OCI Revised Organizational Constructs, Part I

 People, Ideas & Objects Preliminary Specification contains seven Organizational Constructs that are identified, supported and in a constructive manner, constrained by them. Incorporating these within ERP software allows users of our Cloud Administration & Accounting for Oil & Gas software and services to impute an understanding of the behavior and expectations of what is required by the producers and industry. Providing people within the industry with an understanding of “what, how and why” they’ll be able to use People, Ideas & Objects, our user community and their service providers to build value throughout the industry. In a decentralized environment, deferral of the operation away from the bureaucracy should not imply a loss of control. ERP software, and to a greater extent the Internet, become the means in which organizations are able to operate and achieve organizational performance trajectories that are superior to today’s. Our seven Organizational Constructs can be seen as both the enablers of that performance and the means in which to maintain the necessary control. 

People, Ideas & Objects identified the lack of real profitability in the producers was to be felt across the industry but also with everyone involved across the greater oil & gas economy. Profitability is the largest source of financial support that an industry has access to. This is now well understood and appreciated throughout the greater oil & gas economy. The efforts of everyone whether that be time, energy or money have been wasted by the self interests of producer officers and directors. The capitalists focus on profits being earned by investors is therefore appropriate in any and all cases. When investors are satisfied, they are there to provide prosperity for all those associated within a profitable industry in the short and medium terms, and for the future. When they’re not satisfied, they are quickly able to leave, sending the ultimate message of disapproval of the activities being carried out. It is our belief that investors, as were others, were duped for several decades by specious accounting that did and continues to misrepresent the performance in the producer firms. Accounting and reporting that aggravated and hid the abysmal performance of the industry for a protracted period of time. Leading to the comprehensive exhaustion of value from the industry. What is represented today in the financial statements of the producers would not be something to be proud of. Producers' financial statements reflect they are in serious medium to long term financial jeopardy. And none of today's financial statements are representative, they are as specious as they’ve ever been. Built on the promises of “building balance sheets'' and the ridiculous notion of “putting cash in the ground.” 

People, Ideas & Objects have been able to document the fact that chronic overproduction has been the source of a lack of real profitability throughout North American oil & gas since at least the July 1986 oil price collapse. Secondly, we noted that the Preliminary Specification published in August 2012, addresses overproduction specifically with a direct ERP software and services solution to this issue which generates profitability everywhere and always. Overproduction has been the systemic cause of the financial destruction in the industry for all but 6 of the past 36 years. Which dramatically contrasts the healthy compensation of the officers and directors over this same 36 year period. People, Ideas & Objects have also stated, repeatedly since May 2004, that software defines and supports organizations. Therefore any organizational change will have to be made in the ERP software first or the organization will regress to that which is defined in the current software that's used. The producers have used this knowledge to secure their franchise by not sponsoring any ERP software developments in the industry. Leaving them uncontested in their method and means of “governance.” Today we know that given the ultimatum of committing to the development of the Preliminary Specification, and therefore establishing an overall method of increased dynamism, innovativeness, accountability and profitability everywhere and always in North America. Producer officers and directors on August 31, 2021 chose to ignore the opportunity and stay the course. 

It can go by any number of different descriptions. “Cut and run,” “bail” or “cut your losses.” The one consistency in all of these is the fact they define failure. Shale oil & gas has now been deemed a failure by the producer officers and directors. They’re getting out, selling properties and writing down those shale assets that alleged such promise in all of those investment offerings. It’s on to the real thing now with clean energy and they’re making the transition with the oil & gas revenues established by prior investors in an irresponsible and unauthorized fashion. Revenues that need to be used to rebuild the industry and prepare for what is unquestionably the most difficult future oil & gas has ever faced. 

Our white paper published on July 4, 2019 entitled “Profitable, North American Energy Independence -- Through the Commercialization of Shale” suggests a means and method in which the industry could turn shale profitable. Upon review the producers refused to consider the initiative. It is far easier to excuse this or that, blame others and create viable scapegoats as to why others have failed them then it is to act. Only nine months after our White Papers publication their chronic overproduction dropped the oil price to almost negative $40 and refiners forced them to shut-in production. An argument they made against the Preliminary Specification that shutting in production would damage the formation. An argument that has now been proven to be false with no formation damage realized anywhere. Within two years of our paper's publication; was it acceptable to declare that shale would never be commercial and to just walk away from the catastrophe they had created, to then venture off into the clean energy industry that has proven never to be profitable? A place where accountability and performance are secondary to saving the planet, or what could best be described as bureaucratic nirvana. Or do they have a plan to make clean energy profitable? 

Why was it acceptable that officers and directors felt they could saunter off and forget about the serial failures they’ve created? Especially when there was a plan in place to make shale commercial. Who should hold them responsible and accountable? It should be the boards of directors. This behavior is unacceptable and reflects their history of walking away from all of their failures, not recognizing the need for profitability or understanding what is required to earn it. Oil & gas revenues will be needed to rebuild the industry from the damages that have been caused by these inactions. They’ll also be necessary to fund the future demands of the industry, not some far off unknown that producers have no basis of understanding about, capability, capacity or competitive advantage. Oil & gas’ diversion of revenues to clean energy is a fraud.

Summary of our Seven Constructs

We begin with a summary of the seven primary organizational structures in the Preliminary Specification that support the dynamic, innovative, accountable and profitable oil & gas producers and industry. These define the “what, how and why” of the Preliminary Specification from the highest level of its architecture. But most of all adopts a serious approach to the business focused on profitability everywhere and always. What would commonly be considered the behavior and culture of a successful business. 

The first Organizational Construct is the use of the Joint Operating Committee. Tying into the industry culture of the Joint Operating Committee and its seven frameworks enables an alignment between all aspects of the oil & gas exploration and production process. Creating a dynamic, innovative, accountable and profitable oil & gas producer and industry when the hierarchies compliance and governance frameworks are moved into alignment with the Joint Operating Committees legal, financial, operational decision making, cultural, communication, innovation and strategic frameworks. The results are an organizational speed, innovativeness, accountability and profitability over today's base case. 

Our second organizational construct is the implementation of Professor Paul Romer’s “New Growth Theory” around the implementation of “non-rival” goods. Oil & gas can generate real value through implementation of sharing and shareable infrastructure such as cloud computing provides and People, Ideas & Objects are doing by implementing Cloud Administration & Accounting for Oil & Gas. Professor Romer’s theories are integral to our organization and we have captured this in our name which is representative and derivative of his theory.

A variable cost industry based administrative and accounting capacity and capability replaces the individual producer based capabilities whose infrastructures are individually replicated throughout each of the producer firms on an unshared and unshareable basis. Therefore substantially reducing the individual producers and overall costs of North American oil & gas exploration and production overhead.

Specialization and the division of labor make up the third organizational construct recognized in the Preliminary Specification. In terms of generating value, these were the only means western economies have been able to build value for the past 246 years. Turning the administrative and accounting capabilities and capacities into industry based variable costs, variable based on profitable production, which will enable these non competitive attributes of the producers to achieve three critical features over today’s business model.

The reorganization of the producers accounting and administrative resources into our user communities service provider organizations turns all of the producers costs variable based on profitable production. Which brings about the ability for producers to shut-in unprofitable properties and therefore maximize their corporate profitability.

Variable overhead costs are covered by profitable production or never incurred. Overhead costs are therefore recovered in the current period and a “cash float” is created to pay these ongoing costs. (Today’s capitalization of overhead does not replenish the cash incurred for the current overhead costs for decades. And, hence the need for the past chronic and annual demands on investors for more investment capital.)

The structure of People, Ideas & Objects software development capabilities, our user community and their service provider organizations provide producers with an iterative and incremental means to improve specialization and the division of labor consistently over the long term. Providing greater industry throughput from the same resource base. 

