It's Time for Some Time Off

It’s summer and everyone deserves some time off. I will be taking some time off myself, returning August 4, 2014. What we have now is the product in the Preliminary Specification, the Oracle Fusion Middleware and Oracle Fusion Applications and our user community. We have the rough sketches of a plan that’s in place for the period up to January 2017. And we have begun the process of putting the people in place to make this project real. The September to December 2014 time frame “might” be an opportune time for us. I think it will be too early yet. However, we will begin our push then and see what happens. Until August 4th have a good summer and we'll see you then.

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. 

User Communities Product Owners

We come to the last category of our user communities leadership team, the product owners. There will be many product owners in the user community, I think as high as twenty in total. Each one will have one element of the development as their responsibility. Each one of the modules of the Preliminary Specification will have a product owner. There will be product owners for the data model, user interface, architecture, decentralized production model etc. Product owners have a defined role in the traditional software development team, however, I see them holding a critical position in the People, Ideas & Objects development team and user community developments. They will be ensuring that the needs of the user community are met by the People, Ideas & Objects development team.

How the product owner will ensure the user communities needs are met will be as a result of their creative design, issue identification and resolution skills. As well as other skills. Taking in the whole of the user communities input, finding the innovative and value generating ideas from the community and working with those users to integrate those ideas within the module or systems in ways that provide the oil and gas producer with the most profitable means of oil and gas operations.

Having the understanding of the developments as a result of being a key member of the development team gives the product owner a unique perspective on the issues and opportunities in the oil and gas industry. They will be the one who will prioritize the developments for the developers and provide other management activities regarding the user community. Their ability to listen to the user community regarding their module gives them the insight to predict the direction and needs of the user community in the near future. Ensuring that their user community operates with little interruption from the noise of the irrelevant and inconsequential. Using whatever tools that are available to keep their community informed and up-to-date.

Through these interactions with the People, Ideas & Objects development team. And through the interaction with the user community itself. The product owners will be able to exercise significant leadership over the domain of the module that they are responsible for. It will be they who are ultimately responsible for ensuring that the decentralized production model is properly integrated in the Preliminary Specification if that is their domain. It will be they who are responsible for the billions in opportunity costs that the industry will be able to earn as a result of the that module being implemented properly in the software. That there is no confusion or misunderstanding within the user community, and that in turn is delivered to the software developers.

These product owners will be well versed in the ways and means of the oil and gas industry. They will understand technology like those few people who really do understand today’s technology. They will be leaders in the community. And they will see these positions as the most exciting positions in the oil and gas industry to have come along in the last one hundred years. If one of these modules was yours, it would be the result of your efforts to ensure that the community and the development team got it right.

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 User Communities Officers

When we discuss the officers of the user community we are of course speaking of the Chief Executive Officer, Chief Financial Officer and Chief Operations Officer or CEO, CFO and COO. These positions will need to be filled once we have secured the board of directors and they have a chance to recruit these individuals. These are the people who will be able to put a name and a face to the organization and will become the public image of the user community. As in any organization these officers will have the authority and responsibility to enact the plans and budgets of the organization. They will be the ones that are looked to by all within the community for the direction, goals and objectives of the organization.

The user community will be comprised of a variety of different types of users. Some will be the casual user who is fully employed by a producer firm or a service provider. Others will be full time consultants who specialize in the analysis and systems work that is prevalent in the user community. Still others may be full time employees of the user community organization that we are discussing. These officers will be representative of all of these types of users and ensure that the collaborative input of their understanding of the oil and gas industry is captured and delivered to the People, Ideas & Objects developers. It will also be necessary that the user community is kept aware of the larger role that they share in controlling the business model of the industry. And ensure that this work continues to provide the oil and gas producers with the most profitable means of oil and gas operations.

It will therefore be a collaborative style of leader that we are looking to fill the three officer roles in the user community organization. Therefore I see these roles being filled by unique individuals from the oil and gas communities. Ideally they would be individuals who have achieved significant success in their career. Someone who would see the community role of these positions as something new and challenging. Yet still see the effectiveness and the power of the user community in affecting change in the oil and gas industry through the business model.

