Military command, part III

I want to follow up quickly on my military command entry and concepts. The points that I want to establish today are:

• Allies = Other producers, or members of the joint operating committee, or service based organizations.
• Each army can be parsed into further classifications such as Navy, Marine, Army and Air Force.
• Each participant in the joint operating committee organizations may have several roles, several tasks and several "superiors" and / or underlings reporting to them from various organizations.

First up are allies. Many military commands expand beyond the scope of the current army. In WWII the entire allied forces were under the command of General Eisenhower. The English and Canadian militaries, although separate from the Americans, were engaged in similar exercises and were coordinated as one. This is the type of application that I think is needed to solve the current and prospective energy issues. Working for a company you may be seconded to work for several different joint operating committees that your company has an interest in. This military analogy is only a more formal method of recognizing the loosely coupled nature of the missions, tasks, physical resources, and personnel.

Second separate tasks or specialty roles are segregated between certain military disciplines. In this analogy the Navy, Airforce, Marines and Army are replaced by the Geological, Engineering, Administrative and Field disciplines. As with the individual disciplines the military chain of command remains in tact through the various disciplines. As an Army Captain would have superior rank to a Navy Private, the Senior Geologist would also have a recognized authority and superior rank over a junior Engineer.

Each worker within the oil and gas industry is therefore tasked in many different situations with different rank and roles. The producer that is his / her employer will have the opportunity and latitude to second each individual to work in any capacity and area that they are authorized in. This dynamic component being actively managed through the Genesys system identity management. Each worker in turn may have several different producers, which is almost a given, to be assigned tasks from.

Lastly I want to raise a point that dovetails nicely with what Susan Hockfield, MIT President and Professor of Neuroscience has stated. Noting that the situation in energy was in a "Perfect Storm" and I quote.

"President Susan Hockfield unveils MIT's grand-scale initiative to confront the urgent challenge of our time: clean, affordable energy to power the world. In much the same way that MIT played a decisive role in the Allied victory in World War II, she calls for the Institute to muster its formidable forces to speed a transformation of the global energy landscape."

Note her tie in to the level of effort equivalent to MIT's in WWII. I share the concern and strongly recommend everyone to watch the MIT video of Professor Hockfield to understand better our concerns.

The analogy to the military has unfortunate connotations. However, it is by far the best manner of layering a component of command and control over the joint operating committee. The systems that we develop here are best suited for these interactions. So much of what we discussed here would be transparent and seamless to the user.

Nonetheless I think it is generally agreed that the hierarchy that is now in full command and control is not the organizational structure that will marshal a solution to energies "perfect storm." After all they don't even believe there is a problem.

Technorati Tags: Genesys, Military Command, Innovation, Energy

Dr. Giovanni Dosi, Sources Part IV, F & G

Part F. Determinants and Patterns of Investment in Innovation: Toward a Sectoral Taxonomy.

Up until this point Dosi has laid some groundwork for future classification of business types of which he describes in four sectors:

• Supplier dominated sectors: "innovations are mainly process innovations, embodied in capital equipment and intermediate inputs and originated by firms whose principal activity is outside these sectors proper." (Agriculture, Printing, etc.) p.1148
  
• Specialized suppliers: "Innovative activities relate primarily to product innovations that enter most other sectors as capital inputs." (Mechanical and instrument engineering.) p. 1149
  
• Scale sensitive Sectors: "Innovation relate to both processes and products and production activities generally involve mastering complex systems." (Transport equip, electronic durables, food, glass and cement.) p. 1149
  
• Science based sectors: "Innovation is directly linked to new technological paradigms made possible by scientific advances: technological opportunity is very high, innovative activities are formalized in R & D labs." (Chemical industries, drug companies, bio-engineering.) p.1149
  

In my thesis I suggested that oil and gas industry was moving from the Supplier Dominated Sectors to the Science Base Sectors. That this change is due to the demands of finding and producing oil and gas in remote areas with higher risks and smaller reserves. An era where the engineering and geological effort is substantially higher then what had been experienced before. Dosi suggests this leads to new and better methods. Methods that require the capability of the firm to learn and keep up with the changes in the underlying sciences and other innovative producers.

