Who, as in You
It is those that are currently employed in the oil and gas producer firm, and the oil and gas service industry. These makeup the type of work that is done in oil and gas. And for a comprehensive ERP system to provide for these services it is necessary to include them in the user community as participants. In order to more full understand the need for their inclusion we need to discuss the reorganization that we are conducting within the application.
It is in this process of organizational change that we have touched on every aspect of oil and gas exploration, production and operations. By using the Joint Operating Committee as the key organizational construct of the dynamic, innovative and profitable oil and gas producer we change everything within the producer firm. Nothing is unaffected by this change. What we are doing is aligning the compliance and governance frameworks of the hierarchy with the legal, financial, operational decision making, cultural, communication, strategic and innovation frameworks of the Joint Operating Committee. Nothing is therefore untouched within the producer firm and the scope of the Preliminary Specification takes on the entire producer firm, the service industry, reorganizes the administrative and accounting resources into service providers and throws out the bureaucrats.
The Preliminary Specification strips the prototypical producer down to the C class executives, the earth science and engineering resources, the land and legal, and some support staff. The remaining resources are reallocated to these service providers who are organized around a single process and use the entire industry as their client base. This reorganization allows the oil and gas producer to shut-in any unprofitable production and save those reserves for when they can be produced profitably. This also removes the commodity from the marketplace, reducing the marginal supply and positively affecting prices. Another advantage is that the property records a null operation. There is no profit, and no loss as there are no operating, royalty, or overhead costs incurred during times when a property is shut-in. With People, Ideas & Objects Preliminary Specifications decentralized production model a producers overhead is variable based on their production profile.
This variable overhead feature operates in the following manner. The service providers receives no activity or transactions for any shut-in production and therefore bills no administrative or accounting fees to the Joint Operating Committee for the shut-in properties. Therefore the oil and gas producer records a null operation on any shut-in properties. A fundamentally different situation than with today’s inability to adjust a producers production profile from anything but 100% capacity. The overhead costs are the domain of the service providers and it will be their responsibility to manage them within their annual budgets.
Therefore to fill the population of the 3,000 people within the user community we need Engineers, Geologists, Geophysicists, Administrators, Accountants, Service Industry Representatives and more or less anyone else who works in the oil and gas industry. Except for the bureaucrats. We’re leaving them out. If we plan on leaving them out, they'll stay out. Everyone needs to keep a close eye on these people, and don't let them sneak back in.
The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and 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.