The Big Picture

Based on the industry's behavior it would seem that everything is ok in the oil and gas marketplace. Just ignore the problems of overproduction and oversupply and they’ll go away. The only issue is that I keep writing about it here. If only I would stop writing then everything would be fine. As we’ve documented here and as was reported in the producer's second quarter reports. There is no time to be wasting in terms of focusing our efforts on building the Preliminary Specification. Avoidance is somewhat the historical approach to solving problems. It has to become a full fledged crisis in order for people to act. The slow drip of the daily news doesn’t motivate anyone to make the change until the time comes when the changes are made for you. I think we’re at that point. The industry is taking its last few moments of peace and tranquility before things get out of hand and no one will be in control of the events.

Rumor was that the recent decline in oil prices to $39 was due to record volumes of short positions. Opec was unhappy with the movement of the price as a result of these short positions and therefore made the announcement they were getting together to discuss production freezes. The price then leaped back to $48 burning the shorts. Or did they? The price has been in freefall since it reached those highs and is now in the $43 range. This isn’t normal. I don’t think this most recent downfall is attributable to the short positions or a loss of faith in Opec. I think it’s the same thing that we saw in the natural gas marketplace a few years ago. The loss of faith in the producer's ability to deal with problem at hand. A loss of faith in the concept of “market rebalancing.” When this happened in natural gas we saw it breakdown from its traditional 6/1, then 10/1 pricing structure. It’s now trading at 16/1 over oil which is up from the 20/1 last year.

Nothing has happened in terms of making any changes to address the overproduction or oversupply in natural gas since 2010. Shale gas reservoirs currently provide centuries of natural gas for the North American continent. Producers are scrambling to turn all of those reserves on to the market as quickly as they can in order to raise the only form of cash that they can. This is the state of the industry. Oil is maybe four years behind the characteristics that we saw in natural gas. This is due to the fact that oil was not originally produced from shale, only natural gas. If it is as I suspect that the oil market is capitulating in terms of the price, we could be seeing the beginning of a fundamental breakdown in the price of oil. Then, as I have stated here many times before, that that will be the last source of funding drying up for the producers.

When the oil prices fundamentally break down, will that constitute a crisis in the industry that’ll motivate the producers to develop the Preliminary Specification? No investors will put money into the industry due to the state of the finances of the industry. They are abysmal, primarily due to the four decade long deception of bloated balance sheets being carried out at investor's expense. This charade being clearly evident on top of all the other difficulties. Bankers are now taking any money that hits the bank accounts. It's probably a good idea not to call them. Asset sales are about as impossible as can be, especially when companies such as Chesapeake are dumping their prime jewels for $0.00 consideration. Just to get away from the cash drain. Everyone is running around trying to produce as much oil and gas as they can because they need the cash. And the leadership in the industry predict “market rebalancing” some time in the next 2 - 3 years. Exactly as they predicted it four years ago.

The industry is financially destroyed. The commodity markets are destroyed. Gas fundamentally broke down, and oil is about to fundamentally breakdown. The world is awash in shale based reservoirs and the producers haven’t a clue what to do about them. The old business model, based on oil and gas scarcity, is redundant and has led to this crisis. We need to shift to a new business model that deals with the abundance of shale based reservoirs. Where producers are able to allocate production fairly and equitably across the industry based on profitability. If the well can be produced profitably when all costs are considered, then it produces. Otherwise it will remain shut-in. Current producers can’t do this because they don’t know which properties are profitable and which ones aren’t. If they do shut-in any production their losses increase because their accounting and administrative costs are fixed.

With the Preliminary Specification we use the decentralized production model which enables the price maker strategy to be implemented across the industry. By reorganizing the producers and industry we are able to identify each individual property's actual costs. Determine which properties are profitable so that the producers can shut-in the unprofitable properties. Saving those reserves for a time when they can be produced profitably. Increasing their overall corporate profits by not diluting their profitable operations with unprofitable properties. Allowing the commodity markets to find their marginal costs and reducing the costs of their reserves by the losses that they would otherwise incur in the current system.

So let's move. Let’s get People, Ideas & Objects funded and on its way to delivering the software the industry needs. It’s early September, what better time to start! I don’t see anything positive coming from the current situation.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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. 

