severe, unnecessary career consequences. The number of people who are of like mind to People, Ideas & Objects is significant in volume and I have sought to keep their information confidential for their safety and personal financial benefit. User community members who are sourced from this group are part-time positions. Their commitment will be required when their service provider organizations are being formed, well into the software development phase. There is a desire throughout the industry that something is done 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 enhance their participation level in the industry. Having an indirect value being generated from the production of oil & gas 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 are enhanced through the value proposition made available through Information Technologies disintermediation.

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 provide additional motivation for 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 these past few years. Faith and trust in 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” application of logic. Producers will need to conduct a recapitalization of the service industry through active philanthropic rebuilding of its capacities and capabilities. Providing evidentiary proof that there will be a second, third and more paychecks through the times when producers potentially destroy their businesses once 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 arms length assessment of their past management.

Our user community and their service provider organizations. 

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

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

These paint an ideal situation where the associated risks and issues of the software and services development are completed on budget and within a reasonable time. They assume the appeal of the Profitable Production Rights Licenses as explained to this point. All inherent risks associated with the purchase of this product are mitigated or overcome. This implies a collective and collaborative effort on behalf of the industry in order for its success. The scale of the issue demands such. And although we’re not there yet, I believe we are close to the time in which the understanding that actions in the form of the collective and collaborative industry wide effort are necessary and will be evident to all.

Reinstating 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. On March 15, 2022 we suspended our Production Rights initiative to pursue what we were calling our “Marshall Plan.” A means in which producers could deal directly with the issues in the industry as a result of it being elevated to the level of a political weapon in the form of the ongoing European crisis. To which producer officers and directors applied their “muddle through” strategy. The confusion and lack of coherence in the global oil & gas marketplace is evidence that all is not as it seems. 

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 have an interest in oil & gas in their transitions to clean energy and their declaration that shale will never be commercial. A capitulation of the oil & gas business that others were responsible for building. Officers and directors have proven they don't have an understanding of, need or how to go about earning “real” profitability over these past four decades. Oil & gas producers have proven to hold a legacy and culture that is incapable of change and one that is counter to profitability and productivity. The first step in changing a culture is accepting there’s an issue. The key issue being chronic and systemic overproduction, or unprofitable production, such as natural gas is experiencing today. An issue People, Ideas & Objects et al resolves. An issue we see today in natural gas. Oil & gas producer officers and directors are not interested in being transparent in their accountability through their proven specious accounting methods and reporting, ad hoc ERP systems and dysfunctional organizations. 

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 be provided with? Societal jeopardy is now in play with what I perceive is the industry's inability, over the next decade, to maintain the volumes of shale’s deliverables over the mid to long term. For example U.S. natural gas production from shale is almost 80% of its total production. With 10,000 to 25,000 man hours of mechanical labor contained within each barrel of oil equivalent, the producers officers and directors self-interest overrides all other concerns. With all that has happened between producers and their investors since 2015. With the well defined expectations of their investors. It’s difficult for me to comprehend how they can explain their desire not to invest in enhanced profitability. 

I came across this statement regarding what is defined as 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 an interesting period where a transition has been taking place in the business community. One that has seen new Information Technology driven business models disintermediate the old with new, highly productive and value generating methods of conducting business. 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 little 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. 

It is People, Ideas & Objects opinion that the status quo has failed. Since 2015 they have unsupported capital structures. Have failed to act 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 the motivations for their people to seek employment there, capacities are operating at 40% of prior levels. And possibly most detrimentally of all, the leadership in the industry do not concern themselves with these concerns. Instead saunter off the stage into unrelated businesses involved in “clean energy.” Taking the oil & gas revenues in unauthorized fashion, that were generated by their investors and are the only source of financial capability available to fund the rebuild of this industry.

Producers are organizationally unprepared to approach their most challenging future and have not supported any method of organizational development. Leaving People, Ideas & Objects as the only alternative in the marketplace to this failed, archaic method. The only solution that has been researched and reviewed. Constructed on the basis of performance that provides for 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 that North America attains its optimal economic prosperity through energy independence by commercializing shale. 

People, Ideas & Objects et al’s Profitable Production Rights Licensees own the keys that 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 what usable life they have in the status quo, let that expire, and check to see what may be available then. In the meantime explain to their investors why they continue their unprofitable ways.

Profitable Production Rights License

The origins of our Profitable Production Rights Licenses were previously captured within a cryptocurrency or coin. We have deemed this to be unnecessary as the ability to lease these rights will be contractually managed within the Profitable Production Right Licensees control. The Coin was a distraction that may have tainted the prior method acceptability and with all that has happened in the crypto arena, I’ve realized that the coin was featureless for our purposes and redundant. 

In terms of implementation, what we need is the ability to write each of the Profitable Production Rights Licenses into a blockchain solely dedicated to securing the Profitable Production Rights License. We thankfully are able to do that through Oracle Cloud Infrastructure and the use of their Oracle Autonomous Database’ 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 producers' access to the software and services of People, Ideas & Objects et al and will manage the licensees revenue and expenses on their behalf. 