It is my concern that the user community would lose its focus and get lost in some of the blind bunny trails that organizations seem to find themselves in at times. This focus on providing the oil and gas producer with the most profitable means of oil and gas operations is an infinite challenge. That we have defined significant value in the model today is testament to the value of the low hanging fruit that exists in using the Joint Operating Committee. We have only begun to explore this model. And the value for the producer will essentially never stop, and therefore we can never stop collecting that low hanging fruit and reach for the more difficult value that is also attainable. This I see as a primary responsibility of the individuals who are the officers of the user community. To keep this community focused on finding that value for the producers through the hard work necessary to do so. Complacency is unacceptable.

What we know today about software is critical to be kept in the minds of the user community members and their leadership. That software both enables and constrains organizations. It enables them to do the things that software, when it exists, can provide the organization. It at the same time however constrains them from doing anything else. And that includes change. People, Ideas & Objects provides a software development capability to ensure that the industry has the ability to be enabled by software and to deal with the constraints of the software that it uses. But that is not enough. It also needs a user community that understands the dynamic nature of the software and its impact on organizations. And understands that it is not encumbered by those constraints due to the fact that the user community controls the business model and have a dedicated software development capability at hand. These are the tools that the dynamic, innovative and profitable oil and gas producer of the 21st century needs to have at their disposal. And the officers of the user community need to lead the way in which this happens.

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 User Communities Board of Directors

For the remainder of this week I thought I would go through the individual positions that are available in the user community leadership team. That way people will have a better understanding of the types of positions that are available and which ones they may be best suited for. Today’s topic is the board of directors of the user community. As I have indicated before I don't know if this is a board of governors or directors at this point, we'll however just use the term directors at this point. There are six positions available here including the chairman’s position. One of the unique characteristics of the chairman's position at this point is that position holds two votes. As I indicated in a previous posting the position of chairman is being filled by myself.

The role of director for the user community will be that for the user community itself. It is a position that looks towards the needs of the user community and its requirements. Based on the user community vision it will hold and control the business models of the software contained within the Preliminary Specification. It will recruit the officers and executives necessary to operate the organization consistent with its vision. It will approve the budgets and financial statements of that organization. It will engage the oil and gas industry at large in agreements to provide for their needs in terms of what their ERP and other systems requirements are. It will be responsible for the actions and activities of the user community in fulfilling its obligations to the producers in the industry and its users.

The user community will be endowed with an Intellectual Property License from People, Ideas & Objects. This license will permit the user community to further develop this Intellectual Property with the understanding that all developments will become the property of Paul D. Cox, where they will remain available for the user community to use and develop further. No charge will be levied to the user for use of this Intellectual Property. On the contrary, users will be paid for their contributions. We are paying for the acquisition of the Intellectual Property from the user community. Resources will be provided from People, Ideas & Objects for this purpose. The user community will be for the exclusive use of People, Ideas & Objects.

Directors would preferably be drawn from the oil and gas business community. From a broad mix of administration, accounting, earth science, engineering and technological disciplines. Having a diverse board of directors would represent the needs of the users. Ideally they should be senior members of the community and have established careers. These positions would be part-time in terms of their time requirements however we would expect these people to be fully committed to providing the oil and gas producers with the most profitable means of oil and gas operations. As that is the key differentiation that makes the user community so valuable and worthwhile.

If you are interested in these position please contact me below. Or alternatively if you know of someone who would be a worthwhile candidate for the user community, send this information on to them. What we have with the Preliminary Specification, the Oracle Fusion Middleware and Applications and user community developments is an excellent product to offer the oil and gas industry. What we also have is a plan in which we are offering our product as an alternative to the industry as a replacement to the bureaucracy. With a product and a plan we can now focus on the people and work towards this decision in January 2017.

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. 

