Pooling of Technical Resources in the Partnership Accounting Module

A few weeks have passed and its time to revisit some element of the Preliminary Specification to keep it fresh in everyone’s mind. Staying within the Partnership Accounting module and continuing on with the theme that we have been discussing regarding the technical resources of a producer firm. Today I want to discuss the pooling and charging of these technical resources to the Joint Operating Committee.

Recently we discussed the need for the members of the Joint Operating Committee to pool the earth science and engineering resources to make up the capabilities necessary for the property. This will be done due to the ability of each and every oil and gas producer to build the capabilities within their own producer firm. This will soon create excessive demand on the earth science and engineering professions that will extend beyond the existing industry resource base. With shortages in the numbers of earth scientists and engineers in the mid to long term. Alternative methods of organization, specialization and the division of labor are the means in which People, Ideas & Objects have chosen to deal with this issue.

When each producer is building the internal capabilities that are needed for their operated properties. They are required to build for every contingency for all of their properties. In doing so they are building capabilities that are unused and unusable when looked at from the industry perspective. These unused and unusable resources are trapped in the producer firm and are otherwise irretrievable. This current method will also discover difficulties as the underlying sciences continue to expand and demand that further specialization of the profession is necessary. Any further specialization, without the ability to reorganize these resources will cause the scope of what a producer needs to have on staff to expand further. Making the financial viability of the producer questionable at any production profile.

What People, Ideas & Objects Research & Capabilities and Knowledge & Learning module enable the producer firm to do is to specialize in their earth science and engineering capabilities. It will be in this way that the producer firm is able reduce the global scope of earth science and engineering capabilities within their firm. And take on a highly specialized capability. Something that the industry demands of the dynamic, innovative and profitable producer of the 21st century. Producers throughout the industry will be doing the same in terms of pursuing their unique specializations and capabilities.

As a result, the abilities and capabilities of the producers that make up the Joint Operating Committee will be diverse and quite probable to include what is required in order to cover off the global scope of the properties needs. A pooling of these capabilities will be enabled through the Knowledge & Learning module as its prime functionality. Additional capabilities, if required, can be made up from the marketplace of other earth science and engineering providers or producers.

Within the People, Ideas & Objects Preliminary Specification it is assumed that the earth science and engineering resources of the firm are not a cost centre but a source of revenue. Whether that revenue is derived as a result of direct charges to the Joint Operating Committee or to, lets call them customer Joint Operating Committees. The dynamic, innovative and profitable oil and gas producer has two separate and distinct revenue streams and lines of business within the lightweight footprint provided through the decentralized production model. This enables the producer firm to develop their earth science and engineering capabilities somewhat independently of their production profile.

The issue that is being resolved through the use of the Preliminary Specification here is the resource limitation of these critical professions. Using organizational methods, specialization and the division of labor are the appropriate means in which to approach the issue. The constraints of the Joint Operating Committee becomes an opportunity as it is the culture of the industry and therefore we are able to release the unused and unusable resources for use into the marketplace. Capturing this surplus capacity and employing it within the producer firms. Creating a second line of business within the producer firm helps to offset the costs of developing these highly specialized resources. Issues and opportunities that the dynamic, innovative and profitable oil and gas producer will need to address in the 21st century.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

What the Future Holds in Oil and Gas

Our primary focus at People, Ideas & Objects is the development of the user community. We have prepared a vision of how that organization will operate. And set out its objective of providing the oil and gas producer with the most profitable means of oil and gas operations. We are undertaking the user communities development in order to remove and replace the current oil and gas industries bureaucracy from their comfortable positions. Providing the oil and gas industry with a dynamic, innovative and profitable capability to deal with the issues and opportunities it faces on a go forward basis.

To date we have established the vision and objectives of the user community. We have also set out 28 leadership positions that make up a leadership team. These positions are being actively sought from those within the industry to begin the process of building an alternative means of organization for the oil and gas industry. It will be these individuals who will invest their time and energy over the next few years in developing the user community to convince the oil and gas investors to choose the user community and People, Ideas & Object as the manner in which to administer the industry. The leadership team is comprised of the Board of Directors, the C class executives and the Product Owners for the Preliminary Specification.

The motivation for people to invest their time and energy in the user community is substantial. Within the user communities vision is the capability of the community to manage the business model of the oil and gas industry. The current business models of the Preliminary Specification include the Joint Operating Committee and the decentralized production model. It is within the user community that they are the point of contact with respect to any changes that are needed or desired in the business model. It is through control of these business models that the user community exerts significant power within the industry. There are substantial business interests that will be generated from the leadership teams participation in the user community. Derived from the user community are the service providers whom the leadership team would potentially be founding members of. A new sub-industry with revenues in the tens of billions of dollars.