Any assignments, sub-leases or transfers of the Profitable Production Right License do not override or delete the original purchaser's transaction in the database; they will write a new block on the chain, or row on the instance of the Oracle Blockchain database. Each Profitable Production Rights License is therefore aggregated through its serial number in order 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 licensee of the Profitable Production Right. The contract they execute with the producer for the production will be maintained in this database and form the basis of the Profitable Production Rights Licensees billing to the producer. Where the licensee holds the access rights to what we believe will become the only means to profitably organize North American oil & gas exploration, production, administration and accounting. From Oracle.

A blockchain table is an append-only table 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 implementation of blockchain technology. It does not distribute a blockchain to other servers for validation and verification of the blockchain in the event of a suspicious transaction. It is focused on higher transaction based performance than the traditional blockchain technology is able to provide. A necessary requirement for our purposes. It is managed by the Oracle Autonomous Database and will act as a gatekeeper to 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 the Profitable Production Rights Licensees security of their rights. Each of the North American oil & gas producers will need to secure adequate Profitable Production Rights Licenses in order 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 in which producers can organize themselves profitably.

Flexible Profitable Production Rights License

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

Therefore we are introducing two categories of Profitable Production Rights. What has been described to this point as one category. The second category will be assigned on the basis of 33.3% of the total amount of Profitable Production Rights License and be designated as Flexible Profitable Production Rights License. These will absorb the variability in production volumes up to the 33.3% level of all production on a priority basis. Whereas each producing property will automatically be assigned 33.3% of the Flexible Profitable Production Rights License to offset any production decline. Therefore the Flexible Profitable Production Rights License indemnifies the Profitable Production Rights License owners in case of variable production volumes up to the level of 33.3% 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 that we’ve seen in this past decade. As production is being shut-in due to the lack of profitability, this is anticipated to be a small percentage of the total output of North America. Therefore if the shut-in production is attributable to the lack of profitability and meets the following conditions. 

Where the property is being actively reworked to be put back into production. The defined purpose of the Preliminary Specification. 

Then the Flexible Profitable Production Rights License will assume those volumes as part of their overall allocation and absorb the revenue loss on 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 of the Profitable Production Right Licensees to seek new production elsewhere. Until such time as the production deliverability in North America dropped 33.3% below the base production volume established for the continent. Then there would be no effect on the Profitable Production Rights Licensees, only on the Flexible Profitable Production Rights License in terms of revenue loss. 

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 myself. I am accepting 16.65% of the overall licenses, or half of the Flexible Profitable Production Rights License in consideration for 50.0% of the compensation of my 33.3% Intellectual Property royalty portion of the Preliminary Specifications budget. The other half of the Flexible Profitable Production Rights License is in consideration for the same percentage values of the Profitability 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 the producer firms that need to secure Flexible Profitable Production Rights Licenses on one third of all their production. In the interests of transparency and accountability,  I am committing to publish the communications and negotiations that I have with producer firms regarding their securing the Flexible Profitable Production Rights they need for their production.

What do the Flexible and Profitable Production Right License earn?

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

Producers methods today have failed, have destroyed what value had existed in the industry prior to their administration and the 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 in fact failed organizations with capital structures that are unsupported. Officers and directors today are managing a capital intensive industry with reasonable cash flows that are only capable of providing for their executive compensation. There has been and will be no change from this during their tenure. It is within that statement that the value of the Profitable Production Rights can be discerned. What is the difference between a truly profitable oil & gas operation and the one that has been carried out in the industry since the initial 1986 oil price collapse? Where the North American oil & gas industry would be capable of performing against all other industries for capital. That is the value that the Profitable Production Right Licensees offer the producer firm. It is within this People, Ideas & Objects value proposition that the Profitable Production Right Licensees are leveraging their revenue stream. The exclusive right to grant 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 the Preliminary Specification and cover the full scope of exploration, production, administration and accounting for the start-up to integrated producers.

Although the producers have not listened to their investors and bankers demands to accommodate their needs. It will be interesting to see the producers' argument why they’re not participating in the Profitable Production Rights Licenses for the production they have. Why are they so committed to unprofitable production or is clean energy really that attractive? 

Why Develop Production Rights?

 The issue of funding the development of People, Ideas & Objects Preliminary Specification and our user community has been a difficulty I've been unable to resolve at this point. The budget demand is significant, as the scope and scale of the project is substantial. We are further constrained by the behavior of the oil and gas producers towards their suppliers, and most particularly their ERP software suppliers since the early 1990s. Using them to ensure that their ERP systems remain of a certain quality and that no tier 1 providers are involved. That no software developments have or are made that enhance the development of the organization outside the bureaucracy itself. These objectives were achieved simply by ensuring that their ERP suppliers were kept on starvation budgets to ensure the bureaucrats activities remained as unknown and unknowable as could be comprehended. In our White Paper “Profitable, North American Energy Independence - Through the Commercialization of Shale” we detailed on page 18 the approach producers provided to the last two tier 1 ERP providers Oracle and IBM in 2000 and 2005. They were seeking to rewrite oil and gas ERP systems to bring them up to date. Both of these providers received no financial, but also no participation from producers in these efforts. As a result they left the industry in terms of providing their tier 1 ERP systems. 