I believe it is fairly evident in this era of high commodity prices that their will be a new basis of leadership in oil and gas. One where the science of geology and applied science of engineering dominate the organizational decision making and competitive capability. Moving from one sector to another may or may not have happened in other industries before. One thing for certain is, that it won't be easy.

Technorati Tags: Dosi, Science, Innovation, Energy

Another call to action?

After almost a week off I'm back and fully charged.

The call to action that I am referring to here to is an article in last Friday's Calgary Herald. The article states that the junior oil and gas producers and royalty trusts are having difficulty making money. Peter Knapp of Iradesso Communications states "Everybody thought it was going to be easy to make a lot of money and that just isn't the case". With natural gas prices down almost 50%, they are also finding their costs are high. They also clearly and unanimously feel that the gas price will rise after June.

So how is this a call to action? I have suggested a solution to this problem is to innovate and move with the science. Not that this hasn't or isn't being done, it is just that we have hit a critical period in which the sciences are changing quickly. The capital being generated from higher prices is a reallocation of the resources to fuel innovation. A profitable firm in the future will be able to collaborate with a greater population of all resources to determine the most effective ways and means of exploration and production.

This is the role and responsibility of the joint operating committee. And for the "business" end of the oil and gas business to continue to ignore the joint operating committee in its organizational structure and systems, the industry I suggest, will continue to fail in making money. A further failure will occur in that the industry will be unable to deliver the appropriate amount of oil and gas to the market.

By my count that's 10 calls to action.

Technorati Tags: Genesys, Call-to-action, Innovation, Energy

Military command, part II, why project management isn't the solution.

Project management fares poorly in comparison to the global scope of accomplishment of military command and control. In "Organization, the key" I noted the use of military command and control type structures as the replacement to the bureaucratic hierarchy. This military analogy and metaphor needs to be implemented within oil and gas in order to facilitate a method and a means of getting things accomplished. Since, as we have discussed, software defines the organizational constructs, this command styled implementation is an element of this Genesys systems, and specifically the technology will be built to superimpose the military command and control style organizational structure.

The implementation here is not dissimilar to the military metaphor, with "orders" being simply replaced in the "work order" system of Genesys. All tasks, equipment, human and other resources are managed through the system to provide a means for things to be accomplished.

This system will also be responsible to maintain the encryption, authentication and authority of each transaction. Since we are talking about the commercial elements of an oil and gas concern then "role" and "rank" also need to be implemented to provide a seamless manner that work should be accomplished in. I will write about role and rank in this series many times.

Project management is limited in its application as a means of operating a going concern. It therefore fundamentally violates its basic premise, that is it's temporary. Other problems in attempting to retrofit a project management structure to manage oil and gas assets include, diversity, depth and scope of communications.

Project Management teams may not have the diversity of resources necessary to effectively manage the assets. Consider for a moment how many people it takes to drill a well. From the point of view that if you include all the individuals who would be paid for their skills in drilling that well. I am talking about the billing clerk at the water trucking company to the chairman of the joint operating committee. Project management can not facilitate the scope and diversity of the 100's and possibly thousands of people that are involved in getting something done.

Another area where Project management falls apart is in its depth of resources. In oil and gas it is generally considered, as it is with anything complex, that the quality of the well drilled will be as good as the least experienced individual on the platform. Mistakes happen and the reduction of mistakes takes on a greater role then risk management. The active participation in activities can also broaden the scope of the problem solving capability. It is my fundamental belief that the more eyeballs that review the situation the better. The virtual environment can marshal more resources in this fashion then the physical world can.

The last deficiency of project management that I will point out today is that it is generally limited to human resources. We have discussed on this blog the types of communication being asynchronous and synchronous. We have also discussed the four methods of those communications being person to person, person to process, process to person and process to process. We can not limit the scope of the organizational construct of the joint operating committee to just human resources. The physical assets and capabilities of vendors, suppliers, or anyone and anything involved in oil and gas must be managed with the utmost efficiency. If we preclude certain resources at this point then we preclude the holistic solution this system will be. And if we preclude the methods and modes of communication (asynchronous vs. synchronous and Person to person etc.) then we will certainly have limited the potential for this new way of working.

Technorati Tags: Genesys, Military Command

Top 10 management excuses from Petro Canada.