Intellectual Property is the fourth Organizational Construct of the Preliminary Specification. It provides a legal framework that exists in North America that enables the rapid and effective development of the science and technology basis of the oil & gas industry. The brilliance of this American system is the root cause of their economic dominance. Using Intellectual Property which is part of the U.S. Constitution, seeks to educate, inform, allow others to stand on the shoulders of giants, to protect entrepreneurs and innovators work while they do the difficult tasks of developing the much needed solutions to the difficult issues industry face today. Another distinct benefit is it dramatically reduces the unnecessary costs of innovation by eliminating the “me too” and repeated organizational mistakes that are made when innovation is disorganized and unfocused. 

The reason People, Ideas & Objects et al needs to be concerned about the startup to junior sector as much as any other classification is purely for the fact the industry’s rebuilding will be done on an innovative basis. Innovation is the basis of the Preliminary Specification. It enables People, Ideas & Objects, our user community and their service providers to achieve our two opposing objectives of providing oil & gas producers with the most profitable means of oil & gas production everywhere and always, and providing consumers with the lowest possible cost of an abundant energy supply. We do this with our decentralized production models price maker strategy that ensures all production is produced profitably. Including Exxon’s, Shell’s and that startup oil & gas firm that began this morning. And to do so innovatively to ensure that the ever escalating costs of oil & gas remain affordable to consumers and the commodities production profile and reserves continue to expand by achieving profitable, North American energy independence, everywhere and always.

The sixth Organizational Construct that we’re incorporating into the Preliminary Specification is markets with the three specific markets that are dominant in the oil & gas industry. These are the Petroleum Lease, Financial and Resource Marketplace modules. Each seeks to provide a virtual representation of the market that exists in the industry with the facilities of a fully enabled ERP system supporting the activities and actions of the producer firm and Joint Operating Committee. When we’re moving from a centralized to a decentralized method of organization through enhanced use of the Internet. The dependence of the firm shifts from its internal use to a much greater use of markets. To enable these market facilities within the Preliminary Specification is a capability that enhance the producer firm, Joint Operating Committees and industry. 

The last Organizational construct of course is the Information Technologies themselves. People, Ideas & Objects are not offering the latest version of a new wizbang technology. We are focused on the business value of the oil & gas industry. And enabling that through the now mature technologies that have developed in the IT market space. The value we generate from IT is substantial and is noted here as a full Organizational Construct not only as a stand alone benefit but also as an enabler of the other six Organizational Constructs. 

The specific value from the IT Organizational Construct that we’ll bring about is expanding the Cloud Computing paradigm. Bringing about an administrative and accounting capacity and capability through our Cloud Administration & Accounting for Oil & Gas software and service. This eliminates the producer's high capital cost in terms of establishing the capability, with substantial technical difficulty and brings these down to a low variable cost incurred only when profitable production occurs. Extending the shared and shareable cost model throughout oil & gas administration and accounting. 

From our point of view these are the approaches that we need to take to begin dealing with the serious nature of the difficulties in oil & gas. This is the approach that will yield the lower cost and higher quality innovative and profitable producers everywhere and always that we’re seeking. Setting a foundation for continuous iterative performance improvement. 

OCI Revised Service Provider, Part II

 Oracle CloudWorld 2022 Conference

People, Ideas & Objects, our user community and their service provider organizations are focused on the North American oil & gas producer marketplace. It is here that we have developed significant value through disintermediation and the introduction of innovative business models. Covering off the scope of what the unique aspects of the oil & gas producers processes demand in North America. We have relied upon Oracle Cloud ERP to provide the solid foundation of tier 1 ERP which provides the generic business process management. What our service providers are implementing is a microservices architecture which we won’t define here other than to say it is consistent with Oracle's overall product offerings. During 2022s Oracle CloudWorld conference it became clear that similar perspectives regarding the introduction of service providers has been undertaken by Oracle and are now being applied to their generic business processes. Just as People, Ideas & Objects have a number of interfaces in the Preliminary Specification entitled “Gap Filling.” Oracle is now filling gaps within their generic business processes with a variety of service providers offering services with Oracle’s software. This creates significant value for the dynamic, innovative, accountable and profitable oil & gas producers from these generic business processes. 

One example used in the Oracle CloudWorld 2022 conference was the agreement between Oracle and J.P. Morgan Chase. Where the bank's credit card can be used in conjunction with Oracle Cloud ERP to process the business related charges of the employees on the basis of policies that determine if the cost incurred is eligible for reimbursement or not. If eligible, Oracle processes the employees expense report based on the eligible charges for the month, file it based on the policies of the company and reimburse the employee or pay the credit card, and post the costs to the general ledger. Taking milliseconds to file the company wide expense reports and reduce the time and costs of thousands of man hours of filing, approving, recording and paying these for each employee, for even the smallest of firms. These types of service providers are now being actively developed by Oracle and will enhance the dynamic, innovative, accountable and profitable oil & gas producer on these generic business processes in the same way that People, Ideas & Objects our user community and most particularly their service provider organizations have been designed to do for the oil & gas processes. 

An important clarification of the distribution of the oil & gas service providers is that we’re providing software and services to all of the oil & gas production produced in North America. Whether that is from Exxon or a startup it will not concern us. Just as it would not concern either Oracle or J.P. Morgan Chase as to the size of the firm using their credit card or the ERP software Oracle provides. 

Gap filling is the means in which specialization and the division of labor is undertaken. When a gap between two market offerings is seen, an entrepreneur can provide a product or service to fill that gap which expands productivity in society. In today’s advanced society we are constrained by softwares capabilities and the ability to fill gaps is the appropriate role that our user community, their service provider organizations and our software developers need to fill. One of the inherent benefits of this codification of oil & gas and Oracle’s generic business process management within Oracle Cloud ERP is that these processes become standardized and objective. A deviation from the firm's policies regarding expense report eligibility is clearly understood by the employee and the engagement of any unauthorized costs will be undertaken by the employee based on that knowledge. On a larger scale People, Ideas & Objects, our user communities service providers will be undertaking the full scope of accounting of the oil & gas producers properties. Whereas when the property is determined through the actual, factual accounting data that it is incurring a loss; the producers owning that property will know that property was assessed on the same standard and objective basis that all other properties were in North America. They will therefore be able to decide to shut-in that property with the clear understanding that they’ll be enhancing their corporate profits by not diluting them from that specific property losses, in addition to the many other benefits we’ve noted in the Preliminary Specification.

Another attribute discussed at the conference that has a distinct benefit to the oil & gas industry is the larger Oracle community that exists and is building through these initiatives. Oracle Cloud ERP is one of what are considered three tier 1 ERP solutions and is considered the premier system in many evaluations. Sales of their product these past few years have accelerated and the installed base of users and service providers that exist in that marketplace will be a net benefit to the oil & gas producers and all those that are associated with People, Ideas & Objects. We are not reinventing the wheel, we are applying the appropriate tools that have been tried and tested across other industries and throughout the globe that have built value. We are becoming part of a much larger user community and service provider population. I see substantial value in this for the dynamic, innovative, accountable and profitable oil & gas producers. Safra Catz the CEO of Oracle was quoted as saying.

• Bold is the winning strategy.
• Moving slowly is dangerous.
• Innovation is scary but not risky.
• Oracle is focused on their customer.
• Culture and performance move together. 

Sentiments that are consistent with our user community. 

People, Ideas & Objects, our user community and their service providers are employing what is now commonly referred to as a Software as a Service (SaaS) style of offering to the North American oil & gas industry in this Cloud Administration & Accounting for Oil & Gas and the implications of that are broad. The following are the areas of concern that fall under the SaaS model of delivery. And give a brief overview of how the specific user community and their service provider organizations will be involved in the development of the Preliminary Specification and then how it is they’ll support the industries producers within this model. Starting from the bottom and working to the top we’ll break down these services. The following diagram shows from a systems and services perspective what this consists of and who will address these areas of concern. These areas are what were traditionally considered the Information Technology domain. What People, Ideas & Objects consider to fall under the administrative role in the administration and accounting of our user community and their service provider organizations. From the book “IaaS for Dummies” page 8, John Wiley and Sons.