It has been expressed directly by the producers' investors for the past number of years that they need to see tier 1 ERP systems being used by the industry. This and the general call for accountability are so easily erased through the shift to clean energy investments. Investment in tier 1 ERP systems is one of the most prosperous areas in Information Technology. Although technically Oracle is leading in the market they are not a pure play with other software, services and hardware being produced. Their market cap is $268.6 billion, SAP is at $167.49 billion and Workday’s is at $69.64 billion. Workday is a startup that was founded by the individual who started PeopleSoft which was sold to Oracle. There are a number of providers such as People, Ideas & Objects that fill a secondary industry of providing specialty services. The failure orchestrated by these bureaucrats with the tier 1 providers that we are detailing here is generally well known and understood throughout our industry. ERP investors in the secondary industry providers of oil and gas producers have bowed out since around 1997 when the antics of these producers were on clear display. Although I have not been looking for any equity investment, there certainly haven’t been any that have come knocking and there has generally been no interest in this market. Elsewhere outside of oil and gas it’s booming though. 

I want to emphasize once again the role that oil and gas should play as a primary industry. It generates the oil and gas revenues which are perpetual and are as a result of the efforts of themselves and all the secondary and tertiary industries that support oil and gas. In many cases these secondary providers are dedicated exclusively to oil and gas. They have no independent revenues outside of what is generated from the oil and gas producers. Oil and gas is a capital intensive industry with a small footprint in terms of the number of people it employs directly. Indirectly they employ far greater numbers of people in these secondary and tertiary industries which are unable to generate revenues outside of their activities with the producers. I feel it is therefore incumbent upon the producers to have eliminated the boom / bust cycle from the industry. This cycle creates a far greater impact in terms of its whiplash effect in the secondary industries and creates great difficulties in securing the appropriate means of operating stable operations there. It is however easy for producers to accuse these providers of being greedy and lazy during times of high demand only to slash their field activity levels to as much as 25% and halve the pricing of the supplier. Cutting the suppliers sole revenue streams to 12.5% of what they were just months before when they were accused of being greedy. 

This pompous, unconstrained, inappropriate and damaging process does not damage the take of the bureaucrats at the producer firms. They’re fine and they thank you for asking. This is certainly not how business is operated. Extracting power out of this process is the toxic value that has fed the bureaucracy with the all conquering belief that what they said was what was to be. Creating the dictatorial methods of operation that were used when dealing with employees, vendors and the service industry. Why listen to investors, why do anything when “muddling along” and “doing nothing” have been so productive and effective, for the bureaucracy that is. 

There is an inherent conflict between People, Ideas & Objects and the bureaucracy that is a classic tension that has existed throughout the 20th century. The bureaucracy is a representative example of the socialist form of centralization and we are the contrast of decentralization as represented in this new tool called the Internet. We are natural adversaries and were never intended to work in harmony and for that I am certain that I have never deviated from my role in the relationship, and am only happy to be the one that provided and will continue with our flak directed their way. The contrast between these two alternatives' effectiveness is beginning to become clearer for all concerned as the centralized model's failures become more evident through its inevitable descent. Disintermediation is not a choice or option available to industries. It is a force that is powered by organizations that are more productive and profitable. Choices to turn to in 2021 are limited in my opinion to the Preliminary Specification, its user community and their service provider organizations. It’s success is something that I’ve worked to design the necessary ingredients into the methods and means throughout our organizations and the specification itself. It will need to be the sense of urgency and desire of the many people who are affiliated with these organizations and these developments to take it to its ultimate, successful level of achievement. Driven by the vision of the Preliminary Specification. 

People, Ideas & Objects fundamentally understand that the bureaucracy can’t, won’t and will never participate in the development of the Preliminary Specification, our user community and the service provider organizations that are conceived to displace their centralized systems. In addition to all of the above difficulties the number of producers, and particularly the majority of the production volumes, are contained within a small number of producers. Therefore suppliers are unable to gain any traction or diversity in their clientele. The service industry also has geographical areas of operations that further constrain their exposure to the number of producers they’re able to access. Granting even more power to those bureaucrats in their dealings. Vendors have also been subjected to the treatment of having their proprietary developments and Intellectual Property freely cast to the four winds and actively handed to a vendor's competitors / potential competitors to spur further price competition in the markets they’ve grown to depend upon. This is generally well known, understood and accepted as the price to pay in the industry. People, Ideas & Objects treatment of Intellectual Property is a trojan horse to this method of operations and something that can’t, won’t and will never be accepted by the bureaucracy. It is also the reason that none of the Intellectual Property of the industry has been captured anywhere and at any time. This strategy made the engineering and geological IP available to all producers without obligation or concern. Not how an industry can operate in the 21st century. And in fact illegal. Within the Preliminary Specification we have made Intellectual Property one of the organizational structures that define and support the oil and gas industry. 