An Assessment

We begin a new week with a 50% probability that oil and gas commodities will be higher at the end of the week. This should lead to a 50% probability that there will be higher commodity price projections by media pundits. Leading to the only conclusion, that we have a 50% probability of being in a bear market. The most interesting article to read is the one regarding Packers Plus innovations in Argentina. Taking the time to frac a well using coil tubing from 220 hours down to 7 hours for an open hole completion. Packers Plus is wholly responsible for the innovations in multi-lateral fracing. Their history is also one in which they struggled and fought industry to bring their technologies into being. If completions are being done in 7 hours which recently took 220 hours, you can be sure that the most important number for producers to understand is the 17% of all shale based reservoirs are located in the United States. This fact will need to become more prevalent in the minds of the oil and gas producers. The high cost of fracing just collapsed, but remains highly unprofitable due to shales prolific nature. Production discipline is needed and that can only be attained by implementing the Preliminary Specification.

It’s the beginning of September and we should be developing software but we’re not. We continue to develop the user community which provides us with the knowledge and understanding that we are continuing on the path to the delivery of our solution to the industry. September may be the ideal month in which to start the development of a project such as this, however it is not the only month in which it can be done. To put into context the point in time that we find ourselves in, I am reminded of a quote from Sir Winston Churchill. It was during the lead up to World War II. A time when he was ostracised for his position against Hitler’s violations of the Versailles treaty and armaments.

When the situation was manageable it was neglected, and now that it is thoroughly out of hand, we apply too late the remedies which then might have effected a cure. There is nothing new in the story. It is as old as the Sibylline books. It falls into that long dismal catalogue of the fruitlessness of experience and the confirmed unteachability of mankind. Want of foresight, unwillingness to act when action would be simple and effective, lack of clear thinking, confusion of counsel until the emergency comes, until self-preservation strikes its jarring gong -- these are the features which constitute the endless repetition of history. 

It is today that the Preliminary Specification can cure the oversupply and overproduction issues in oil and gas. What happens in the interim while we are clearly in this period of “Want of foresight, unwillingness to act when action would be simple and effective, lack of clear thinking, confusion of counsel until the emergency comes.” It is therefore necessary that the dynamic, innovative, accountable and profitable oil and gas producer. The producer that will use the Preliminary Specification to achieve those attributes, will be guided and provided with the flexibility to deal with whatever those future contingencies may be. Whether they are issues or opportunities the industry must be structured to deal with them in an effective manner. Disposing of the “muddling along” strategy permanently.

The only manner in which to do this is to ensure that the software that defines and supports the dynamic, innovative, accountable and profitable oil and gas producer is driven and defined by the user community that we are creating. Only then will the ability of the user community be able to act in the best interests of the producers, and be able to implement those features with their access to the defined software development capabilities of People, Ideas & Objects.

I heard the “jarring gong” long ago. I think some other people are within range of hearing it soon. However there are many in leadership positions that choose to ignore the situation, and are for some reason permitted to do so. We have here in two articles (here and here) from World Oil that the leadership of the industry, at a conference, were quoted as saying that “market rebalancing” may not occur in oil until 2018 and not in natural gas until the early 2020’s. And that is the extent of their involvement in this crisis. Just wait it out. Muddle along and maybe whistle a show tune.

Producers don’t have that time. Many are struggling to meet payroll now. They are the walking dead. And what we should be doing is appreciating the fact that we only have to deal with low commodity prices. Will these producers limp along for the next few years in the state that they’re in? I think that is foolish. That is plenty of time for the next “issue” to make itself ever present in the industry. Maybe that’ll be higher interest rates. Or a general downturn in the overall economy. Ignoring the problems of today is not a solution. Self preservation instincts need to be initiated and solutions put into action. It is obvious that we are dealing with “the endless repetition of history” here, but based on Winston Churchill’s quote we are also very close to the time that the “jarring gong” resonates across the industry and we begin developments of the Preliminary Specification.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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.

Labor Day

No posting today.

Third Friday Off

No posting today.

What Village Idiot?