Data Center, Networking, Storage and Servers

These form part of the Oracle Cloud ERP offering and are supported by their regions located around the world. We have discussed briefly the method that we’ll be incorporating the Preliminary Specification within the Oracle Cloud ERP offering and will state at this point we are implementing Oracle’s recommended method. We are writing our Java application within the Oracle Fusion code itself through the Oracle Fusion Middleware Server. It will not be a series of separate modules that sit on top of Oracle Cloud ERP which has been the traditional approach. It is in this way that either People, Ideas & Objects or Oracle may update their respective code bases on their currently scheduled quarterly release without impacting one anothers code. Using the full value of Java’s inheritance, polymorphism and most specifically encapsulation. 

These four base elements of a SaaS are determined at definition by the user of the Oracle Cloud ERP offering. Selecting the data center, processor, storage type and all other manner of configurations are available. People, Ideas & Objects are employing a microservices architecture that will map the service provider's single administrative or accounting process to the domain of concern to one specific microservice. In the employment of specialization and division of labor we do not expect the service provider to be conducting the accounting involved in an individual process to also be involved in the IT related SaaS roles and responsibilities. These are mutually exclusive capacities and capabilities. There will be other members of our user community with their own service provider organizations that manage elements of the SaaS offering on behalf of the population of other service providers.

Hyperspecialization demands that these types of service providers be created to support the community of service providers in IT and other areas of specialized needs. What is also demanded in this overall community are service providers that will take on a role of coordinating the output of other service providers and conducting additional services upon these efforts. Consider how the month-long process, level of detail and broad scope of the Material Balance Report would need to come together. 

Virtualization

Within the Oracle Cloud ERP offering there is a registry service for the various images that we will have developed and published and those that Oracle have published. These will be deployed as needed by the service provider that may be configured for managing or deploying the “month-end” processes, etc. Virtualization is a way of life in the cloud and it is evolving at a remarkable pace with the future configuration and architectures of systems being derivative of these technologies in some form or another. The core of Oracle Cloud ERP, including the modules of the Preliminary Specification, will be run on centralized servers in a more traditional sense where these microservices will access their data and defer their heavy processing to. 

Operating System, Middleware, Runtime, Data and Applications

This software stack will have a myriad of configurations contained within the virtualization registry. Whatever the process needs to operate will remain in the image and the remainder of the operating system, database and others are removed to have a lightweight configuration for the sole purpose of conducting that one process. There will also be the main configuration where Oracle Cloud ERP and People, Ideas & Objects Preliminary Specifications core applications will be operational at all times. Service providers will deploy virtualized images of what they need when they’re needed. Oracle has taken their Linux operating system and most importantly their Database in the automated direction with machine learning technologies. By reviewing the logs of the system it can make changes to the configuration and tune the database as needed without the need for human intervention. The work of our user communities service providers that are administrators of the database will no longer need to concern themselves with table size growth as the automated database will drop tables when required, etc. It is here where our service providers and their ownership by the user community will be able to make the significant impact that the Preliminary Specification provides. The motivation behind the user community is that they’re business people who are building their own business based on serving the producer population with the objective of ensuring the most profitable means of oil and gas operations. They’ll have the motivation, the tools by way of access to the Preliminary Specifications Intellectual Property and our developers, but also exclusive access and attention of the producer firms in order to determine what is the best method to meet their objective of real profitability everywhere and always and how to rebuild their business in this vision. 

OCI Revised Service Provider, Part I

 Members of People, Ideas & Objects user community are licensed for a variety of rights and privileges in the development, implementation and operation of the Preliminary Specification. One of these includes the exclusive right to own and operate a service provider that will manage an individual process within the Preliminary Specifications software and deliver that to the oil & gas producers along with the services they will offer. The scope of the service providers, as a sub-industry, includes the administration and accounting domain of the North American oil & gas producers. Delivery of People, Ideas & Objects software with their services to the producers, combined with the role of their user community member leading the service provider, who has exclusive access to our software developers, gives these service providers an environment where they would be able to innovate and iteratively change their managed processes software and services to meet the producers changing conditions. 

Cloud Administration & Accounting for Oil & Gas is the sub-industry that we’re providing in this change. Taking the concept of Cloud Computing and applying it to these processes is appropriate as the same issues, opportunities, cost reductions and efficiency exist and are available through this reorganization. First the service providers are the key change in making all of the producers' costs variable, based on profitable production. Enabling them to shut-in any unprofitable production and ensuring that the industry remains profitable everywhere and always. Service providers are therefore the means to generate the critical elements of the Preliminary Specifications value proposition. Reducing the producer's individual overhead costs incurred. When each producer is tasked with building, maintaining and operating the exact same, non-competitive attributes of administrative and accounting capacity and capabilities, on an unshared and unshareable basis we have the secondary reason for a chronic lack of profitability in the industry. Specialization and the division of labor are able to more effectively deal with the complexity of these environments when they are also done on this shared basis. Our dual approach to the resolution of this loss of profitability will ensure that consumers are provided with the lowest possible costs available and continue to be provided with abundant, reliable energy. 

An operational service provider will be responsible for the management of an individual process on behalf of the North American oil & gas industry. The dimension of the work would be breathtaking in terms of understanding the scope and scale of the work that is undertaken each month. Without getting into the details of a specific process, and speaking only of the generalities, I want to discuss the scope and scale, and the details of the “what,” “how” and “why” of a service provider in the People, Ideas & Objects Preliminary Specification. 

Having as the process domain, the entire North American producer population to manage would be a difficult and challenging task to grasp initially. The approach to the process would be fundamentally different from that which is currently done in a junior oil & gas company or ExxonMobil. Even they don’t come close to that scale of the proposed volume of transactions of a service provider. Therefore the need to design the process within our user community from the basis of a new method of organization will have already been determined as a result of the service providers owners early participation in the People, Ideas & Objects user community. Our user communities research will have determined the level of specialization and division of labor for the people that need to be involved in each process and the tasks that will need to be done. Both individually and from a global perspective in terms of application functionality. Defining what the computers and what the people can each do best. As we've noted here many times before, computers are good at storing data and processing information. People are good at making decisions, collaborating, innovation, ideas, planning, creativity, design, leadership and problem solving to name only a few. This new specialization and division of labor between computers and people will be the base that a service provider will use in this new oil & gas environment. It will be one of the things that is used to enhance the service to ensure that the oil & gas producers continue to achieve the most profitable means of oil & gas operations. A new specialization and division of labor that will provide better services and lower costs to the producers and reveal new ways in which to do business that can add value to their organizations. 

Participation in our user community will continue for the service provider principals as a result of People, Ideas & Objects establishing the software development and user community as permanent capabilities in the North American oil & gas industry. The need to make changes in the defined specialization and division of labor must be initiated in the software first and foremost. Society in general is now defined and supported, and constrained by the software systems that we use, particularly ERP software. Any change that we make in our organizations must first be made in the software. As the principal members of the service provider sub-industry our user community will continue to ensure there is the ability to affect the changes necessary through the People, Ideas & Objects software development capability and our user communities commitment and vision. This feedback from the service providers is one of the primary reasons that there will be constant development work being done on the systems and services provided by this sub-industry. All to the benefit of the oil & gas producers enhanced profitability based on the user communities charter. 

In terms of how People, Ideas & Objects will determine the allocation of specific service provider licenses to which member of the user community. The user community members' contributions that are made during the development process will be the determining factor. No one is going to go through all the submissions and be able to allocate the appropriate license to the right individual. That would be a superhuman exercise and not possible. It is however well within the scope of what Artificial Intelligence is able to determine. The AI algorithm might review the Final Specification and determine the key attributes and the contributions made to the system and by whom. It might then be able to go back and determine the first mention of these key contributions and the individual who originated it. It might then review the sum of all of the users contributions, compare those with the other users and their areas of specific idea generation. Then apply the known processes under management within the Final Specification and award the licenses for the management of those processes to the highest and most valuable contributor of each individual process in terms of the ideas and contributions that were made. It sounds easy when I put it like this, however, we will have a budget set aside for the development of this algorithm the moment People, Ideas & Objects are funded. That way by the time we have to apply the AI to the situation it will be tested and the bugs worked out. The user community license provides each user community member with the exclusive right to manage the domain of a process as a service provider. There may be multiple owners of a service provider and user community members with interests in multiple service providers. These AI recommendations and the algorithms development will fall within the domain of our user communities responsibility.