It has always been generally understood by me that the source of any revenues for People, Ideas & Objects et al will have to come from the primary revenues of oil and gas production. How and where is the issue. Producers as I’ve mentioned can’t, won’t and will not ever do so. They are conflicted, it is contrary to our adversarial positions and would only diminish the means of their power and money. People, Ideas & Objects have proven this specific point through the legacy of our efforts. We put the icing on this cake when we directed the question to the boards of directors of the producers. And their choice on August 31, 2021 was to pursue clean energy. This is a major impediment to the needs of a user community that depends on a source of financial resources that will be available to complete their work. The community itself is in great career jeopardy by committing to the project by self identifying themselves to the bureaucracy while the bureaucracy still exists and dominates the landscape. Without the protection and security of an alternative that provides for their opportunity to secure that successful alternative, there’s not going to be their wholesale and necessary commitment. If they should fail in not being able to resolve the industry problems it would be detrimental to the rest of their career, wherever that may be. They’ll therefore be highly motivated and driven by success. At this point no one other than myself is aware of who is involved in this project and that will remain that way until such time as we begin with the financial resources secured. They are even unaware of each other, in case the bureaucracy should / have decided to see for themselves who’s involved. 

And then there’s that budget. Which has always been inordinately large and out of scale of reality and probably a distortion of that reality and sanity. Yes, it is. Welcome to my nightmare. As we enter the period where the industry's collapse is beginning to be seen as more and more terminal, we'll begin to see more and more of the consequences of the damage and destruction that has been caused by the financial mismanagement of the industry. Four decades of such antics will quietly erode the value from everywhere. Possibly, just possibly People, Ideas & Objects have always been aware of the problem, have provided a sound solution in the form of the Preliminary Specification et al and scoped out its needs accurately in its, out of this universe, scale of budget! And then there is that multi-trillion dollar value proposition of ours… We’re now progressing to a point where the clarity of the deficiencies of the service industries capacity and capabilities will become more apparent. Where the response of the producers will be constrained by their drive to save the planet and their lack of activity to address the real consumer demand issues of oil and gas. When even Vladimir Putin wakes in the middle of summer in a cold sweat thinking that his country's supply of natural gas is in jeopardy… We’ll review the history in two decades from here and know that that’s the point where this decline started. 

This brought about the need for a solution to the funds necessary to solve the problem. Earlier in our lifetime we considered developing an ICO, an initial coin offering, however the crypto market and the virus had other plans. Inherent in that plan however were what we called Permission Rights. The ability to sell the coin with the exclusive access rights to the software of the Preliminary Specification and the service providers for a defined volume of production. The coin rights would need to be aggregated by oil and gas producers in order to access the system and services to meet their production profile. And therefore the coin owners would generate a monthly fee for these rights of access. These rights would be managed by the smart contracts of the underlying blockchain technology of the coin. This value and leverage was determined as a result of the logic of the 21st century. Where the only thing of value is Intellectual Property. Software and services are derivative of Intellectual Property as they are with the IP of People, Ideas & Objects. Therefore, from now on it will always be not enough to own the oil and gas asset, you’ll also need access to the software and services that make the oil and gas asset profitable. This method has been what we are now calling our Production Rights. 

As a startup we are outside of the regulatory processes and unable to meet those demands for several years, at a minimum. We aspire not to do so and remain a private company focused on the solution. I’ve detailed an exit strategy for myself where the user community is granted the Intellectual Property that makes up these communities upon their successful completion. As our budget defines, I get paid as the money comes in the door. I am unable as one individual to make much of a difference in an organization that demands five thousand man years of effort to complete. Our user community needs to be the ones with the motivation and drive to succeed. They’ll be the ones who live or die, career, and business wise on the basis of their success. I see the Production Rights separate and distinct from these transactions, licenses and grants. They are unique in the environment, but wholly dependent on the success of the user community fulfilling their role.

We are passing the responsibility, accountability and the authority of this project's success to our user community. We granted them in the user community vision the power they need to make the changes to ensure the software is developed in the vision of the Preliminary Specification. I am not abdicating my responsibility and authority in this development. I am committed to ensuring the integrity of the user community is undiminished by outside forces. That is what I’m able to do on a reasonable basis to ensure the success is achieved. Professor Larry Arnn is also the president of Hillsdale College. The following quotation captures succinctly the situation we have, the important role the user community occupies and how they must approach it. 