Seeing all that is happening in the oil and gas industry. Understanding the impact of ERP systems on the behavior of organizations. And their ability to solve organizational issues and enable opportunities. With an understanding of the history of how the large ERP providers left in frustration decades ago due to the inactions of the producers. Seeing this same inaction play out during the worst crisis in the industry and the solution being provided by People, Ideas & Objects in the Preliminary Specification, which is an Oracle based solution. What village idiot would go into the oil and gas ERP marketplace? I thought with the big providers headed out decades ago it would be a good opportunity to get in. They seemed to better understand the marketplace. The oil and gas producers will do absolutely everything, including the total destruction of the industry, rather than implement an appropriate ERP system.

Speaking of village idiots. I find the speed in which the oil and gas marketplace is changing to be breathtaking. Anyone who enters this marketspace is going to have to be able to deal with this speed. People, Ideas & Objects are prepared. We have conducted the ten years of research that was necessary to design and architect the Preliminary Specification for the oil and gas industry. Others haven’t. What will they bring to the market if they should decide to enter. To compete in today’s market I think you needed to have joined People, Ideas & Objects when industry was enjoying themselves with the baseball bats in their hands. Entering today may be an excellent business opportunity for 2026.

We recently saw a fundamental shift in the marketplace as well. IBM, a former market provider, executed a comprehensive cloud development environment with Workday. Workday went with IBM as a result of IBM’s cloud based solution and commitment that they are no longer competing in the ERP marketspace. That’s one closed door. Workday themselves have an excellent ERP solution that is providing David Duffield the founder of Workday, and previously PeopleSoft, with a second calling. Workday has solutions for Education, Financial Services, Government, Healthcare, Insurance, Life Sciences, Manufacturing, Non Profit, Other Industries, Professional and Business Services, Retail and Hospitality, and Technology. I would think that oil and gas would use the “Other Industry” based solution. Workday, other than Oracle are the only two cloud based ERP systems that have been written from the ground up this century. Everything else is a non-cloud based legacy code from the prior century.

It was Nobel Economist Herbert Simon who once said “A wealth of information creates a poverty of attention.” I like to state to people that “A wealth of FaceBook friends creates a poverty of friendship.” Some people don’t understand. But I think in the case of the oil and gas industry we can say that “A wealth of Workday industry offerings creates a poverty of attention for each industry's needs.” People, Ideas & Objects are oil and gas focused software developers, it's all that we do. We are creating a dedicated user community and service providers that will only service the oil and gas producers. What I do know is that we have been developing the user community in a dedicated manner for over two and one half years now. Much of that time the oil and gas producers didn’t think that they would ever need the user community or Preliminary Specification. It may be of value for these same producers to have a software development, user community and service providers who are able to understand the issues and opportunities that the industry is facing. Granted I may be hard to live with, but at least I appear to know what I’m doing. I would think spelling out that I have solved arguably the most difficult issue in the industry, ever, and that I am persona non grata in the industry would be the most offensive language that I could use.

Industry took its best shot at me, and thankfully for me they missed. Now is the time to get to work and build the Preliminary Specification. And besides, anyone who chooses to enter this ERP marketplace would have to deal with the biggest village idiot of them all. I am a genetically enhanced pit-bull on steroids. I might be perseverant, but I do love the fight.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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 Walking Dead

There is a tradition or culture within oil and gas to treat ERP systems as necessary but costly. Therefore, the thinking goes, they need to be minimized in terms of their implementation within the producer firm. The money that is saved can then be used to drill a number of new wells and contribute to the bottom line of the business. And we see how that strategy is currently playing out within the industry. You reap what you sow and all the big ERP players moved out many decades ago. Writing off the oil and gas ERP marketplace as a dead zone. I have asserted that the current overproduction and oversupply can be attributed to a modern day ERP software bug. That is, the industries ERP system offerings are unchanging and unchangeable, essentially unable to accommodate the industry issues. At the same time the wells that were drilled, instead of being employed to eliminate the software bug, are losing money at record pace.

Until we stop dealing with the industry as just an engineering exercise and begin to start managing it as a profitable business we will continue with the status quo destruction. The number to remember is 17% of the shale based reservoirs are located in the United States. This can begin when the industry adopts the Preliminary Specification and as a result has the production discipline that is needed to correct the overproduction and oversupply. There will then be two types of producers in the industry. Both of which will be using the Preliminary Specification. The first group of producers will be the new startups that we will begin to see more of. And the second set will be the existing producers which we can now affectionately call the walking dead.