It is on the basis of changing the relationship of how the producer accesses their administrative and accounting capabilities that we are able to enhance the profitability of North American producers. This will be done through the Preliminary Specifications decentralized production model. This model provides the capability of producers to implement a “price maker” strategy that will be a key competitive capability in this shale based era. This is enabled by the producer shutting in any unprofitable production. Reducing the amount of the commodity on the marketplace and therefore ensuring the commodity is valued at its marginal price. At the same time, during a period that any production is shut-in, the reserves are held for a time when they can be produced profitably. The producer will not incur any production or storage costs as the reserves provide a much lower cost alternative for them. The property records a null operation as there are no revenues, royalties, operating costs or overhead costs. The producer records the highest possible level of corporate profitability when unprofitable properties no longer dilute the profits of their profitable properties. The lack of overhead costs being incurred on shut-in production is a feature of dealing with the administrative and accounting capabilities through these service providers on an industry wide basis. When the property is shut-in a service provider will receive no data or information from the People, Ideas & Objects task and transfer network in the Preliminary Specification that will otherwise cause them to incur any administrative or accounting task or generate a billing to that Joint Operating Committee for their services that month, as no services were rendered. 

The task and transfer network is a part of the Preliminary Specification that will be developed in a variety of different modules. It provides the high level automation that is necessary for the service providers to efficiently process the oil & gas producers operations. The task and transfer network provides for the automation of the processes and a key toolset of the service provider. Just as specialization, the division of labor, standardization, objectivity and cloud computing are key toolsets of the service providers in establishing and providing their Cloud Administration & Accounting service for Oil & Gas. It is the application of these tools, and others, that are the focus of the service providers in providing the oil & gas producers with the most profitable means of oil & gas operations. It is the service provider that resides at the point of discovery and conflict of the producer's administrative and accounting operations. It is there that they can improve and enhance the process through this substantial toolset that they have at their disposal. Key within that toolset is the People, Ideas & Objects software development capability and the service providers direct participation as a user community member. And it is in that way they can affect real change to ensure that their producer clients are provided with the most profitable means of oil & gas operations. Automation will be invoked at high levels to ensure that the most effective and efficient operations are provided to those producers participating in these developments. Relieving the administrative and accounting resources to pursue higher level value added opportunities. Reduction of costs in this sense is a worthwhile pursuit, not from the point of view of the reduction of the costs itself. Reduction of costs implies high levels of automation are in play. Automation does not just reduce cost directly it does so indirectly through the reduction of error. Reduction of errors reduces time. What admittedly is becoming a more critical resource as we proceed through this 21st century economy.

Producer officers and directors are well versed in developing viable scapegoats to justify not implementing the Preliminary Specification. Their most successful argument has been the price maker strategy is collusion. What has been standard business practice in all other industries since the time of the great depression is deemed to be collusion. The results of each property's operations for the month are presented to the producer in a complete set of actual, factual financial statements. This is enabled through the fact that service providers will be charging their costs of administration and accounting directly to the Joint Operating Committee. Monthly allocations for depletion on the basis that oil & gas needs to begin competing in today's capital markets. Determining which properties are profitable and shutting in any unprofitable ones. And begin to account for passing the profitable productions capital costs on to consumers. Why would anyone in any industry continue to produce any asset unprofitably? To refute the claims made in the Preliminary Specification producers have come up with many excuses and reasons why they can’t, won’t and will not ever proceed with the development, implementation and reorganization of the North American oil & gas industry on the basis of profitability everywhere and always. The destruction they’ve authored is now permanent and in 2022 we began to see that the rest of the global industry is active whereas North American producers seem to have been forgotten. However, North American based producers only wished their actions could be forgotten. It’s not that they’re being forgotten, it's that everyone remembers what they’ve done.

I raise this point as many of their arguments on the details regarding the Preliminary Specification could be valid, if we were not to consider them. These arguments are however specious on their face and in theory could potentially provide them with an endless supply of reasons not to do anything, which seems to form part of their overall “do nothing” business model. The Preliminary Specification is derivative of the research I conducted and the experience that I’ve gained in working in oil & gas. No one individual in the world has the wherewithal to make a pencil. The same I would assume is the case in oil & gas. That is why we are user community based, and our user community members are the principals behind each of the service providers. The same pencil analogy applies to each of the individual user community members, however collectively we aim to cover off the full spectrum of producers administration and accounting needs with the assistance of producers input. We’re offering the solution to the problem we’ve identified as a lack of a dynamic, innovative, accountable and profitable North American oil & gas industry. When producers fund People, Ideas & Objects they’ll have the appropriate motivation to participate by having put some skin in the game. And therefore prove to their shareholders and bankers that profitability is important to the industry. Then ensure that the efforts they make are what are needed to resolve oil & gas exploration & production related issues and opportunities. We are developing the Preliminary Specification, not a remake of the failure that we see today. Therefore it’s necessary for producers to bring us their issues, not their solutions. 

We’ve seen this behavior throughout the producer population these past four decades in how they’ve worked with the service industry. Sitting high atop the industry on Caesar's throne and issuing their decrees to those with a simple thumbs up or down gesture. However when people are bringing solutions to the problems that they see in producers business it might be a better approach to show them the respect they deserve and see what it is they have. Share the producer's concerns and work together to have them solved. In an innovative industry the final solution is rarely found on the first iteration. It demands work, and most of all the hard work of solving problems that others are doing and bringing to producers about the issues and opportunities they see in the producers business. To continually cast them aside with a thumbs down is the kind of treatment that will eventually be shared with the producers in times such as 2022 when the industry is profitable, possibly, and they’re being offered nothing. Much in the same way that investors today only believe in producers' dividend checks. This will demand efforts and financial commitments by producers and it's here that the belief in the status quo is proven to be unjustified. 

To call the service providers a sub-industry of the oil & gas industry is appropriate based on their scope and scale. Replacing the industries administrative and accounting capabilities which are housed within each individual producer involves many individuals. And in terms of costs it is estimated that the producers incur over $10 billion in G&A costs across North America that would be reallocated as revenues to the service providers. A significant change in the way in which the oil & gas industry is operated. Incremental value is generated based on the ability of the service providers to exercise real economic growth through the toolset of specialization and the division of labor. Providing enhanced performance throughput from the same $10+ billion in G&A costs. And unquantifiable savings as a result of building and sharing the costs of one non-competitive attribute of the industry based, variable cost, administrative and accounting capability and capacity instead of each producer involved in providing their own unshared and unshareable capability in-house.

Arguments against this change are self-serving in nature. Suggesting People, Ideas & Objects software and services scope and scale is too broad yet the scope is well within their internal domain of what they can provide. Through the compliance requirements of the various government agencies, the sophistication of society that we find ourselves in and the needs of the oil & gas producers partners. The redundant, unshared and unshareable building of administrative and accounting requirements of an oil & gas producer are the secondary cause of the lack of real profitability in the oil & gas industry. Long ago these demands were instrumental in eliminating the startup and small oil & gas producers from commercial operations. The road to success for producers was their capacity to raise capital, not their geological or engineering capabilities. We’re not far from the point where these demands on all producers are exceeding the expectation of what overhead costs are reasonable. The high throughput production model, the business model industry is structured under, demands the producer to produce at capacity at all times in order to cover their fixed overheads. Production at capacity is leading to the many commodity price collapses we’ve seen since the first oil price collapse in July 1986 and are creating systemic losses that will lead to the demise of the industry at some point in the very near future. If overhead is not a material issue, why do they continue to destroy the commodity prices just to cover them off?