Hard cases are hard to tell, but you can consistently make better judgments if you remember what your aim is. And what your aim is, is that people should get a chance at an effective life. And one of the elements is that you can’t do it for them. Churchill loved to say in his speeches, “remember after we’ve done all that we can do, life will still be pretty hard anyway. It’s a human life. We should be careful not to take that from people. Their achievements need to be their achievements. The richness of their life will all come from that and nothing else. So there you have to be looking to establish a society where we’ll all get a chance to face the difficulties which ultimately will never go away.”

Who is best to undertake these difficult tasks which we face? I’ve made my nomination. Our Production Rights are the fuel we need to make this happen. 

On the other hand we have no shortage of work to do. Much needs to be done in the next few years. The Preliminary Specification needs to be built. The engineering and geological explicit knowledge needs to be captured as Intellectual Property and developed. New oil and gas firms need to be formed, capitalized and organized. Assets need to be transferred to these new producers in innovative, strategic and tactical ways. In this process we’ll all be helping the current producers to travel faster down their chosen journey to clean energy by disposing of dirty oil. This transition to the Preliminary Specification is something that must be done to deal with the financial difficulties the industry is plagued with from the current administration. This also needs to be done as preparation for the future. And to learn from the experience of this transition as we’ll be faced repeatedly with situations that share this same scope and scale of change in the near future of this business. We’ll therefore be somewhat prepared and experienced in challenges of this nature. Please review our Production Rights to see how everyone can participate in making this new oil and gas industry happen. An industry where it will be less important who you know, but what you know and what you're capable of delivering, what the value proposition is that you’re offering?

Those interested in joining our user community are People, Ideas & Objects priority and focus. The Preliminary Specification, our user community and their service provider organizations provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations, everywhere and always. Setting the foundation for profitable North American energy independence, everywhere and always. In addition, our software organizes the Intellectual Property of the exploration and production processes owned by the engineers and geologists. Enabling them to monetize their IP for a new oil & gas industry to begin with a means to be dynamic, innovative and performance oriented. Providing a new investment opportunity for those who see a bright future in the industry. A place where their administrative, accounting, exploration and production can be handled for the 21st century. People, Ideas & Objects have joined GETTR and can be reached there. Anyone can contact me at 713-965-6720 in Houston or 587-735-2302 in Calgary, or email me here. 

Priority One in North American Oil and Gas

 Is it possible the bureaucrats have taken the advice inherent in the Preliminary Specification to heart? Accepting oil and gas commodities are economic price makers and that North American producers' chronic overproduction has caused these prices to collapse over the past number of decades. Have they now determined that this may be the key to a new level of prosperity for them if they were to adopt their own price maker mechanism in some form as their strategy? What I stated in Tuesday’s blog post is valid and understandable by most people, “you can’t get blood from a rock.” Which is possibly the most common saying but there’s many others. No one’s interested, unless they occupy that obscure group known as auditors, in metaphorically kicking dead horses. With signs of life being evident in the price of oil and gas. I would have to say that it’s primarily driven by a renewed belief that clean energy is not going to carry the freight and we’ve all maybe misunderstood, as consumers, the real value of oil and gas. The Texas snow storm was the beginning of this realization. California is always a leader in such things and Europe, who has been one of the largest proponents of clean energy these past decades, are each experiencing their folly and consequences of their prior bad decisions. And it’s only September. I’ve quoted this specific quote of Winston Churchill’s a number of times before. It may be appropriate to review it again.

In Churchill’s speech we may be reminded of certain human characteristics which have not changed after all these years: “There is nothing new in the story….It falls into that long, dismal catalogue of the fruitlessness of experience and the confirmed unteachability of mankind. Want of foresight, unwillingness to act when action would be simple and effective, lack of clear thinking, confusion of counsel until the emergency comes, until self-preservation strikes its jarring gong—these are the features which constitute the endless repetition of history.”

The more important point to make is that instead of being the lost cause and everybody’s second cousin that you don’t necessarily have to talk to. Oil and gas is now everyone’s favorite son. There’s value being seen again and the potential for an alleged amount of free cash flow being generated. This has two detrimental effects for our good friends, the bureaucrats. The first, which they may not have foreseen, will have them reflecting positively on the times where oil sold for negative $40. This first effect is the new level of expectations the capital markets have already placed on producers. They’re going to have to perform now. Where is the upside in investing in the firm? If a stock offering were to be prepared, who would be interested in paying these higher share prices? And they’ll need to be accountable for that performance with the expectation that they’ll meet or exceed the capital market returns available from other industries. Unfortunately they’re now on record as of August 31, 2021, just one month ago, with their decision that proves they can’t, won’t and will not ever make the changes to commence the effort to begin to account for their actions. That leaves them relying on their legacy and historical record of performance as to how they’ll manage the future of their enterprises. And their shareholders can take that to their virtual bank accounts.