People, Ideas & Objects recommend that all future oil and gas development be done through startups. The strategic competitive advantages are phenomenal in comparison to the walking dead. Any investments into these startups provides 100% pure equity or debt exposure for the new investors. Whereas the investors face long lines of debtors and other equity interests in the walking dead that dilute their investment to negligible, if any, value. The other aspect is the cash commitments to these debt and equity holders in the walking dead will leave little or nothing left for any new investor. At best, any new investors cash will be used to pay down old debt of the walking dead producers. The walking dead’s competitive cost and payment structures are permanently uncompetitive.

Recently Blackstone announced the formation of two new startups in the industry, (here and here) using this startup strategy to their advantage and investing $1.5 billion. It's not that Blackstone are necessarily listening to People, Ideas & Objects it's just good business sense to do adopt this startup strategy. It is however true too that we have been in discussions with Blackstone since November 2015. This strategy also enables the startups to participate in the fire sale oil and gas property marketplace. Recall Chesapeake’s recent disposition of its Barnett shale assets for no cash consideration other than the opportunity to get out of their monthly cash drain.

This industry configuration provides the startups with the opportunity to leverage the existing operatorship capabilities of the walking dead. All at the minimum costs of the overhead allowances being charged. Giving the startups the time to build their own capabilities in the long run. The problem with this strategy is that People, Ideas & Objects assessment of our Revenue Model is based on the production profile of the producer. Meaning our revenue will need to come from the walking dead. Maybe I should find a better name for this class of producer and be more diplomatic. Never.

The walking dead have an obligation to their shareholders and to their debt holders. They have an obligation to their staff and the people that they conduct commercial operations with. I think their classification here is appropriate and they need to begin to operate their enterprise as a profitable business and not just an engineering exercise. The time for niceties passed a long time ago and it's time we all started to move forward. It would also be my opinion that those who would find this post offending wouldn't see the phenomenal business opportunity being spelled out here. So yes I do see the walking dead being the primary source of our revenues. It’s the only way they’re going to achieve profitable operations.

If industry was disappointed with my tone then maybe there is another way in which to deal with it. I have worked on the research, development and business regarding the Preliminary Specification since 1991. I have funded these developments myself personally since 2003 and have received nothing but a sound thrashing from industry since August 2003 when I developed the use of the Joint Operating Committee as the key organizational construct. I have been forced to make it a full time endeavor since that time as I am not welcome, or persona non grata in the industry. I believe I have built significant value for the industry and the industry is in the condition that it’s in due to the reasons that I have identified and solved in the Preliminary Specification. The person responsible for solving what can arguably be the most significant issue in oil and gas, ever, is persona non grata! I can be as harmonious as the next guy. I just want to build the software and solve this problem. Throw a little cash this way, producers have nothing to lose.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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. 

Willful Destruction

I have repeatedly claimed that “market rebalancing” is the willful destruction of value in the industry. What industry would go about deliberately destroying the productive deliverability and capabilities of its industry as a strategy and “benefit?” The passivity of the current administration is beyond belief. They settle nothing and justify anything. Looking at the situation in natural gas it has been six years where production has been unable to generate any profits. Producers need to account for these losses that were reported in 2015 and are continuing in 2016. These losses increase the costs of their current production by adding the amount of the losses to the reserves costs. These costs are represented by the debt and equity that was issued to incur the development of those assets. And must now account for these historical investments and losses made by the producer by way of loan, bond and dividend payments. Putting the current producers cost and payment structures outside of any reasonable interpretation of a competitive cost structure.

The point in market rebalancing is to reduce the supply in the long term to better match demand. And based on the EIA’s recent Natural Gas Weekly Update we see that the shale gas volumes are behaving in the “desired” manner. In early 2016 shale gas formations peaked at approximately 44 bcf / day and have declined to the current 41 bcf / day. Conventional gas volumes and Canadian imports seem to have made up the difference. Total supply is 79.9 bcf / day which is consistent with last years. The graph below shows the decline clearly. What can also be seen is that the declines appear to be mostly from the Marcellus, Haynesville, Eagle Ford and Barnett shale formations.