One thing we do know is the bureaucracy are not conceding the marketspace to us. They recognize the power and authority that they have within the industry and are not about to give up on it. However, as opposed to conduct themselves in a constructive manner they choose to do nothing in the face of natural gas prices that provide no one with any earnings potential. After several years of overproduction they continue with a flawed strategy that encourages no discussion or recognition that its even an issue. Their franchise is secure and there is little for them to be concerned about. Recently with our claims of providing over $705 billion in opportunity costs, they have begun to address the problem and begun to copy our ideas. However this is only for appearance sake, as we have documented here on this blog their attempts will be fruitless and are only designed to get them past annual report season with a “plan” to deal with the problem.

The question people should be asking themselves is where does the future of the oil and gas industry reside. Is it a dynamic, innovative and profitable industry where Information Technology plays a key role such as with the Preliminary Specification and the user community. And where does the future of the bureaucracy belong. Is it the dominant method of organization that “muddles along” through the issues and opportunities of the day. Hoping and praying for another cold winter as the best strategy for the industry. We've been endowed with unbelievable reserves of natural gas. Are we destined to produce them forever at a loss. Or can we make the changes necessary to implement People, Ideas & Objects and the user community to make the industry a price maker and turn it into the most profitable means of oil and gas operations.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

No Posting Today

In recognition of the Canadian Victoria Day holiday.

The Dynamic, Innovative and Profitable Producer Part IV

One of the areas of the dynamic, innovative and profitable oil and gas producers competitive advantage is its land and asset base. It is also part of the producer firms lighter footprint that the land and legal resources are part of the firm. It would be inappropriate to leave these resources outside of the domain of the producer considering they are part of its competitive advantage. Within the Preliminary Specification the producer relies on the Petroleum Lease Marketplace module to develop and manage their land and asset base. It is this module that the producer uses to build their land and asset base and apply their competitive advantage. Just as in yesterday’s post, the Research & Capabilities and Knowledge & Learning modules were used to apply the firms earth science and engineering competitive advantages.

The Petroleum Lease Marketplace module sets the focus of the land and legal resources on building the firms assets. Using the Joint Operating Committee in the manner that we are requires that we look at these competitive advantages from a different perspective. Every firm has systems for their land and to a lesser extent their capabilities development and deployment. What is different in the People, Ideas & Objects Preliminary Specification, and demands that we begin these developments anew, is that we are using the Joint Operating Committee as the key organizational construct of the dynamic, innovative and profitable oil and gas producer. There is a substantial difference in these systems over ones that use the corporate model as their organizational construct. There are also technical differences as the Preliminary Specification is hosted as a cloud computing software offering.

If we look upon this development as an opportunity to develop systems that are able to provide the industry with the elements that have been missing in the other systems. If we focus on the Joint Operating Committee and its alignment of the compliance and governance frameworks of the current hierarchy to the Joint Operating Committees legal, financial, operational decision making, cultural, communication, innovation and strategic frameworks. We can then begin to develop the kind of software that people know that is possible, if only. Well now is the opportunity and People, Ideas & Objects, the user community and the service providers are the means in which to achieve that which is possible.

The producers value is represented in the tangible reserves associated with their properties. How a producer develops those reserves is reflected in the interactions that occur during the life of a mineral lease. Providing the producer with the effective means to manage their leases is the domain of the Petroleum Lease Marketplace. A marketplace module that operates in the lease marketplace where people are able to interact and conduct their business. The Petroleum Lease Marketplace module uses the OpenWonderland interface to replicate virtually the lease marketplaces that exist today. There producers are able to post, bid, agree, trade, buy or sell mineral leases. It is this type of interface that will enhance the ability of the producer to build their firm.