Preparing for Decisions to be Made in January 2017

Our priority in the next five years is the development of the user community. In the next 30 months we are developing the user communities leadership team and preparing our offering to the board of directors of the producer firms. This offering consists of the vision contained within the Preliminary Specification. The Oracle Fusion Middleware and Oracle Fusion Application infrastructure we will be using. The third and critical component of this offering is the user community itself. People, Ideas & Objects are user driven software developments. Without the users involvement we have software developers with a limited understanding of the oil and gas industry and are unable to fully comprehend the needs of the users. With the users involved in our development, based on the user community vision, we have a distinct competitive advantage and can provide the oil and gas producers with the most profitable means of oil and gas operations.

This decision that the board of directors of the producers will be making is scheduled for January 2017. It will compare our offering to the status quo bureaucracy and determine which method the producer wants their organization operated under, the mindless bureaucratic “muddle along” strategy, or People, Ideas & Objects offering as described above. Careful consideration should be taken by each producer to determine their choice. If they choose the bureaucracy they should understand that People, Ideas & Objects stands on 10 years of research and 23 years of effort by myself to get to the point that we are at today. It will be a long time before any other software offering comes along if People, Ideas & Objects et al is deemed inadequate. There is also the issue of using the Joint Operating Committee. That breakthrough was a result of my research and is a cornerstone of my Intellectual Property. No other offering will be able to use that IP in another offering. If you choose the bureaucracy it is something that you will have to live with for the short and intermediate term. And there will be nothing more satisfying to them.

From a producer point of view there is much to be concerned about. The opportunities that the Preliminary Specification et al provide are substantial and are summed up by our statement that we provide the oil and gas producer with the most profitable means of oil and gas operations. With trillions of dollars in value in terms of the differences between ours and the bureaucracies methods of managing the industry. Some quantifiable through the decentralized production model, and some unquantifiable through the toolset of automation, specialization and the division of labor. Ours is an appropriate vision for the oil and gas producer in the 21st century. One that enables the producer to focus on their core competitive advantages of their earth science and engineering capabilities, and their land and asset base. Where the administrative and accounting minutiae is moved from a producer based capability to an industry based capability. Freeing the producer from the constraints of growth in their production profile.

In the next few days we'll go through the individual positions that we are looking for in the leadership team. As I stated before these will be exciting positions that will have a dramatic impact on the outcome of the future of the industry. There will be much risk involved as we do not know what the results of the decisions by the directors in the producer firm will be. However, with much risk there is much reward. These leadership positions stand to gain substantially as they are at the beginning of the development of the user community and will have the ground floor opportunities in establishing the sub-industry we call the service providers.

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. 

Who Decides?

If we consider the amount of reserves of oil and natural gas that are held in the shale basins. The high costs of producing these basins. The bureaucracies inability to manage their production at any volume other than at full capacity. We can quantify the decision being made by the industry in terms of selecting either the bureaucracy or People, Ideas & Objects, the user community and service providers in the trillions of dollars of profits. Just on that basis it will be hard for the bureaucracy to make their case that they should be kept in charge. If you think they'll change their strategy and their means of operations you truly are an optimist. Ask yourself, where will they start and how will they begin.

The question that we need to answer today is who is it that is going to make the decision on behalf of the industry. What great power is going to come down and make this decision to go with the bureaucracy or with us. Simple, each producer firms board of directors will be asked to make the choice for their firm. Then, based on the aggregate of the decisions that are made we will determine which group wins the decision. This also assumes that the company will be forwarding the financial resources for the developments with their positive vote for us.

Some may consider this to be a foolish question to pose to an otherwise uninterested board of directors. It is also an invitation for the bureaucrats to invade the boardroom and infect the minds of the directors with their double speak. Quite possibly. How else can we have the decision made? I think this falls within the scope of the directors domain. Its also a decision that falls within their authority. I think this is the place that we should be spending our time in the next 30 months.