If I were a producer I would not be jumping up and down at this time. This does not deal with the issues that the industry must address in any sense of the matter. The first issue is the existing producers uncompetitive cost structures. Prices could skyrocket and they will not defer the losses and cash costs that have been incurred in the past. You carry your legacy with you. At some point you will need to address the past. Producers cost structures and cash demands will force the producers to demand much higher commodity prices in order to be profitable. Or even to be cash flow positive, which is the terminology they use in the industry. You have debts and equity positions that need to be addressed. Those will demand cash to be distributed from an ever smaller pool of “rebalanced” market production. Investors are aware of who they line up behind. If they see a long line of debtors and other investors feeding at the trough, what’s in it for them if they dump their money in?

The second issue of course is that 17% of shale formations exist in the United States. Those 17% have created the global collapse of both the oil and gas prices over the past decade. What happens when the countries that have the other 83% of the shale formations begin to use their resources. Already the LNG market prices are in line with North American natural gas prices. A big change from when everyone began developing the multi-billion dollar LNG facilities to access those export markets. Another look at that graph and we can see that in as little as six years, from 2010 to 2016, production of natural gas from shale increased from approximately 10 bcf / day to 44 bcf / day. A period of time when the natural gas business was on its knees. If prices do come back, how long will this natural gas production decline curve go on? Will it be measured in years or minutes?

It is the same situation for oil. Producers need to think of 17%, and only 17%. The way in which they operated their firms in the past won’t work anymore, your losses are telling you that. We have shifted from a world of scarcity to one of abundance. Without production discipline being exercised at each and every producer the industry will continue to be a no man zone. Production discipline based on profitability is the only reasonable, fair, equitable and manageable way in which it can be implemented. Alternatively you could have the government come in and tell you which areas produce and which areas won’t. How would that fit? The Preliminary Specification enables the industry to implement production discipline based on profitability. It is the only way forward in the industry, everything else is a an exercise in further destruction and delusion.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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. 

Ready To Go

There is always an easy reason why the Preliminary Specification can’t succeed. Whether that reason is collusion, or some other simple excuse that fits today’s headlines. The question needs to change to ask “what if the producers can’t survive.” Leadership and action are needed to be taken in the industry. Time has been taken to explore the remedies inherent in the current organizational structures. “Market rebalancing,” hoping and waiting have not achieved anything other than the complete atrophy of all financial value from the industry, and its destruction. The issue we need to address is that the United States holds 17% of all the probable shale reservoirs. We live in an era of energy abundance. To achieve the change we desire we need to change the direction that we take in the industry. That direction is the Preliminary Specification.

Producers don’t believe the Preliminary Specification scope and scale can be approached as it is currently configured. Yet it is that same scope they attempt to undertake within their own operations. The difference is that People, Ideas & Objects will have the resources from our budget to deal with both the scope and the scale of our application. And is it reasonable that producers solve the scope and scale within each producer firm independently and repeatedly? The current producers don’t have the resources to deal with either the scope or scale appropriately which has led to what I have termed a modern day software bug. That being the inability of the oil and gas producers to deal with the issues of the industry due to the fact that their ERP software is unchanging and unchangeable.

It doesn’t take much effort to see the devastation that has occurred in the industry. In the cities where oil and gas operate there are severe economic hardships being realized due to the difficulties in oil and gas. The amount of revenue that has been irretrievably lost over the past number of years due to the decline in oil and natural gas prices has been substantial. These losses have been an element of our value proposition for the producer to consider in terms of dealing with the costs of implementing the Preliminary Specification. Oil and gas price increases would be realized on a go forward basis once the Preliminary Specifications price maker strategy was implemented across the industry. Enabling the commodities to seek their marginal costs and provide the industry with profitable operations on a consistent basis. Leaving these extensive periods of economic malaise behind as just really bad memories, permanently.