The second point is the money itself. And more importantly who outside the bureaucrats will ever see it. Will oil and gas continue to provide these persistent bureaucrats with the means to continue expanding their wealth. Knowing how to avoid disintermediation has turned out to be a far more valuable business for them. Or will producer firms begin to be rebuilt by the investors in the vision of a dynamic, innovative, accountable and profitable footing as offered in the Preliminary Specification? I have documented the specious nature of the oil and gas producers earnings that were reported. With this alleged money now on the table the fight will begin in earnest. The two combatants positions are well defined and could not be in further opposition with one another. On one side is the oil and gas investor, who on a wholesale basis suspended their support of the producers starting in 2015. Banks are of a similar mind. And the producer firms themselves who have done nothing to remediate any of their past actions, performance or accountability, they’d muddle through as their holistic strategy. Who are now on record to not be seeking heightened accountability as their response to the direct request from their investors. Producers who have turned their back on oil and gas when they were no longer able to provide a future vision that was viable and commercial under their management. And in unauthorized fashion shifted the focus of their firm's to the “clean energy” industry. These are the positions of these two adversaries and the acceptance or rejection of either will be sorted in the short term. And I would suggest the resolution of this point will be the industry's first order of business. 

As background we have an industry that is operated on the basis of ERP systems that are designed, mostly through financial neglect that is deliberate on the producer bureaucrats behalf, to be part of their overall opaque accountability. Systems that are not provided by tier 1 ERP systems providers or developed within the past few decades of this century. It has been an expressed request by the investors that the producers adopt a tier 1 ERP system such as Oracle Cloud ERP, the base of the Preliminary Specification, to begin managing their operations and to make them accountable. Producers' choice to keep the existing ERP systems providers on a starvation diet since 2005 has been effective. Therefore never creating any competing capability or capacity to their franchise. Yet there has been a technological revolution that is leading to new, innovative and dynamic business models that are transforming primary and secondary industries throughout North America. Disintermediation is resisted by the status quo in all of these industries that are subject to its principles. Resistance to disintermediation can best be achieved through the budget process to solidify the ERP’s systems support of the bureaucracy. Organizational change therefore is otherwise impossible.

We have a record of performance in oil and gas that is well below sub par and wholly misrepresented in the financial statements of the producer firms. This misrepresentation continues with a cover up being obscured through the lack of appropriate systems development. My competitors have done remarkable work without even scraps being thrown their way. Now we have two well defined visions of the next generation of oil and gas. One involving continued unaccountably, poor performance and an abandonment of the primary business of oil and gas for the pursuit of a new industry in which producers have no capability or capacity. That being their commitment to clean energy. Where failure will somehow happen daily but never discourage those who are committed to saving the environment. Who will argue with that? The other being the Preliminary Specification which is designed for the commercialization of North American energy independence, which includes shale. Has a defined value proposition that deals with these issues and sets the industry on an appropriate course of action. Does anyone in the industry argue that profits are what are needed and the lack of profits are what have brought us to this disaster?

There’s going to be an ever growing stack of money being made by someone. If we expect those that have authored the damage and destruction of the industry to this point. Who have shifted their focus to clean energy in hopes of sealing a future of absolute unaccountability. Who have violently, from my perspective, resisted the opportunity to orchestrate the change voluntarily and set the industry on an appropriate trajectory. If you believe the producers, then there’s good news, you’ll no longer have to read anything that I write. If you believe the hype coming from the boom birds who’ve brought these claims to us before and then only invoked the excuse, blaming and viable scapegoats as to why it failed. That could be sooner than you think. This will be the 146th declared boom from these people in the time that I’m aware of. Theirs has worked before, I hope for everyone's sake that we don’t get fooled again.

On the other hand we have no shortage of work to do. Much needs to be done in the next few years. The Preliminary Specification needs to be built. The engineering and geological explicit knowledge needs to be captured as Intellectual Property and developed. New oil and gas firms need to be formed, capitalized and organized. Assets need to be transferred to these new producers in innovative, strategic and tactical ways. In this process we’ll all be helping the current producers to travel faster down their chosen journey to clean energy by disposing of dirty oil. This transition to the Preliminary Specification is something that must be done to deal with the financial difficulties the industry is plagued with from the current administration. This also needs to be done as preparation for the future. And to learn from the experience of this transition as we’ll be faced repeatedly with situations that share this same scope and scale of change in the near future of this business. We’ll therefore be somewhat prepared and experienced in challenges of this nature. Please review our Production Rights to see how everyone can participate in making this new oil and gas industry happen. An industry where it will be less important who you know, but what you know and what you're capable of delivering, what the value proposition is that you’re offering?

Those interested in joining our user community are People, Ideas & Objects priority and focus. The Preliminary Specification, our user community and their service provider organizations provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations, everywhere and always. Setting the foundation for profitable North American energy independence, everywhere and always. In addition, our software organizes the Intellectual Property of the exploration and production processes owned by the engineers and geologists. Enabling them to monetize their IP for a new oil & gas industry to begin with a means to be dynamic, innovative and performance oriented. Providing a new investment opportunity for those who see a bright future in the industry. A place where their administrative, accounting, exploration and production can be handled for the 21st century. People, Ideas & Objects have joined GETTR and can be reached there. Anyone can contact me at 713-965-6720 in Houston or 587-735-2302 in Calgary, or email me here. 