Since I have predicted that the second quarter of 2006 will not be a very good quarter. I thought I'd come up with some excuses for the management of Petro Canada to use for their poor performance.

• Number 10, My Porsche was delivered this past quarter.
• Number 9, It really is just about us.
• Number 8, Production was down, it's the oil business.
• Number 7, You won't believe the costs to do business these days.
• Number 6, Just be thankful oil isn't trading at $18.
• Number 5, Precisely, what do you expect?
• Number 4, Selling Syria may have been a mistake, the clerk responsible has been fired.
• Number 3, Employee costs were so high!
• Number 2, We were trying very hard to buy Canada Southern Petroleum so we could become an explorer.
• and the Number 1 reason we lost money this quarter,
  
• We got ours, too bad about yours.

Technorati Tags: Accountability, Bureaucracy, Leadership, Petro-Canada

A bad attitude towards locals.

Reading yesterday's Calgary Herald I see a trend that continues to shape the oil and gas industry in Canada, in a negative way. I mentioned in an earlier post the response I received regarding the research that was the basis of this blog's copyright. How I was promptly shown the street, informed that the industry only conducted research with large firms like Cambridge Energy Research Associates (CERA) and that CERA was ultimately hired to conduct the research based on my intellectual property. Thankfully I was able to publish the results of my research before Cambridge, and as a result, earned the full rights to the copyright and associated intellectual property.

Is it a lack of confidence or disbelief in our own capabilities that causes an industry to look outside for its own research and decision making. What I found disturbing is that it is not just the industry but also the Alberta Government. They hired a Texas based firm to review the prospects of building a super refinery in the province for around $10 billion. The results of the Texas based consulting firm was that Alberta did not have the capability to undertake such a task.

I find this rather insulting. That we have the industry "leadership" deferring to our competitors to determine the activities in this province is bad enough. To have the Alberta Government doing the same is regrettable. So forget about courage and leadership, just defer the decision to those that may have vested interests in building their own super refineries, and have them make the decision for you. At least you will have covered you ass.

This is the reason that this project is now a global operation. Little if anything can be expected from these "local business leaders". Which makes this whole situation kind of ironic, instead of working in developing things together, lets just defer to strangers why we shouldn't do anything.

Technorati Tags: Genesys, Petro-Canada, Innovation, Energy

Oh how the mighty have fallen.

Petro Canada that is. Seems they have attracted some other bidders in their hostile offer for Canada Southern Petroleum Ltd. Greg Noval of Canadian Superior Energy is making a competing bid and it will be interesting to see if Petro Canada has the gumption to make a revised offer.

Recall that this process was so that Petro Canada was able to call themselves an explorer, however, I am afraid they may soon be better known for the company they keep.

Technorati Tags: Genesys, Petro-Canada, Innovation, Energy

I have seen the future,

Google in general, and Google Spreadsheet in particular.

I was invited to Google Spreadsheets today, if you do not have a Google account, you need to get one and start using their services.

Brilliant implementation.

Technorati Tags: Google, Innovation

I found this quote on Good Morning Silicon Valley.

It speaks to the one identifiable risk I think exists in blogging.

"The problem I am concerned with here is not the Wikipedia in itself. It's been criticized quite a lot, especially in the last year, but the Wikipedia is just one experiment that still has room to change and grow. ... No, the problem is in the way the Wikipedia has come to be regarded and used; how it's been elevated to such importance so quickly. And that is part of the larger pattern of the appeal of a new online collectivism that is nothing less than a resurgence of the idea that the collective is all-wise, that it is desirable to have influence concentrated in a bottleneck that can channel the collective with the most verity and force. This is different from representative democracy, or meritocracy. This idea has had dreadful consequences when thrust upon us from the extreme Right or the extreme Left in various historical periods. The fact that it's now being re-introduced today by prominent technologists and futurists, people who in many cases I know and like, doesn't make it any less dangerous."

-- Jaron Lanier sees hazards in the hive mind

I have felt that in the collaborative environment the drive for consensus can overcome all obstacles, even the truth. And although I am guilty of applying this in my criticisms of Petro Canada I am basing my attacks on the theories of Dr. Thomas C. Schelling's works and most specifically "The Strategy of Conflict" for which he received the Nobel Prize for in 2005.

