Showing posts with label Synallagi. Show all posts
Showing posts with label Synallagi. Show all posts

Tuesday, August 11, 2026

Podcast # 38 - 21st Century Marketplace Vision Service Provider - Section 2

 I am pleased to return to the publication of our podcast series.

This podcast accompanies Section 2 of our 21st Century Marketplace Vision for Oil & Gas – Part IV: Service Providers Vision, published on August 6, 2026. In this paper we continue establishing Synallagi — A New Discipline by defining the complementary roles of the Joint Operating Committee, Markets, and Producer firms. Together, these Organizational Constructs establish a new framework for how the North American oil & gas industry is organized, governed, and operated.

Within that framework, our user community and their service provider organizations become the means by which Information Technology—and, critically, Artificial Intelligence—is deployed to execute the industry's transactional activities. In our previous paper we examined the nature of oil & gas data and the standard it must achieve before Artificial Intelligence can be responsibly employed. In an Artificial Intelligence environment, anything less than pristine data is inconsistent with accountability, governance, and auditability. It would therefore be irresponsible to proceed without continuing the development of the People, Ideas & Objects Synallagi data model to meet those requirements.

Our discussion of Markets extends well beyond commercial transactions. It presents a comprehensive restructuring of the industry designed to improve its performance and profitability while allowing engineers and geologists to concentrate on their distinct competitive advantages. Administrative and accounting functions similarly migrate toward specialized market organizations, allowing service providers to focus on delivering the highest quality professional services to Producer firms and the Joint Operating Committee. This specialization, together with hyperspecialization and the division of labor—one of Synallagi nine Organizational Constructs—creates the conditions necessary to improve productivity, quality, innovation, organizational performance and profitability throughout the industry.

Google's Gemini Notebook has proven to be a remarkably capable tool for producing podcasts from substantial bodies of written material. Like any powerful technology, however, it requires careful guidance. Producing an effective podcast involves multiple iterations, editing, and refinement before achieving the desired result. Given the complexity of the concepts discussed in this paper, I believe the podcast communicates the principal ideas well. Nevertheless, the paper itself remains the authoritative source for the complete vision.

One recurring limitation deserves mention. At times the presenters make observations that do not originate from the paper itself. These appear to be Artificial Intelligence extrapolations drawn from unrelated sources and assumptions. While occasionally entertaining, they often fail to withstand even casual scrutiny. Listeners should recognize these comments as artifacts of the podcast generation process rather than elements of the published paper.

One concept introduced throughout this paper is Organizational Latency. We believe this will become one of the defining performance measures of twenty-first century organizations. Every organization possesses knowledge, but competitive advantage increasingly belongs to those capable of transforming that knowledge into coordinated action more quickly than their competitors. Organizational Latency is therefore not simply a measure of speed; it measures the effectiveness with which an organization converts information into profitable decisions. Reducing Organizational Latency strengthens every other dimension of organizational performance. Throughout our publications we have identified speed and complexity as defining characteristics of the modern Producer firm, and Synallagi has been architected specifically to address both.

The continued development of Synallagi also reflects an important transition. Its architecture is becoming increasingly sophisticated and detailed because responsibility for its future is gradually moving from a single author to our user community. This specification represents only a small fraction of what that community will ultimately contribute. The North American oil & gas industry is simply too complex for any individual to comprehensively define. It requires the collective knowledge and experience of thousands of professionals working together toward a common objective.

That collective effort, however, requires something more fundamental than technology. It requires a coherent vision. Establishing that vision is the purpose of Synallagi and the purpose of A New Discipline. Some may argue that the architecture has already become too complex, and they would likely find broad support among today's Producer firms. The more important question, however, is not whether the industry is complex. It is. The real question is how existing organizations intend to compete in a world where complexity continues to increase and Organizational Latency increasingly determines competitive success.

Monday, April 27, 2026

When There Is Money on the Table, the Fight Begins

 People, Ideas & Objects will publish a short series of posts over the next few weeks addressing producer Annual Reports, First Quarter 2026 results, and Annual Meetings. These events provide a useful point of reference for an issue that has remained largely unspoken for decades. It has not been addressed by those with the responsibility, accountability, and authority to resolve it. The consequence is now visible in the market as a serious and developing crisis.

Faith, trust, and confidence in producer officers and directors have continued to erode since 2015. In our April 7, 2025 paper, Oil & Gas Arbitrage: The Market Finds a Way, People, Ideas & Objects described a method by which investors could participate directly in oil & gas. The paper noted that higher commodity prices would not only increase the value of those investments, but would also expand the volume of commercial reserves classified as proven. On that basis, strategic investment in oil & gas becomes especially attractive if commodity prices rise.


There also appears to be a material increase in institutional ownership of oil & gas producers, with some reports placing ownership above ninety percent. Producer officers and directors may therefore face a more difficult Annual Meeting season if oil & gas prices move higher. Rising prices create value. Value attracts attention. And when there is money on the table, the fight begins. Few parties object when there is nothing left to contest. People, Ideas & Objects being one of the few exceptions.


The current gas-to-oil price ratio of 35.2:1 remains in unacceptable territory, as it has since the beginning of commercial shale production. On that basis, People, Ideas & Objects estimates that natural gas losses could potentially be running at $52.5 billion per month. These losses are not inevitable. They are the product of decisions, structures, and the continued absence of an effective operating system. Synallagi was designed to address precisely these issues.


People, Ideas & Objects has repeatedly identified the structural causes. One example is the continued dumping of large volumes of highly differentiated, and at times negatively priced, Permian natural gas into Henry Hub, the continental reference point for natural gas pricing. This is not a minor technical issue. It reflects a disqualifying leadership failure. It also reflects an apparent indifference by producer officers and directors to the value being destroyed.


Producer officers and directors have had fourteen years to consider Synallagi as a remedy for the industry’s fundamental problems. Over that period, the cumulative natural gas revenue loss now exceeds $5.0 trillion. Objectively evaluated, those funds could have supported the service industry, enhanced dividends, strengthened competitive organizations and people, expanded liquefied natural gas export capacity, and financed pipelines or other critical infrastructure.


Instead, the standard response has been excuses, blame, and the manufacture of viable scapegoats. Many producers have gone silent once their prior statements proved unreliable. Inaction remains the preferred strategy. “Muddle through” continues to serve as the operating doctrine.


Yet something appears to be changing. The market is beginning to see the issue more clearly. Institutional ownership, commodity price movement, Annual Meetings, and sustained underperformance are converging. Producer officers and directors may soon discover that their period of silence, deflection, and unaccountable control is nearing its end.