It is the lighter weight of the producer organizations under the Preliminary Specification that enables the desired characteristics of being dynamic, innovative, accountable and profitable. Having the administrative and accounting provided by the service providers has left the C Suite executives, the engineering and earth science resources of the producer firm, the land, some legal and support staff. With this smaller footprint, no matter the size of the production profile, the producer firm is able to focus on their key competitive advantages of their land and asset base, and the coordination of the markets earth science and engineering capabilities. Having state of the art administrative and accounting service providers is what they’ll have on a variable service fee basis. Variable based on profitable production. Accessing this industry wide Cloud Administration & Accounting for Oil & Gas capability and freeing each individual producer from the onerous and costly tasks of building the unshared and unshareable administrative and accounting capabilities they've created in-house. 

This will enable the producers to be able to focus on their business of generating greater value for their shareholders. Why we need to focus on generating value and profitability for shareholders should be evident to everyone now that we've been witnessing the performance of the status quo establishment's interpretation of what is priority and the devastated North American oil & gas landscape that remains. 

This Cloud Administrative & Accounting for Oil & Gas capability will accommodate changes in the way in which producers do their work. Through user community participation and the People, Ideas & Objects software development capabilities the service provider can enable change in the software and processes to increase the productivity and throughput of the producer firm. Changes made within the oil & gas producer itself, and changes to enhance the producers key competitive capabilities. These can be handled by the service provider to ensure that they’re adopted within the processes that producers use. Enabling a further specialization and division of labor within the earth science and engineering disciplines. Something that is suggested here as necessary in order to address the shortfalls in these critical resources over the mid to long term. 

The world is a dangerous place to live not because of the people who are evil but because of the people who don’t do anything about it. 

- Albert Einstein 

The scope and scale of what it is that People, Ideas & Objects are undertaking here is comprehensive. That we would aspire to undertake this in the normal course would be unheard of. I don’t believe we’re in an environment where we’re anywhere near normal and what is accepted as normal today is unacceptable. There are serious consequences now as a result of what the producers have authored. Houston can barely make decisions as to which business they’re in. They were once the center of the global oil & gas industry, it’s difficult to suggest how they fit in today.

Time is now of the essence. Time is wasting and there are consequences of actions and inactions by good people that are having much greater implications than we’re realizing when they subsequently occur. As much as I belittle the status quo it’s obvious to everyone that inaction is in their DNA. We can't and should not expect anything from them. They’ll continue to deny People, Ideas & Objects the development resources necessary to proceed. However that is not a reason to sit and watch this tumble further downwards. There should be no doubt of the need to rebuild the industry in my opinion. It will be far easier to rebuild than trying to compromise and deal with today’s failed organizations and end up with something that will not work. 

I have defined the market for our user community and their service provider organizations to fall within the domain of the North American oil & gas administration and accounting roles and responsibilities. Our objective is to provide the dynamic, innovative, accountable and profitable oil & gas producers with the most profitable means of oil & gas operations, everywhere and always. The areas covered by the service providers include the operational, exploration, land, IT and traditional areas of administration of the producers. And of course the accounting and regulatory processes associated with these. This is a data rich environment and the need to have these captured in an ERP system are paramount. Today’s process of feeding multiple systems with the same data is due to the fact that these systems bridge different domains and conflict between the various empires of the producer which is one of the key impediments to the lack of integration in the current systems. These have been implied and well understood with regard to our user community.

Would've, Could've, Should've

The only thing necessary for evil to triumph in the world is that good men do nothing.

- Edmund Burke

It’s times like these that People, Ideas & Objects message will be getting confused. What we’ve provided the industry is an understanding of our business model and its application to the oil & gas producers. Nothing in that business model or our approach has or will change. We see the level of damage that has been realized in the industry as devastating. Higher commodity prices are a reflection of the inability of producers to meet the needs of consumers. Officers and directors destroyed their capital structures, forcing their investors and bankers to stop funding their excessive and highly specious demands. They highly abused the service industry to the point where all the value has been hollowed out of that industry and the ability of the producers to function today is at a level that is woefully inadequate and they are unprepared to meet consumers future needs. Excuses, blaming and scapegoating as to who’s responsible has always been their solution, only now do the officers and directors realize they’re not being trusted, believed or listened to. What we find today is the chronic complaining that’s occurred over the past decades continues. Now it’s that investors need to provide them with “more,” again, in the form of relief of having to pay them dividends. That they “could do better, if only…”

Our message has been directed at the officers and directors and that is due to the fact they have the responsibility, authority and are theoretically accountable to act. Our message is not fit for public consumption and we’ve never considered that it would be part of that arena. Since the producers are now bringing their investors in to be the scapegoat we can see the writing on the wall that their ways are permanent and they’ll grasp at anything. We have asserted that they were never operating profitable operations. If they were operating profitable operations they would have been providing their investors with far greater returns than what has occurred in the past year, every year for many, many decades. The cash flow they’re receiving today is impressive when it's used to fill the officers and directors pockets. There are far more uses for this cash beyond just the personal needs of those in power. The cash being generated today is woefully inadequate to deal with what I would call “normal operations” and certainly nothing in consideration of the rebuilding effort ahead of them. In terms of dealing with the situation at hand and taking constructive steps towards resolving it, it's now the investors fault? I can see the day when I’m sure it would be our turn “for making prices higher.” These beginning paragraphs are my attempt to capture my message in a two second sound bite to counter these points.

For decades I’ve been vilified and ostracized by these officers and directors who felt that my message of making them profitable in the real sense, everywhere and always made me the devil incarnate. If only they weren’t obstinate and stuck in their ways they might begin to think to themselves “what could have been?” I’ve put the November 24, 2022 deadline for them to act to fund the Preliminary Specification. What happens after that doesn’t concern me when I’m potentially the next viable scapegoat as to why the industry is charging such high commodity prices. They’re not providing leadership in a competitive market, they’re fools.

Third quarter 2022 financial statements of the producers reflect a somewhat shocked revelation beginning to come over the officers and directors that making money as a business is a little more exciting and interesting than beating drilling companies up for using too many bits on the last well. Cost control is not a business model and to break out of that miniscule mindset has been the consequence that society has the pleasure of experiencing this winter. I’m sure the officers and directors will be expecting an appreciative thank you note for putting everyone in this situation. The business today is not healthy and they’re beginning to see how unhealthy it really is. No one is answering the phone and everyone else doesn’t care what they do. Others have been burned too many times before. The irony I see is that they’re catching a wisp of what it is that I’ve been talking about as the business begins to perform at about 2% of where it should have been all this time. They’re realizing they messed it up and could have had it much better all this time. They’ll be thinking it’s time to find a new batch of scapegoats.

Whom is it that has the understanding of the issues that affect the North American oil & gas producers? Whom is it that has “a” solution that directly deals with these issues and makes the oil & gas industry the most profitable means of oil & gas operations everywhere and always? The last question reflects who on November 25, 2022 is not answering their call. I’ll hold to my deadline of the 24th but the probability that they fund our budget in the next 2 weeks is as laughable as I can suggest. I’m not going to set myself up for a public relations mess by individuals who can’t take responsibility for anything or do anything outside their own personal concerns. I see now that there’s a different approach, although limited, that has the implementation of the Preliminary Specification as it stands today, with our user community and their service provider organizations configured with Oracle Cloud ERP as Cloud Administration & Accounting for Oil & Gas. I’ve decided to pursue that instead while the consequences of the officers and directors destruction is played out in real time this winter.  