Friending someone on a social network does nothing from a commercial point of view. There is no commercial value generated and it is questionable if any value is destroyed. Participation in a virtual representation of a marketplace has as its core a commercial purpose behind the interaction. It is to buy, sell, trade or otherwise engage with someone for the purpose of attaining short or long term value. Marketplaces have always existed. Having a virtual representation of a marketplace is what the People, Ideas & Objects Preliminary Specification provides in order for the user to engage in the marketplace of mineral leases. Engaging in a manner that is more efficient than having to have the physical requirements of participation that the traditional marketplace demands. That is the value of the Petroleum Lease Marketplace.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

The Dynamic, Innovative and Profitable Producer Part III

Adopting the lightweight footprint that is available with the Preliminary Specification provides the dynamic, innovative and profitable producer with many attributes over what are available today. The dynamic nature of the producer will be one of these attributes. Focused on their key competitive advantages of their earth science and engineering capabilities, their land and asset base. As opportunities and issues arise they will have the flexibility to approach these with new alternatives as a result of this footprint, its lower cost and its dynamic nature. It will also afford more opportunities than the classic bureaucratic style that is in use today.

Within the Preliminary Specification there are the Research & Capabilities module for developing capabilities, and the Knowledge & Learning module for deploying capabilities. It is within the Research & Capabilities module that the process of innovation has been captured and codified in the various interfaces. If a new technology were to look promising in terms of its ability to expand the reserves or deliverability of the firm. It would be in the Research & Capabilities module that the producer would undertake the research necessary to develop the capabilities within the producer firm to build that value. It is where “knowledge begets capabilities, and capabilities beget action.” And where capabilities have been quantified as the “knowledge, skills, experience and ideas” of the producer firm.

Concentrating the energies of the producer firms competitive advantages of its earth science and engineering capabilities in the development of new capabilities based on the understanding of those resources and the activities within the industry is the focus that a producer wants to achieve. In a dynamic, innovative and profitable oil and gas industry things will happen quickly with little consideration for the laggard firm. Oil and gas success will be based on its scientific principles, if it isn’t already. The days when Lawyers could exorcise value through good deals, or financial people could structure good returns are gone. It is the principles of science that will lead the dynamic, innovative and profitable producer for the foreseeable future. The ability to focus on the development of the producers capabilities in the manner that is discussed here will be a critical part of a producers competitive advantage.

Consistent with that ability to focus on the development of the capabilities the dynamic producer will also need systems that enable them to deploy those capabilities in a focused and dynamic manner. And that is where the Knowledge & Learning module comes in to play. First we need to realize that the ability to maintain a focus on all that is happening within the industry will be beyond the capabilities of the majority of the oil and gas producers. The need to specialize in specific domains of the engineering and earth science professions will be a necessity due to the financial constraints of attempting to pursue everything. As we mentioned yesterday the dynamic, innovative and profitable producer will share their capabilities with their Joint Venture Partners who are specializing in their capabilities. It will be a pooling of those capabilities that make up the projects overall requirements. Additional capabilities will be supplied from the marketplace, if required.

It is the Knowledge & Learning module that presents the capabilities of the partners that are involved within the Joint Operating Committee. Each producer tags their capabilities for certain criteria and specific Joint Operating Committees. While in the Knowledge & Learning module for that Joint Operating Committee the user would be presented with the capabilities of all of the participants who are working interest owners in that Joint Operating Committee. It is in that way that the “knowledge begets capabilities, and capabilities beget action” and the “knowledge, skills, experience and ideas” of the people associated with the Joint Operating Committee are able to be employed in a Dynamic, Innovative and Profitable manner.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

The Dynamic, Innovative and Profitable Producer Part II

Continuing on with our exploration of what the prototypical producing firm will appear like as a result of implementing the Preliminary Specification, the user community and its service providers. Without having to host the administrative and accounting staff. Without having to deliberately and actively go about the development of the necessary capabilities within your organization. The prototypical oil and gas producer will be able to offload, not just physically, but also mentally and emotionally the development of these internal capabilities. What the Preliminary Specification does is move the producer from a reliance on their administrative and accounting capabilities, to a reliance on the industries administrative and accounting capabilities.

The burden for the development of the industries administrative and accounting capabilities falls on the user community and the service providers themselves. They will be the ones that are incurring the physical, mental and emotional effort on behalf of all of their industry clients. When the time comes to enhance the tax capabilities of the oil and gas industry due to some change in legislation it will be the individual service providers that augment their organizations with the requisite resources to enable them to meet the requirements on behalf of all the producers in a timely fashion. The producers will be busy pushing the sciences.