I mentioned yesterday that the decision makers should consider the consequences of choosing the bureaucracy. Having no choice but the bureaucracy would be the outcome, and if you're unsatisfied with their attitude today, just wait until there are no alternatives present in the marketplace. There is also the possibility that that form of organization is on its last legs. Its not unfamiliar today to hear that the industry is unable to staff up for the future. That the ability to meet the future demands of the industry are questionable based on the resources that are available in the marketplace. Is this not a failure of the method of organization that is being employed by the industry. Is the bureaucracy failing to meet the needs of the industry?

The better question might be what if the bureaucracy fails. As we have mentioned before it did fail before in the great depression. A time when government had to step in and take a larger role in the economy. If it fails again what will the industry rely upon? Failure is a concern but there is also the fact that the bureaucracy might just decide to quit. The average age in the industry is in the 40’s. Retirement or the next vacation is the topic of discussion in most elevators. What happens when this discussion becomes final and the bureaucracy just leaves and doesn't come back.

Preparation for the future is something that should be seriously considered as one element of the changes that are being discussed here in the move towards People, Ideas & Objects. Keeping your options open might be a good strategy for the dynamic, innovative and profitable oil and gas producer in this time of change and opportunity.

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. 

Decision Day January 2017

We have therefore made the decision to prepare our solution to the industry so that they can make a decision as to which method they will use to operate the industry. The bureaucracy or the People, Ideas & Objects Preliminary Specification, the user community and service providers. This decision will be made by the oil and gas industry and we have established January 2017 as the day for that decision to be made. That leaves us with thirty months in which to develop the leadership team and continue developing our offering. That offering consists of the Preliminary Specification as the vision of how the industry would operate. The Oracle Fusion Middleware and Oracle Applications as the infrastructure of our offering. And the leadership team of the user community. The leadership team consists of both the leadership of the user community itself and the leadership of the Preliminary Specification.

This change in our decision timelines does not change any of our product delivery timelines. It does however affect the timelines in which the industry will be called upon to financially support People, Ideas & Objects. It will be January 2017, upon the decision of going forward with our offering, that the funds detailed in our budget will be forwarded from industry to People, Ideas & Objects. These resources will then be used to support the user community development and introduce Oracle to our offering and begin the developments with them. No work or discussions will be undertaken with Oracle during the next 30 months leading up to the decision being made by industry. If Oracle is in the room or not does not make any difference in the decision making criteria of the industry. Oracle will be asked to do their job when we are in development. They will not be asked to do any favors or provide any commitments to industry. We will pay them for the work that they will do when the industry has provided us with the resources to do so.

The question then comes about what happens as a result of the choice to go forward with the bureaucracy. And that we must have a plan for as well. It will be clear at that time that the bureaucracy is impenetrable and will survive for the foreseeable future. Industry should consider the consequences of that decision. However we also need to consider the consequence of that decision. And I have. Although it would be ideal to proceed with the development of the software, the user community and service providers there really is no second best alternative for the Preliminary Specification. Implementation of the Joint Operating Committee dictates an all in type of methodology and mindset. There is no partial pregnancy when using the Joint Operating Committee. Things like the decentralized production model only work when the industry is operational on it. It is that stark and that uncompromising. Therefore in terms of preparing a secondary offering for industry. Or compromising on the Preliminary Specification as it stands today, its not possible because of the nature of using the Joint Operating Committee.

Therefore People, Ideas & Objects will be dissolved as a going concern as will the user community. Their opportunities for any future will be non-existent and therefore the organizations will cease to exist. The Intellectual Property however is a different story and I will manage that property as I see fit.

Until the day we know what the decision is we have much to do. The first is to start with the development of the leadership team of the user community. After all what we want to do is to get rid of the bureaucracy and build some software so that we can provide the oil and gas producer with 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. 