What I do know is that it is these same “officers and directors” that claimed to have innovatively developed the shale technologies. It was these “officers and directors” who claimed to have created the great shale revolution. We know now that’s not true. It was those in the field who fought for a decade or more to have the coil tubing and packers accepted as technologies. They too were ostracized and vilified for their efforts. We do know now that it was the producer “officers and directors” that frittered and wasted what was a spectacular endowment of shale wealth and destroyed it with nothing to show for it now. Took an industry that created great value in the past and trashed it to a level where it’s useless at the most critical time that society needs energy. Those shale reserves were produced unprofitably and these officers and directors had the audacity to say they’d never be commercial 18 months ago in order to shift their business focus to clean energy. Shale’s deliverability appears to have started its inevitable decline due to this abuse. It can’t be augmented in the short term due to the service industry's destruction, authored by producers. There are no plans to deal with these issues. And to paraphrase producers response “consumers shouldn’t look to us to solve this.” They absorbed hundreds of billions of investor dollars over the decades to “build their balance sheets” that today are just as susceptible as any other paper is to the shredder. A time when our enemies thank them for providing them with the ultimate weapon of war. The producer officers and directors who took the investors billions on top of all this other wastage and used it to replace the custom marble in their homes and villa kitchens each quarter. (Just couldn’t get that color quite right.) These are the consequences of their claims of innovativeness, profitability and the quality of their management. This is their legacy.  

Here’s a hint for those officers and directors of the producer firms. This is only what I feel the next step will be and it is well beyond what a new business model such as the Preliminary Specification can do. After the 25th of this month People, Ideas & Objects can’t and won’t help producers with the consequences of their actions over these past decades as the acceptance in the market goes from what’s called obedience to revolt. 

The only thing I can and will do is make sure that people understand that I was here looking to provide a solution to the exact problem they’ll be facing this winter. And it was producer officers and directors who laughed, kicked me out of the industry and tried everything they could to silence me. That it was they who were endowed with the authority and responsibility to ensure this didn’t happen and now need to be held accountable. That they had every opportunity from August 2012 to November 24, 2022 to resolve what was clear to them yet chose to do nothing out of personal self interest. I’ll consider this my reward for these efforts and be satisfied with the work that I’ve done to stop this foolishness and thankfully did not participate in the making of this disaster. 

OCI Revised User Community Vision, Part III

 Intellectual Property

Back in the late 1990s I was trying to determine what asset would be the most valuable in the future. I’d always put my efforts into software and was asking if that was adequate for the future or was there something more. While contemplating the next stage of this adventure I realized that Intellectual Property was the only real asset that would exist in the 21st century and the only real asset that would provide owners of any asset with any value. Today the economic environment that exists doesn’t offer anything of the type of reward that Intellectual Property does, in my opinion, and most particularly one that is inflation and or interest rate desensitized. In the future all business will be based on some form of Intellectual Property.

At People, Ideas & Objects we believe that in order to obtain gainful employment people will need to have some form of Intellectual Property in order to do their work, or to better define this, have the right to do their work. This can begin to be acquired through the education and experience one obtains, however they’ll also have to have one of three levels of access to IP. The first is the outright ownership of their own Intellectual Property which are commonly known as copyrights, trademarks, patents and to a lesser extent trade secrets. The second is a contractual arrangement where access to others Intellectual Property is licensed to the individual or firm they’re responsible for. And the last will be as an employee of a firm that either has the IP or is licensed to use the IP. These three tiers of IP are distributed throughout People, Ideas & Objects, our user community and their service providers in the following ways. 

I myself am the beneficial owner of the underlying copyright of the Preliminary Specification and its derivative works. I have licensed People, Ideas & Objects to commercially develop the ERP application, communities and all its associated needs. Our user community members are direct license holders from People, Ideas & Objects, as either individuals or as representatives of their service providers and are licensed to prepare derivative works. They also sub-license on a run-time, read only basis the Intellectual Property that our user community member has licensed access to, which is unencumbered, to the staff they employ in their service provider organization. 

In order to ensure that this IP is held and developed in pristine condition. Our user community members are paid by People, Ideas & Objects for their contributions in the development of the Preliminary Specification and other derivative works such as the software code and binaries. It is in the process of this payment that we are purchasing the IP from each of our user community members in order to ensure that the entirety of it remains whole, and most importantly, available to our user community to prepare derivative works. If this was not done we would end up with an unworkable model due to the claims of individuals and trolls who would hold up the profitability of the oil & gas producers for their own monetary purposes. If it is that you have your own Intellectual Property and feel that it should be recognized then the market is available for you to do so. 

There are a number of conditions that will need to be met in order to participate in People, Ideas & Objects user community. First we are seeking to provide the North American oil & gas producers with the most profitable means of oil & gas operations everywhere and always. A task that enables others in the rebuilding of the industry and sub-industries themselves. That is our objective. We are not in any way providing producers with anything to do with clean energy. The revenues of our user community and their service providers are derived from the oil & gas production. Therefore the license precludes user community members and their service providers from operations outside of the oil & gas realm. It will also preclude them from working in any area other than the domain of oil & gas ERP systems of People, Ideas & Objects, our user community and their service provider organizations. Our user community is our primary competitive advantage and is therefore not accessible to our competitors or others in the greater oil & gas, software industries or elsewhere. Our focus is exclusively on the ERP product licensed for the oil & gas producers to maximize profitability. Maximizing producer profitability is seen as an unending task. 

We need to consider the possible contamination of this IP in a scenario that would disrupt this community. If a user community member or its service provider was using this IP, or augmenting their efforts with other software providers or vendors products from outside of our community. This would be a can of worms that would demand People, Ideas & Objects terminate our user community license in order to protect ourselves from any allegation or potential claim of contamination. In a world where Intellectual Property is the domain where all value is generated. In situations such as we have, where it’s not enough to own the oil & gas asset anymore, it’s also necessary to have access to the software and services that make the oil & gas asset profitable. The basis of this industry wide profitability is sourced from the Intellectual Property that is produced through this community. Value of this magnitude needs to be protected from the potential of incidental and minor actions that would appear to be non-consequential. However could be based on the actions of others outside the community who were looking to leverage the work of the community in a manner that was unproductive. Our safeguard here is to state the risk to the community of a participant that may innocently fall prey to these actions by advising them of the consequences in advance. That the loss of the license is something that could be communicated to our user community members staff within their service provider organization and those within that organization would be wise to the risk and consequences and ensure they and their service provider did not fall down that path. Sabotage by an employee is a different, criminal act that has its own remedies and would not fall under these provisions. 

Membership in our user community will be maintained in the initial development period on the basis that it’s a privilege and not a right. We need to have an environment within the community where the performance of the community is maintained at the highest levels. If we have the solution for the greater oil & gas economy, a matter of opinion, then we have a commensurate obligation and hence the need to build a highly performative community. We therefore need to start by establishing the means in which our user community's performance is the overriding requirement. Methods will therefore be implemented to ensure that the lack of contributions, free riding, trolling etc are to be dealt with effectively. What I am suggesting is, that in either of these or other possible scenarios the licensing and management of the IP in the structure of our user community ensures that the community’s leadership can manage who contributes. If the community member is not able, free riding or implementing a value proposition inconsistent with the overall objective, our user community leadership, under the license provisions will have the means in which to terminate the license. The right to cull the herd will be a method that our user community will be able to ensure that quality and performance is achieved and obtained in each and every corner of the work they’re doing. Vetting is not always able to determine the best candidates. A successful implementation of the IP and software in the industry is necessary in order for our user community and their service provider organizations to succeed as organizations.

Those that contribute are compensated appropriately and will need to perform to ensure producers are able to rely on quality ERP systems. Members of the community themselves will be able to know reliably they will not have to tolerate the inappropriate behaviors and antics of those that haven’t fully participated. They’ll also not have to carry any “dead weight” with them. If you want to belong to a high performance community, these are the methods that have been used to establish other high performing organizations. Success must be obtained when the stakes are this high and the dependence is wholly upon our user community's performance. The mitigating strategy for our user community members is its part time participation during initial development and prior to the initiation of their service provider organizations. We are building upon the depth of industry knowledge necessary to ensure the full scope and scale of the application is conducted correctly and in innovative ways. There is an opportunity to determine if you qualify, can participate, if this arena is your calling where you're able to make a contribution and a difference. There are risks, and I have worked to ensure that none of these are incurred unnecessarily, however we should all agree the responsibility we have is substantial and the role our user community members have in this task is critical. 