It is the division of labor that enables the producer firm to focus on their competitive advantages of their earth science and engineering capabilities, and their land and asset base. It is the same division of labor that has the service providers and user community focused on their competitive advantages of automation, specialization, division of labor and reduction of the bureaucracy. Currently the producer firm enjoys none of the competitive advantages associated with their administrative and accounting capabilities. They are a tax on their speed, their innovativeness and most importantly their profitability. Each producer must maintain x capabilities in order to function as a producer. This level of compliance and governance is costing the producer a large share of the profits and there are no opportunities for cost control or cost sharing among producers. Use of the service providers moves the capabilities to the industry, enables the service providers to control the costs and most importantly shares the cost and resources among the producers. Key to the cost sharing will be the reduction in costs from the key competitive advantages of automation, specialization and the division of labor. The fact that the bureaucracy will not be paid for is a triple bonus.

This lightweight form of organization gives the producer distinct advantages. People, Ideas & Objects state that the Joint Operating Committee is the key organizational construct of the oil and gas industry. It is the legal, financial, operational decision making, cultural, communication, innovation and strategic frameworks. By moving the compliance and governance framework of the hierarchy into alignment with the seven frameworks of the Joint Operating Committee we attain a speed, innovativeness, accountability and profitability in our producer organization. It is these attributes that a dynamic, innovative and profitable producer needs in the 21st century.

What is the bureaucracy offering you today. Exactly what was on offer during the 1960’s. The fact of the matter is organizations don't change and the current bureaucracy is proof of that. Although they have taken elements of our ideas and used them to make them sound like they offering more than a hope and a prayer for a cold winter, as a strategy. Its a false hope. Organizations don't change, but people do. And that is why we appeal to the individuals in the oil and gas industry. The investors who are fed up with the earnings performance. The people who are tired of the bureaucratic ways of stuffing another ream of paper in the printer. It is the individual decisions of those that will join us in the next few years that will offer an alternative means of organization to the oil and gas industry. And then the investors can choose who they want, the bureaucracy or People, Ideas & Objects, the user community and the service providers to manage their assets.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

The Dynamic, Innovative and Profitable Producer

One topic that we haven't spent too much time on is the effect that the Preliminary Specification, the user community and the service providers will have on the producer firm itself. We have noted that the producer will have a smaller footprint in terms of its size. With only the C class executives, the earth science and engineering resources, the land and legal and some support staff. However we haven't discussed the implication beyond the footprint size of the producer firm. Specifically in terms of how they will operate in this new environment as a result of the changes that we are discussing in the Preliminary Specification.

First of all the producer firm will be more focused on its competitive advantages of its earth science and engineering capabilities, and its land and asset base. Those are the only remaining resources within their domain that are of interest to the producer. And here specialization and the division of labor is at work to enhance the producers capabilities to focus on their specialized attributes of the sciences. This is done through the Preliminary Specifications ability to mitigate the resource restrictions in the earth science and engineering disciplines that are affecting those professions in the mid to long term. By each producer firm specializing within the sciences; then they are able to share these specialized capabilities among their Joint Venture Partners and pool their resources to achieve the necessary capabilities to meet the demands of the projects.

Additionally new engineering and earth science based service providers will need to be employed to provide some of the basic services that are currently handled within the producer firms. This offloading of lower level tasks will be as a result of a reorganization based on specialization and the division of labor across the industry that seeks to increase the output from the limited resource base. A new organizational method is the only way in which to achieve the mid to long term demand requirements of the professions. Having each producer firm build individual silo’d capabilities that cover off their domain of responsibilities will soon bankrupt each producer. Specialization could be used to correct this, however, specialization without reorganization will cause further problems. A bankruptcy will occur as the scope of the specialization without reorganization within the professions would become so broad as the requirements would exceed the financial capabilities of one firm.

Moving back to the administration and accounting of the producer. These will be done by the service providers that we have been talking about. The service providers that are derivative of our user community. These people will be located within their own firms away from the producer firm and will process the producers documents remotely. Much as the administration and accounting is remotely conducted today. Earning a service fee based on the task and transfer network. Denoting that only when activity occurs within the network will their be a service providers billing generated to the producer. Automation, specialization and the division of labor are the key competitive advantages that the service providers are able to provide the producer firm. And we should add the elimination of the bureaucracy to that list too.

This lighter weight of a producer firm will be much easier to manage for the production profile of the firm. Based on the capabilities of the firm, they may be able to scale up or down based on the commodity prices, or depending on their earth science and engineering capabilities. The administrative and accounting capabilities are industry based capabilities and are available to them on a service fee basis. Their production profile will determine the amount of their G&A costs. If they should double or triple their production profile their administrative and accounting capabilities would immediately be capable of dealing with the new properties or acquisition. And if the producer were to scale back production, the G&A costs would scale back in line with the production profile. This is the nature of the revised industry makeup based on the decentralized production model of the Preliminary Specification and the service providers.