Production Rights Announcement

 People, Ideas & Objects have been busy these past few months transitioning our initiative to a more sustainable foundation. One that will be more viable as a business concern and not dependent on the existing producers' good faith. We began this transition in late June 2021 with a series we carried until the end of July that documented how we would respond to an RFP (Request for Proposal) if we were ever asked for one. We of course never were expecting to receive one, however this exercise sought to differentiate our solution from the competition in the identification and support of the five primary Organizational Constructs inherent in the Preliminary Specification. In summary these consisted of the Joint Operating Committee, Markets, Intellectual Property, Information Technology and the support and expansion of Specialization and the Division of Labor. To name just the highlights. I directed the RFP at the producers Boards of Directors as they’re the ones that ultimately make such material decisions such as which ERP system the firm will use. I then placed tight deadlines on the producers knowing full well they would never comply with the logic and common sense of our RFP or the Preliminary Specification and we would then be able to disengage from them in terms of any obligation of having to work with them. Our legacy has been the thirty years of trying to do exactly that to resolve the issues that have fundamentally destroyed the financial, operational and political foundations of the industry during their watch. Issues that have been evident and present on the global stage since 1986, with our Preliminary Specification addressing them specifically and itself being published December 2013. We did not see placing strict timelines on these boards as unreasonable. In our opinion they’ve had many decades to contemplate such decisions.

Our writings then moved on to expressing the consequences of not moving forward with the Preliminary Specification from the perspective of People, Ideas & Objects. It was this perspective of mine, born of frustration and disbelief at the cumulative damage and destruction that has been caused, that possibly jaded the marketing aspect of what I was selling in those August 2021 blog posts. I then detailed our new plan, which is not fundamentally different from the old plan except for the one critical difference that was identified. It still consisted of our user community driven software development, conducting the industry wide structural changes of moving from the producers fixed cost accounting and administrative capability and capacity, to an industry based, variable cost, accounting and administrative capability and capacity. Managed by the user communities service providers through the 13 modules the Preliminary Specification. 

The change in our plan is the method these developments are funded and what those who were funding them gained in return. We first documented the beginning of the idea of “Permission Rights” in our Initial Coin Offering in an appropriately named blog post on September 11 of 2017. What the Coin was designed to do was to enable its holders the exclusive right to access the Preliminary Specification of People, Ideas & Objects and the services of the service providers to have their accounting and administration managed by the systems they were financing. The advantages of doing so were comprehensive and built value for the prospective coin holders in the following manner. The commodity price differentials between what the status quo producers have accepted throughout the past 35 years they’ve been operating their firms and what the real costs of oil and gas production are, is well documented in their published financial statements. They’re past acceptance of these is the precursor to future behaviors. Therefore we can establish a base case of what was and would be accepted by them vs. what the market prices for oil and gas will be as a result of the operational Preliminary Specifications decentralized production models price maker strategy would provide. That commodity price differential is also called People, Ideas & Objects et al value proposition that would have in turn financed a fee paid to the coin holder by the producers to access our software and services. We were attempting to monetize our value proposition through access rights to our solution. The coin holders would be granted the rights to produce x boe / day. Therefore the existing producers would need to aggregate the necessary “Processing Rights” to have access to the system and services which made them profitable. The assumption at the time was producers would not want to be asked by their shareholders why they were not profitable.

This went over like a lead balloon in the producer firms. And for reasons other than the coins viability we pulled it in March 2020 due to the crypto currency market and covid induced collapse of the producers. There is a nugget of logic contained within the basic idea that could be used to finance not only the much needed development of the software and user community. It would also enable those who acquired what we are now calling “Production Rights'' the ability to process their accounting and administration through the software and services they funded, but also manage their production and exploration processes in a dynamic, innovative, accountable and profitable way, everywhere and always. In turn earning the Production Rights holder, not just a fee from the differential, as with the former Permission Right, but the entire differential from the price of the accepted status quo producers behavior and the market price under the Preliminary Specifications price maker strategy. This may be achieved through the leverage provided by the Production Rights to exercise the movement of the existing producers' poorly performing assets to their own ownership, under substantially different financial conditions. Theirs being profitable where in essence the entire $25.7 to $45.7 trillion People, Ideas & Objects value proposition over the next 25 year period of operation would be earned by these new asset owners, the Production Rights holders that evolved into the new oil and gas producers. 