After all the efforts of everyone in the industry we find that it is more than just an engineering exercise, it's a business. It needs to be run as a business and those business ideas need to become the way in which the industry is managed. “Price maker” is not collusion, as I repeat once again. It is an economic principle to define the characteristics of certain products such as oil and gas commodities. If we adopted strategies that were consistent with the characteristics of the commodities then we would leave these miserable times behind. There are trillions of dollars that are being lost due to the current inactions of the producers. All as a result of the superficial analysis that the Preliminary Specification is collusion, or I said something that upset someone at sometime, that this is that or that is this. This industry is a disaster and we need to fix it. Producers have run out the clock and exhausted their resources in terms of time and money. There are no ERP system alternatives for which the producers can have the research completed within the next decade. The Preliminary Specification is available to be developed today.

We enter a window of time in early September where people’s attention can be focused on the development of the Preliminary Specification. If we had the financial resources to do so. This is the most natural time to begin a project such as this, and the most effective in terms of delivering our software to the producers in a timely manner. We have been focused on developing our user community for more than two and one half years. This has been our priority and will continue to be once we’ve secured our budget. We will only deliver a quality product. Which demands that these be user community based software developments. We are waiting on industry and are otherwise ready to go.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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. 

Taking a Weeks Vacation

No posting this week. 

Well That Was Unexpected

Some interesting thinking is being done over at Vox.EU.org for once. Not that they don’t always do good work. It’s just rare to find any thinking in oil and gas that doesn’t just parrot the “market rebalancing” theme. They state that “A very incomplete global mapping suggests a US shale oil share of no more than 17% of a huge geological wealth.” And that “The advancements in horizontal drilling and fracking can also be applied to conventional oil extraction.” Kind of puts the argument about “market rebalancing” into perspective doesn’t it? It also makes the entire discussion of current inventories of oil and gas on hand in the U.S., those numbers that are eagerly awaited each Wednesday and Thursday moot. If the world has these types of resources on hand I can state unequivocally the oil and gas industry will never be profitable. The cash drainage will continue unabated for the remainder of the century.

We are on a dead end street travelling at 300 mph with no brakes and the brick wall is well within sight. Does anyone have a different scenario that they can paint? Is there something behind the vision of “market rebalancing” that is not permeating my thick skull? What’s the plan? How do people participate in the oil and gas industry without having to destroy their life savings, their careers and everything else. Is there a pool of unintelligent investor's that is as deep and as wide as the Pacific and the Atlantic oceans that I am not aware of? Just exactly, in light of these facts that the world now has horizontal drilling and fracking, will the industry proceed?

Muddle along! Nothing to see here. That’ll be the response to these facts that speak to the futility of proceeding without the Preliminary Specification in place. Creative destruction is the only answer to how the industry is rebuilt, brick by brick and stick by stick. What exists today is too vested in the status quo and is unable to deal with the situation on the ground. They started losing money six years ago when the natural gas prices were affected by shale. Their losses began to significantly increase when oil too was affected by the abundance of oil from shale formations. These losses demanded cash to continue which caused the investors and bankers to pause. We are now in a phase where the market value of oil and gas properties are being diminished by the sheer volume of properties being made available for sale. Chesapeake dumping their prized Barnett shale assets for nothing. Just to get away from the cash drain. But let’s be honest, next week's inventories may be down from their record volumes.

Our plan enables the industry to refocus on energy independence on the North American continent. Something everyone, even investors and bankers, can dedicate themselves too. In an era where the resources are as abundant as they are, this sounds contrary to the reality that has been painted here. Natural gas is a continental price. And the volume of oil produced by the U.S. is material to the world demand and supply. We do control our own destiny in the oil and gas industry. This however, is only the case if the industry is profitable. And real profits, not those SEC induced accounting profits of the past four decades. What the industry needs to do is to adopt the production discipline that only profitable production is produced. Which is attainable through the Preliminary Specifications decentralized production model. Then and only then will the markets response attain its marginal prices. Until then we have these facts and these outcomes.

There is one material change as a result of the information from Vox.EU.org. And that is the market for People, Ideas & Objects Preliminary Specification is global and not just North America. We however are not contemplating that at this time. The issue in North America is the one we are focused on and are capable of dealing with. Maybe we will be able to deal with the others in the future. I am not going to do anything about that now, we have a job to do, let's get it done.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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.