Adjusting our Timelines and Deliverables

Presenting a clear choice as to which method of organization the industry would operate is the only manner in which to eliminate the bureaucracy from the landscape. There has to be a comparable way in which people can see the differences in how the industry would perform, based on the two different methods. There is no other way to remove the bureaucracy other than replacing them. The industry also has to see a community of like minded people prepared to deliver that alternative to them if they should be chosen. With People, Ideas & Objects we have the vision of how the industry would operate with the Preliminary Specification. Using the Joint Operating Committee as the key organizational construct, the decentralized production model organizing the industries resources in a manner that is more efficient and enables features like a “price maker” strategy. Building on this vision of how the industry would be operated is the Oracle Fusion Middleware and Oracle Fusion Applications that provide the cloud computing infrastructure on which to operate.

What we need now is the user community to begin forming. The user community is a critical element of the quality of the software that is developed from this point forward. People, Ideas & Objects are user based software developments. We need a strong user community to be permanently developed to direct the software developers in the needs of the software that will be used in the industry. This user community, based on our user community vision, has the resources and wherewithal to affect the changes within the industry through the business models contained within the software itself. If industry wants to fundamentally change the way that the software operates then they are able to work through the user community in order to have those changes realized.

We want to be selected as the choice of which solution the industry uses to manage their assets. In order to do that we have to have certain elements of the user community established as the third component of our offering. We are starting by developing the necessary leadership of the user community. This leadership consists of both the leadership for the user community itself and the leadership for the Preliminary Specification. We have set in place time lines to have the developments of the Preliminary Specification begin in the year 2019. Enabling us the time to prepare for and to get the word out of what we are doing.

The bureaucracy have shut us out of the marketplace in terms of participation in the ERP vendor marketplace. We therefore have no resources and are doing this on a volunteer basis until our budget is raised. Our capital requirements are significant, however our impact to the individual producers is far greater than our costs. The opportunity costs that are being incurred during the time we are developing the leadership team will be in excess of $300 billion.

I think that it is clear to me that developing the user community beyond the leadership team would be counterproductive. Involving the general user in a potentially contingent operation is unnecessary and hazardous to their careers. Having the leadership team in place would be more than adequate for the industry to make a decision as to which method they want their assets managed. Going beyond the leadership team in terms of user community development would be a nice to have, however I don't think it adds any greater value to the decision making process that the people who will be making the decision will need. So I think we can keep it at these three components of our offering and force the decision based on those criteria. Based on that we need to revisit our timelines and recognize that our development start date of 2019 is appropriate however we need to move the decision time frame forward in recognition that we will not have a full user community in place. Therefore I have moved the decision timeframe forward to January 2017, 30 months from today, enabling an additional 2 years of user community development after the decision is made.

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. 

Preparing a Choice for the Industry in the 21st Century

With so much value being generated in the Preliminary Specification, the user community and the service providers. You would think that the bureaucracy would find the time to engage us and begin the work necessary to make that value accrue to the shareholders, the people in the industry and society in general. That’s not the case, instead they try and copy our Intellectual Property and use it for their own purposes. I am certain their use of the IP will be to provide the proof necessary that the concepts underlying the Preliminary Specification will not work and that they can proceed to be the only game in town. That is the way that bureaucrats think.

One thing we know for sure is they are not taking the opportunity to shut-in any production and halt the decline in natural gas prices. We have said it here before. Bureaucracies can’t change. For them to implement a strategy that rolled back production while inventories were so low would be a tactical win for the industry. Prices would respond handsomely as the market and the natural gas storage providers would be both competing for a lower level of production from the producers. This would provide the producers with a foundation of which they could establish the “price maker” position that the Preliminary Specification enables. However there is no discussion of this. There are no reasonable people standing up and saying that this is an opportunity on a go forward basis. Just silence and muddling along.

This is why the user community and the service providers that are affiliated with People, Ideas & Objects are providing an alternative means of organization for the oil and gas producers, investors and people in the industry. Enabling a choice as to which method they want their assets managed. The bureaucracy and their muddling along strategies. Or the People, Ideas & Objects ecosystem that provide the most profitable means of oil and gas operations. One that has tangible and significant improvements in the profitability of the industry.