The key focus is what are you capable of in terms of your earth science and engineering capabilities. Both in terms of the scientific capabilities and in terms of your production profile. Those are the two guiding objectives of the producer firm in terms of what they need to concern themselves in managing their organization. The issues of where to get a new tax accountant are today’s problems with the bureaucracy, and I'm suggesting we leave those issues behind by adopting the Preliminary Specification.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

The Value in Technology

I have spoken many times here on this blog about the maturation of the Information Technologies that we are using at People, Ideas & Objects. It is that maturity of the technology that enables us to undertake the large scope and scale of our project. And many of the technologies and companies that appear to be generating a lot of interest in the capital markets are focused around the development of social networks and big data. These two areas are calling into question whether or not the technological industry is getting itself into another bubble where valuations and perceptions of value are getting out of sync with the real opportunities. These are my thoughts in terms of what I see.

I think the real value in technology is in the application of Information Technologies infrastructure to the business model of an industry. Much in the way we are doing it here in People, Ideas & Objects, the user community and service providers. This has been done in other industries and will happen in every industry as time passes. This trend, known more or less as disintermediation is the updating of the business model to include the Internet and remove the bureaucracy. Both are good things and provide value for the industry for all concerned. This is where the value in the technology business resides. It is in the “old” technology companies that provide the mature Information Technologies that will see their involvement in this business. The Oracle’s, the IBM’s, Cisco’s, and Intel’s.

In terms of the social networks they are probably here to stay. Some like Twitter and LinkedIn have been able to establish themselves in the business arena. And therefore will be able to build value outside of the “social” space. As for the rest, as it was in the 1950’s and 1960’s to show home movies as a fad, companies like FaceBook may be wholly dependent on a fad of exchanging useless bits of information with other people. Professor Herbert Simon coined the phrase “A wealth of information creates a poverty of attention.” FaceBook may want to adopt the byline “A wealth of FaceBook friends creates a poverty of friendship.” More innovation comes from FaceBook everyday and that keeps the masses interested. At some point there will need to be some point to the exercise and I think that day is coming soon.

If someone approaches you with a product that is in the “Big Data” field, run. Like Y2K they both have three syllables. I don't think thats a coincidence. There is something about naming conventions and three syllable product names are code for those in the know, to stay away. If anyone finds a bit of information that provides value for a business from “Big Data” then I will be the first to be surprised. In the Preliminary Specification there are the Performance Evaluation and the Statistics & Analytics modules to apply analytical thinking to the data set in a Joint Operating Committee or a producer firm. This is not “Big Data,” this is only the practical application of the tools to the data streams that have always existed in oil and gas. Don't let anyone sell you on the concept of “Big Data” becoming a force for generating value in the oil and gas industry. Its not going to happen and the need to spend any money on this initiative is approximately equivalent to what you should have spent on Y2K, nothing.

So that is how I see the Information Technology business. The real money is in the traditional industries that will use the mature technologies in new business models that disintermediate the bureaucracy. And the real money will be made in the area of higher profitability in these traditional businesses. The old school technology companies will come out alright as well. Just don't look for too much excitement from your investments in them.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here.

Motivating the User Community Part II

Our discussion has been focused on the motivation that we can provide to those that may be interested in participating in the user community. And particularly those that might qualify for one of the 28 leadership positions that we are looking to fill in this the first phase of developing the user community. Yesterday we spoke of the monetary component of this motivation from the investor, user community and service provider point of view. Today we want to discuss the power and influence that the user community and service providers will have in the oil and gas industry. And how these intangibles are a motivating force for those that wish to participate in this project.

Right now the bureaucracy holds significant influence in the oil and gas industry. Things are done the way they are done due to the fact that the bureaucracy is the only manner in which they can be done. What choice does anyone have. Therefore this provides the bureaucracy with an inordinate position in terms of how the industry will be managed. We see this in the approach to natural gas prices. The industry is a price taker with no discussion on how to deal with the abundance of natural gas reserves from shale. The bureaucracy says take it or leave it, that is the choice in terms of management of the industry. There is also no influencing the way it is done, and there are no opportunities or mechanisms for change. This “muddle along” strategy has been ingrained in the mindset of the industry and has become the standard as to how issues are dealt with. This is the power that the bureaucracy currently holds in the oil and gas industry today.