This is a challenging and difficult environment where the task appears to be impossible for many. And then it will attract exactly the kind of people that will perform in an environment such as this. One of People, Ideas & Objects first tasks is to establish the leadership group, which are full time positions. Then they’ll be able to take our user community members we have and recruit the many, many more that will be needed to cover the full needs of the applications scope and scale. 

Our User Community Tasks

As a group, our user community has specific tasks that need to be completed in the first iteration of our development. These only apply to our initial development and will change once the software is operational in the marketplace. If we look at these tasks from a global perspective we are taking Oracle Cloud ERP, applying the vision of the Preliminary Specification, developing, integrating, servicing and supporting that across North American oil & gas. In terms of technical risk, I assess the project as moderate, we are using proven technologies on a large scope and scale. In terms of business risk we see the North American producers failing in their primary objective of supplying abundant supplies of affordable energy to the consumer. A failure on many levels and therefore our level of business risk has to be none. We must have this completed successfully, in my opinion. Ditto for the market risk. Our vision within the Preliminary Specification is comprehensive and has the benefit of unifying our user community in the appropriate direction for successful implementation. And most importantly we are user community driven and therefore quality software.

The first step in this initial development phase is therefore to implement the model that is the Preliminary Specification. This vision provides the broad outline of what and how the applications need in order to operate. The details of how each individual's work needs to be handled is the work of our user community to fill in, define and ensure that our developers provide you with the systems that you want and need. For example, if you are working in an area where the Material Balance Report is part of the domain of your work. You will collaborate with others to determine what is required, ensure that it’s correct and iteratively, and innovatively develop the functions and processes in ways that meet the overall vision that will be managed by the software and your service provider organization. We are capturing the manner in which the industry needs to operate profitably everywhere and always which includes everything that is on the table, exception noted below. Ensuring it is the operational, administrative and accounting manner for the future we’ll need and redefining it around the Joint Operating Committee, the other five Organizational Constructs and the vision of the Preliminary Specification. 

What we don’t need in this first iteration of the Preliminary Specifications software is to have any innovation on its business model completed by our user community. What exists today in the vision works in terms of its global perspective. It may appear that in some small areas it might be better to change an element of the business model to accommodate some other condition. What we will not know is if this change upsets the global perspective and puts the overall vision out of sync in terms of its operational capabilities in other areas. The first iteration is not a time in which to innovate on the business models contained within the Preliminary Specification. This may be introduced in the second phase of the developments, when the software is operational in the market. There will be substantially more that needs to be done that is incremental to the traditional software development process that we need to ensure we don’t bite off too much of a task to begin with. I would point out that our initial needs will include such one time events as a familiarity with Oracle Cloud ERP and the other people involved in our user community and initiative which would be demanding much of our time and energy. Focusing on what works from a business model point of view would provide a consistency in terms of the understanding throughout the industry.

Once we have the software fully operational in the marketplace then we’ll be able to innovate on the model, and determine further interactions and implications within the various domains of our operation. We are focused on providing the oil & gas industry with a dynamic, innovative, accountable and profitable oil & gas producer everywhere and always. This requires that constant change will be part of our developers, user community and service providers operations. People, Ideas & Objects Revenue Model is structured to generate revenues based on changes in the software which we’ll provide to oil & gas. Services revenues fall under the domain of the service provider organizations individually which are managed by our user community members who own and operate those concerns. That is the dynamic that keeps this community moving forward. Otherwise software has the effect of becoming concrete to an organization as it is the case today. Turning it into an unchangeable beast. If an organization needs to change, it is the software that needs to change first. And in order for the software to change, our user community or producer firms have to initiate the changes through these mechanisms we provide to affect that change. And in People, Ideas & Objects our user community has obtained that power through this user community vision.

What we can do, and what brings about the greatest value from the model is exploring, innovating and implementing on the interactions and implications of our model. When we move to the Joint Operating Committee and the other Organizational Constructs of the producer and industry we are changing every aspect of their operation, administration and accounting. Including within the service industry. Not much will be left unchanged in terms of the effects of implementing the Preliminary Specification. The interactions and implications are where the dramatic value will be generated for the various stakeholders in our targeted market. It is here that I expect to see the value of the model be in the forefront of our user community's search for delivering tangible value. Upon commercial release we’ll have a solid foundation in which to innovate on a known - known in terms of the Preliminary Specifications business models.

Who Will Work Within Our User Community

It's true that not everyone qualifies to work within our user community. This applies to both their leadership team and the general community. We’ll be looking for certain individuals that are unique in their skills and knowledge of the oil & gas industry. That is a given. And the diversity of those skills will make up the entire scope of the oil & gas industries administrative and accounting needs. It is these skills and understanding that are the primary concern that need to be addressed in the work that is done by our user community. The ability to analytically break down the processes and design new innovative and effective ones that are consistent with the Preliminary Specification is not something that will be easily done. That is why we have costed this work in our budget at the $345 / hour rate for our user communities participants. We are looking for people of that caliber. Recently Mr. Tom Hood, CEO, Maryland Association of CPA's published a list of 7 skills that clearly identify what is required.

As I noted the primary concern is that our user community participants be trained and experienced in the disciplines that fall within the administrative and accounting areas and their work experience fall under the greater oil & gas economy. However, we expect that there will be a strong element of Information Technology aptitude that will be inherent in their skill set. Particularly in the two areas we have mentioned before of relational databases and Java. Having a good working knowledge of these two specific technologies, on top of your current skills, will make the design and development of the software, which will be your job as a user community member and service provider, that much easier and better. The importance of this IT aptitude will make a significant difference in the quality of the People, Ideas & Objects Preliminary Specification in many different ways. Today Oracle provides an "Always Free" tier of their Oracle Cloud Infrastructure (OCI). This is available to everyone and anyone and I would encourage user community members and prospective members to sign up to be familiar with the basic structure of our systems offering. 

First it will permit you to better understand the issues and opportunities that the technology provides. What is possible to you as a result of the Oracle database, its deployment in a cloud computing environment and Java, which now includes Oracle Fusion Applications the base of the Preliminary Specification, from a conceptual level offer interesting new perspectives and dimensions in ERP software. To add these to your tool kit and be able to employ them, either to use them as a service provider, or to ensure that the producers who use them are provided with the most dynamic, innovative, accountable and profitable means of oil & gas operations, should be of concern to all within the community. There is no demand here to write code at any time, that is not what we are specifying. It is the conceptual framework of these technologies that need to be addressed.

Secondly your ability to communicate with the People, Ideas & Objects developers in their primary skill set will be necessary to enhance the communications between yourself and them. It is easier for you to understand the basic elements of these concepts in relational theory and Java than it is for them to comprehend the understanding of the oil & gas industry as represented in the entire user community. Therefore to enhance the communications between the developers and our user community it is by far the easiest for our user community to speak an elementary level of the language of the developers. As there is no way in which each developer is ever going to fully comprehend the scope and scale of the oil & gas industry contained in our user community. Particularly since no one else carries that body of knowledge around individually.

This understanding of the technology may take four or five university level courses in order to acquire the type of understanding that I think is necessary. We are seeking to communicate effectively with developers. Think of it as an investment in order to earn those handsome hourly rates and resolve industry issues. The thing about providing the oil & gas producers with the most dynamic, innovative, accountable and profitable means of oil & gas operations. Is that you are able to prove substantial value propositions such as what we have. And therefore, as a result everyone benefits monetarily.

Some Technical Points of Interest

Now for the relational database geek in all of us, I provide the videos of the last number of keynote presentations by Larry Ellison founder of Oracle Corporation. These are technical. Understanding the basis of relational databases and the Java Programming Language from a high level will provide any participant in our user community with a better knowledge and understanding of how the system is put together. And the best place to get that understanding is from C. J. Date, An Introduction to Database Systems

Here are Larry Ellison’s last number of keynote addresses, all are must see viewing for members of our user community.