The behavior of past producers is evident today in their giddy approach to the news of their staunch efforts and the hard work they’ve undertaken to better manage their firms, or is it just the market conditions temporarily raising the price of oil and gas again. Soon we’ll also see their response, which may miraculously look much like their response was in the past. Is consolidation the workable solution for them to strengthen their self interest and enable their hold on power, or will we see something else? Nonetheless it’s on to clean energy all the time now and Shell has proven that by selling the one premium asset that drove the industry off the cliff last time. The Permian. We discussed a number of new and innovative possibilities as to how the “Production Rights” holders could begin these asset transfers in the discussion of our blog series “Oddly Enough, That’s Not Much Different Than the Old Plan” this September. Starting with non-operated participation in Joint Operating Committees. Understanding how banks are so pleased with their loans performance, what motivation would induce them to move the assets to a more profitable ownership. The sky’s the limit in terms of what’s possible to transfer these assets in my opinion. 

In terms of adding exploration and production aspects of a producer firm to the list of administrative and accounting, this isn’t anything new to anyone who may have read the Preliminary Specification in detail. There was only one change made in that blog post series that was not in the specification and that was detailed and identified. The E in ERP stands for enterprise and if you're only handling a part of a firm you’re not ERP in my opinion. The problem we discussed in that series was none other than the looming shortage of engineers and geologists that is well known and discussed throughout the industry. The only solution to this is what People, Ideas & Objects have proposed in the Preliminary Specification and is resolved through the use of the Intellectual Property construct of developing the explicit science and technological knowledge of the industry. A knowledge base that has been ignored and left to atrophy for reasons that are documented there. One in which is open to the engineers and geologists to acquire themselves and establish their own producer firms, IP operations and service organizations to deliver the tacit knowledge associated with the explicit knowledge they’ve documented that forms their IP. People, Ideas & Objects hopes to have motivated the further breakdown in the technical resource base of the existing producers. Both from the point of view of the Intellectual Property and as the motivation and commitment of the engineers and geologists to conduct these IP related activities. And therefore would form the science and technological resources of the new oil and gas industry we’re constructing. 

I believe that People, Ideas & Objects, our user community and their service provider organizations have taken a balanced approach to the industry to ensure the industry is provided with the most dynamic, innovative, accountable and profitable oil and gas operations everywhere and always. Profits are what make the industry prosperous and healthy, and profitability from a reasonable, timely and accurate accounting basis. Without these profits the greater oil and gas economy suffers unnecessarily and that only leads to greater issues. There would be no one outside of the self interested bureaucrats that would argue that “real” profitability is what has been missing and must be restored immediately. Profits are the only source of funding the industry will have to resurrect itself. The credibility, ethical nature and trust that has been destroyed over the past decades will take at least a decade of prudent management by our good friends to prove otherwise. They’ve chosen not to be concerned with profitability and they’ve not responded in any way to the demand for more accountability from their shareholders. What is it that we’re expecting? Or are we to play the fool again in two years by giving them one more chance today?

At the same time People, Ideas & Objects plays in a number of critical dialectic activities. To ensure the consumers are provided with an abundance of energy at affordable prices. Oil and gas is the reason that the mechanical leverage we prosper from is possible. It will be the most powerful economy in the world that will also be the largest consumer of energy. Therefore our obligation to ensure profitable energy independence needs to be considered as part of what we’re undertaking. This demands that innovation on the science and technology of engineering and geology be at the forefront of the activities of those involved. Structured innovation within the industry and structuring it within the firm are the critical means in which innovation comes about. To suggest that it just springs out of air is foolhardy in the extreme. Controlling and guiding it, ensuring that it isn’t pursued over and over again with the associated redundancies and cost drain. Where those that work the hardest for the biggest developments are rewarded and recognized for their achievements. Not robbed and castigated as they are by today’s bureaucrats. These are how People, Ideas & Objects Preliminary Specification, our user community and service providers are undertaking to solve the difficult issues of oil and gas. Please review our Production Rights to see how everyone can participate in making this new oil and gas industry happen. An industry where it will be less important who you know, but what you know and what you're capable of delivering, what the value proposition is that you’re offering?

People, Ideas & Objects have determined that these Production Rights are sold on the basis of our revenue. The value earned is in the differential and the leverage provided. We’ve identified that the target market for those that could participate are all of those that fall outside of the current producers bureaucratic clique. Outside of these points we have not decided on anything and would need to know what it is that others see as possible. As soon as we’re able to generate revenue the quicker we’ll begin these developments. Please contact me through the means that are provided below. 

Those interested in joining our user community are People, Ideas & Objects priority and focus. The Preliminary Specification, our user community and their service provider organizations provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations, everywhere and always. Setting the foundation for profitable North American energy independence, everywhere and always. In addition, our software organizes the Intellectual Property of the exploration and production processes owned by the engineers and geologists. Enabling them to monetize their IP for a new oil & gas industry to begin with a means to be dynamic, innovative and performance oriented. Providing a new investment opportunity for those who see a bright future in the industry. A place where their administrative, accounting, exploration and production can be handled for the 21st century. People, Ideas & Objects have joined GETTR and can be reached there. Anyone can contact me at 713-965-6720 in Houston or 587-735-2302 in Calgary, or email me here.