If People, Ideas & Objects, the user community and the service providers were to remove and replace the bureaucracy we would essentially hold this same power in place of the bureaucracy. It is the administrative and accounting authority and responsibility of the industry that has the ability to enable and constrain its actions. Without the bureaucracy, our offering would fill the void of any power vacuum. However, things would be different. People, Ideas & Objects are structured through its Revenue Model to be oriented to change. Without change there would be no revenues flowing through People, Ideas & Objects. Without revenues through People, Ideas & Objects there would be no revenues flowing through to the user community. These two organizations are dynamically focused on changes within the oil and gas industry. It is the inverse of the “muddle along” strategy of the bureaucracy. The service providers have in contrast a steady flow of revenue directly from the industry in the form of service fees. Their service offerings are directly reflective of the changes being made by the user community and the People, Ideas & Objects developers.

So although the power that currently is held hostage by the bureaucracy will only be held by a different group as a result of our removal and replacement of the bureaucracy. We are directly accountable to our revenue streams to the industry. We are also wholly accountable to the industry for the changes that are necessary to keep the business models and issues up to date and operational. Something that is currently not contemplated. This accountability is given to the oil and gas industry in the form of a software development capability that is dynamic and available to meet the needs of the industry on a go forward basis. Something that is critical in the 21st century. We are offering an accountability and dynamic capability that is currently lacking in the industry business model.

At the same time it will be those within the user communities leadership team that will need to be able to exercise the skills and leadership necessary to ensure that industry is provided with the software, software development capabilities and services that are needed. This is a difficult task to undertake from the point of view of developing the software in its initial stage. And a difficult task in terms of what is required on an ongoing basis. They will need the power necessary to make the decisions and implement the plans that the industry will need to see this come about. And I think with the structure being discussed here and the user community vision that is provided the leadership team will be enabled. Promises of money and power are serious forms of motivation, necessary to complete difficult tasks.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

Motivating the User Community

It is the user community that will have a significant role in the oil and gas industry. Not only will it be a key element in providing the oil and gas producer with the most profitable means of oil and gas operations. They will be the manner in which the industry operates and moves forward. With its control of the business model, its ability to affect the changes necessary in the software that supports and defines the administrative and accounting processes in the industry, and a budget that supports their operation. They will have the wherewithal to exercise the power needed to remove and replace the bureaucracy when the time comes. Adding to this user community vision is our recent discussion of the service providers and how they are derivative of the user community. And you begin to see the role and responsibility that the user community takes on in the oil and gas industry.

I am looking for those 28 individuals who will be interested in making the investment of their time and effort in the user community to prepare an alternative means of organization to the oil and gas industry. These people will make up the leadership team for both the user community as an organization, and the positions as Product Owners for the modules of the Preliminary Specification. Having the organizational and product leadership team working to build the organization necessary to provide an alternative means of organization to the oil and gas industry is the task that we need to conduct and to invest in. We don’t know how this transition will be done at this time. We'll figure it out as we go.

What is clear is the bureaucracy will not work with us. They have had every opportunity to do so and the only actions that they have taken is to attempt to steal our Intellectual Property. They are not managing the industry for the best interests of the investors, they are managing it in the best interests of themselves. And they could care less whether the industry earns or loses money. Natural gas prices have been depressed for years and there is no plan, no argument, and no discussion in which to deal with the problem. For them there is no problem. The only issue they see is us, in offering an alternative to their franchise.

Does anyone see the bureaucracy operational in the year 2020? How about 2025 or further down the road? Is it a viable, long lasting organizational method that meets our needs today or in the future? How is it that we can change to a new model of administration? Do we ask politely and smile? Is that the solution? I think they have to be physically removed. I think we have to give the investors in the industry a choice as to which form of administration they want to have administer their assets. The bureaucracy, or People, Ideas & Objects with the Preliminary Specification as its product vision, the Oracle Fusion Middleware and Applications as our technological base and this user community c/w the service providers. I think we can win this decision if we are able to structure ourselves in a way that shows we are a viable option to the investors. And again, how we structure that viable option to the investors is unknown and unknowable at this time.

With the opportunity costs at $705 billion for the investors to help them to select us. With the user community having a budget of $333 to $667 million for the software development work. And the 75 - 80% of the industries $40 - 60 billion in annual G&A costs. There is more than enough motivation for everyone concerned to make this transition happen. And besides, I think it would be rather interesting and challenging work that would be very rewarding. Making the oil and gas industry the most profitable that it could be.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here.