Its amazing isn't it that for the many years that we have been touting the value that we generate the only thing the bureaucracy has thought to do is to steal it. What purpose at this point does it make in trying to steal it, I don't know. What we will keep doing is preparing our alternative means of organization for the time when industry makes the decision as to which group to go with. The bureaucracy or People, Ideas & Objects et al.

And that makes your participation in these next few years an important element of the success of this initiative. Particularly if you feel you can fill one of the leadership positions in the user community. It will be through your leadership that we will be able to prepare this offering and make the changes in the industry that are necessary. Bureaucrats don't change. They haven’t for decades and they won't in the future. We need to prepare an alternative means of organization for the dynamic, innovative and profitable oil and gas producer.

It's an ambitious plan. Only because it is necessary as a result of the poor performance of the bureaucrats. If we saw some response that showed any sign of life from them then they might be given a second chance. However there is no sign of life and there are no second chances. There is only what we have to do to eliminate the bureaucracy from the landscape and implement what the industry needs for 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. 

Value Added Through the Service Providers

One area that we have not discussed in the recent past is the service providers that are enabled through the transition to the Preliminary Specification and the user community. The service providers are derivative of the user community in that they are based on initiatives and actions of the people who are involved in the user community. Members of the service providers are licensees of the People, Ideas & Objects Intellectual Property as they use the software and prepare their services based on providing the Preliminary Specification to the individual producer firms.

Service providers will focus on one detailed process or subprocess of the administration or accounting of the producer firms of the oil and gas industry. They will, in most instances manage that process for all of the producers within the industry. This is to enable them to focus on their competitive advantages of automation of the process, specialization and the division of labor. These tools will bring significant value to the dynamic, innovative and profitable oil and gas producer through successive iterations of continuous improvement. Value not only in terms of lower cost of service but also in terms of the quality of that service.

The particular process that a service provider will manage may appear small in terms of its domain of what a producer undertakes. However, when aggregated throughout the industry the scope of the undertaking will present unique challenges to the service providers. Competition between the service providers will not be within the individual processes. Generally one process will be managed by one service provider. Some exceptions will apply as can be expected. The competition between service providers will be generated in the form of how they apply specialization and the division of labor to the processes that they manage. Innovation in this area will be high and lead to a competitive environment between the service providers.

I also foresee constant change and improvement. The way things are done today is to find the most efficient method possible. That is with the constraints that are present within each producer firm. With the situation we are discussing here the constraints will be based on the resources and domain of the industry. There will need to be significant trial and error in order to explore all of the possibilities of what are the most efficient and effective ways. This is one of the advantages of having a dedicated software development capability like that of People, Ideas & Objects available to the service providers.

It is important to remember that the service providers are replacing the administrative and accounting resources of the producer firms. Under the decentralized production model the producer firm is reduced to the C class executives, the earth science and engineering resources, the land and legal with some support staff. These service providers are then billing for their service on a unit of work basis when the producer incurs the service providers process. They then are billed for the standard rate for that process and that is the extent of the interaction with that service provider. If the producers production is shut-in for the month, then they do not incur the unit of work or the standard rate and as a result the producer does not incur any of the administrative or accounting overhead associated with that property. This is the benefit of the service providers to the oil and gas producer. If they shut-in production to 80% of capacity then their overhead is immediately reduced to that same 80% threshold. Doing so will therefore record a null operation, no profit but also no loss, save the reserves for a time when they can be produced profitably, increase the profitability of their operation in the short term, remove the excess production from the marketplace and increase the commodity prices.

The service providers are a critical part of the industry infrastructure necessary for the Preliminary Specification. They are derivative of the user community, and are a key part of that community. The owners and operators of the service providers will be the key members of the user community and will be those that have made a significant contribution to the user community. We will reward our user community members in the best ways that we can. And providing them with membership as a service provider is one of the key ways in which to do so. There may be several thousand different service providers in the end. But they will all be part of a new sub-industry that we are creating here that will be generating approximately $40 - 60 billion in annual revenues. These are the G&A costs that the oil and gas industry is incurring today in North America to employ these administrators and accountants. The people that will be moving to the service providers themselves.

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.