I can assure you as the copyright owner I am aware of the danger that the Mr. Lanier speaks of. I can also ensure those involved in these developments that I will exorcise this from of discipline in this blog and software development project if the problem should develop.

Technorati Tags: Accountability, Conflict, Energy, Genesys, Intelectual-Property, Petro-Canada, Thesis

Java, the fourth component of the Genesys' technical vision.

Over the past couple of weeks I've identified elements of the Genesys' technical vision, initially commented on here. The technical vision provides a paradigm for the manner and type of application that operates in the Web 2.0 environment, and specifically in the oil and gas industry. Today, I am going to talk about Java, the fourth component of the Genesys technical vision, and then later in the next few weeks I will tie in why I believe the technical vision is so important in oil and gas.

Highlighting some of these features with a number of separate postings. I am attempting to show the different elements and there designed purpose in the Genesys application. I'll briefly note the three other components of the vision IPv6, Wireless and Asynchronous Process Management, and then focus on the fourth, Java. To aggregate stories I have written around this technical vision, just select the tag "technical vision" noted in the Technorati tags.

Some quick notes about the other three.Asynchronous Process Management (APM), or, how life rarely goes as planned. Asynchronous communication are designed to accomodate out of sequence events and deal with them as they occur. Processes that deviate from the norm can therefore be handled particularly well with Java's exception handling capabilities.

IPv6 eliminates the client server paradigm. With static addressing that enables anything and everything to be controllable, monitorable and any other ...able that you can think of.

Wireless and the ability to have a network in an instant. Where speed and "last mile" issues are eliminated through the use of the wireless Internet.

Java, number four on the technical vision list. Where to begin. As I indicated earlier, registration for the Java Introductory course is encouraged. Everyone needs to understand the concepts that have developed within the language. The ability to understand and to appreciate many of the future technologies and capabilities is dependent on these fundamental Java principles. Writting code is always fun as well.

Essentially what the technical vision points to is the elimination of the client server model. A model that is the foundation of the Internet today. Replacing this with the ability to manage and control any and all electronic devices. So what the fourth element of the Genesys technical vision, Java, provides is a "programming language" to deal with this new prospective world. And when we think of Java it is best to frame it in the context of a "programming environment".

Several of the critical components of Java are well known. The ability to write once and deploy anywhere is largely in place. What may not be fully appreciated is Java's strict typing, polymorphism, inheritance and object implemenation. Each of these links are to Dick Baldwin's online tutorials on how these components can be used to make such a difference. I highly recommend reviewing his site. Dick Baldwin is one of the better websites providing quality Java development education.

At this point in time the introduction of these four elements of Java are all that need to be introduced. What I want to achieve in this entry is to bring together why Java, wireless, IPv6 and Asynchronous Process Management are so very important in the very near future.

You can imagine a world where everything electronic is reporting, being monitored and controlled, and in a wireless environment how things don't need to get confused. Sudden system failure due to unseen events are a common theme in Hollywood and systems in general. This problem is what Java set out to solve by typing the language so strongly. I see Java as providing the ability to make this environment where any and all devices are operating, predictable. There is no area for ambiguity in many of these systems. How do you know you used the correct encryption algorithm to decode the production volume, from the right well? Java typing can differentiate anything and everything and that is why it is included in this technical vision. No other language is as strict in its interpretation of typing as Java.

Lastly I will note the value of inheritance in Java. Inheritance is where the ability to build off many other excellent frameworks and works of others. An excellent example of this is the GlassFish server Genesys is using as its base, or Java Enterprise server (v. 5.0). Testing and development was done from many different perspectives, and although it has little to do with oil and gas or accounting, it covers off many of the basic services that must be provided first. Once we write to a specification and achieve certification, then the evolution of the application will be managed without any glitches.

This is why Java is so important as a future programming environment. This technical vision exists today and only needs to be implemented in order for it be operational. Since Genesys is implementing this vision, only IPv6 needs to be deployed in all markets, something that is scheduled to occur soon, and certainly much sooner then this application will be completed by. Now that I have completed the high level review I will move on to more oil and gas and accounting specific applications of the Genesys technical vision. I encourage any and all readers to comment on this important aspect of what we are doing here, I look forward to your comments.

Technorati Tags: Genesys, Glass-Fish, IPv6, Java, Sun, Technical, Technical Vision