OCI Revisions to User Community Vision, Part II

 Leadership in Our User Community

The first element of our user community in terms of its needs is leadership. Effectively our user community is a separate organization that is independent of both People, Ideas & Objects and the industry itself, driven by its own vision, purpose, community and leadership of providing oil & gas producers with the most profitable means of oil & gas operations. Although our user community will have People, Ideas & Objects as its sole source, by license, of part-time user community participation revenue, user community members are the principles in the service provider organizations who provide the accounting and administration process management through the delivery of our software and their services. Our user community members will have their service provider(s) as their primary source of income and value generation. It is People, Ideas & Objects objective to focus on our organizations competitive advantages of our user community, research and Intellectual Property. Therefore the leadership in our user community is an aspect that needs to be developed from those who commit to the overall vision of the Preliminary Specification and desire to provide oil & gas producers with the most profitable means of oil & gas operations. 

There will be two types of leadership provided by our user community. There is organizational focused leadership that focuses on the needs of our user community. Secondly there will be overall industry wide leadership of the oil & gas business model. This is discussed in detail in the next section. Our user community includes the necessary organizational support that will be demanded of it, including the approximate thirty Product Owners who are responsible for either a specific module of the Preliminary Specification or an element of its development. Involving the hard work of developing an organization that meets the needs of the software, the industry, the service providers and most importantly the people in the industry. To build an application on Oracle Cloud ERP can be done by anyone with the money to do so. To add a vision as compelling as the Preliminary Specification to the mix adds a lot of value to the process. However, building a user community to define and support both Oracle Cloud ERP and People, Ideas & Objects software with the vision of the Preliminary Specification will ensure that this environment becomes successful for all concerned. These software applications will deliver the explicit knowledge that is captured by our user community and codified in the software they develop, and their service provider organizations will deliver that software in combination with their tacit knowledge as a service offering to the profitable oil & gas producer. Providing oil & gas producers with the most profitable means of oil & gas operations. 

This leadership group contained within our user community should not be confused with the role of our user community itself. It is a supporting role, not a defining or traditional organizational structure to provide guidance to the organization. It is purely to provide our user community members with the support they need in order to perform their role in providing the oil & gas producer with the most profitable means of oil & gas operations. To suggest our user community is independent, then to continually state that they are People, Ideas & Objects competitive advantage with its own leadership structure is counter-intuitive and contradictory. I don’t see it that way. The Intellectual Property of which is the basis of what everyone is working and building is derivative of People, Ideas & Objects and our ultimate ERP software. We are seeking to build the highest quality software possible for today and to continue to do so. User based developments are the only method in which we can achieve that objective. It is more of a value to us that fits within the method that we’ve chosen to provide our solution. The leadership team of our user community is supportive. Looking to mitigate the issues and exploit the opportunities they see our user community being faced with. User community participants are focused on the demands of the producers' needs. That is where they’ll focus, seek and obtain their calling. 

McKinsey Consulting published a good article on the topic of leadership entitled “Change Leader, Change Thyself.” And within it they have an exhibit that I can’t reproduce. You can download the article and view the Exhibit for yourself. It's the one that details the roles and responsibilities of the CEO, CFO and COO. Their focus of attention, their source of power and their sweet spot. It is these roles that need to be filled in our user community leadership as an organization. 

Other roles that will need to be filled are the approximately 30 product owners we mentioned earlier. These are intriguing roles that take a premier seat in the software development team. They are the ultimate representative of our user community for the scope of the team's development authority. Therefore, for the team developing the Partnership Accounting module, the Partnership Accounting Product Owner would ensure that our user communities' needs were understood and implemented in the software by the People, Ideas & Objects software development team. Having expert knowledge in the area, in this case Partnership Accounting, the Product Owner is able to read our user communities needs and preferences and increase the effective communication between our user community and the development team. Ensuring that no misunderstandings or confusion between the groups causes delays or faulty software. These are just some of the obvious leadership roles that are necessary in our user community. As we proceed we will begin to put more elements of what is required and how we expect things to develop. 

We have consistently asserted that we provide greater value to the dynamic, innovative, accountable and profitable oil & gas producer over what the bureaucracy is providing today. Our focus on developing our user community, its leadership and the associated service providers as our primary task. We do this as we are striving to provide an alternative means of organization to the oil & gas industry in order that the oil & gas investor, and the people who work in oil & gas can choose the bureaucracy or People, Ideas & Objects Preliminary Specification, our user community and service providers as the method to manage their industry. Organizations don’t change, people do. Therefore without alternatives we are stuck with the bureaucracy. If we don’t work towards building an alternative, nothing will change. And this is the place where people can begin the process of changing the oil & gas industry from a tired, poorly performing, muddling along behemoth to a dynamic, innovative, accountable and profitable industry. 

There are many benefits that are and can not be quantified which are gained from implementation of the tools of specialization and the division of labor. Ours is a new way of operating the oil & gas industry, and as we’ve stated here before, even if the bureaucracy could park their self interests and wanted to proceed with our developments we would not begin until our user community is fully formed. The Preliminary Specification is a fine vision of what the industry can operate as. However without our user communities involvement in the software developments it will be a great vision without the appropriate implementation. There must be robust user community involvement in the software development of the Preliminary Specification. It is mandatory, and as I have pointed out our user communities development is our number one focus and priority. We are an existential threat to the bureaucracy who are challenged by the Preliminary Specification. They are eliminated from the landscape by it and therefore don’t want to be part of it. Therefore they have not and will not support us. And we'll therefore have to build our user community brick by brick and stick by stick. And that takes time, of which we have and the producers don’t appear to.

The ultimate configuration of the leadership positions of our user community will be determined by those within the community. Industry after industry is being disintermediated by Information Technology. And that is what is being done to oil & gas through the Preliminary Specification, our user community and their service provider organizations. And it is timely from a business point of view. The prolific nature of shale reserves is demanding a new business model be generated for oil & gas. A business model that deals with the resource abundance and price destroying nature of producers over-producing unprofitable production. A business model that deals with allocating production fairly across the industry, based on profits and doesn’t damage a producer with excessive G&A costs when production is shut-in. A business model that defines and supports a basis of innovation in the producer and industry to ensure that consumers are provided with abundant energy at reasonable costs. There are significant opportunities that lay ahead for the people who participate on the leadership team and our user community in general. They will have a hand in developing the organization that defines the manner in which the oil & gas’ business model is defined and supported. 

The opportunity to take today’s prototypical producer firm and convert it to the one that operates under the Preliminary Specification and our user community doesn’t exist within today’s cultural configuration. The scope of change necessary is beyond what's humanly possible for us to do. The forces of cultural inertia from the bureaucracy would need to be fought at every step and our energy would be wasted in such battles. We’ve chosen not to concern ourselves with such battles and instead rely on the forces of creative destruction to make the choice between the performance that the bureaucracy provides, and the solution that we present here with the Preliminary Specification and our user community. 

The transition from the bureaucracy to the Preliminary Specification may be due to successful producers buying out laggard firms that refuse to change, or their assets. That is the normal course of change as a result of creative destruction. We don’t know and we certainly don’t care how the industry configuration ultimately changes. What we are concerned with is that we provide the most profitable means of oil & gas operations. And with the Preliminary Specification we already have a material difference in our value proposition. This will be the focus of the development of our user community and particularly its leadership. One area of our value proposition that we’re unable to quantify is the value that we will be able to provide the dynamic, innovative, accountable and profitable producer due to the toolset which we implement within the Preliminary Specification. And that toolset currently consists of items such as automation of the business process, specialization and the division of labor. 

Looking at the overall scope of what can be accomplished by the leadership team and our user community. It is important to remember they have the wherewithal to make this happen. This is documented in the three structural components of the community which include the money and power needed to complete their tasks. It is one thing to define broad strokes of a vision of what is possible and another to provide that community with the means to undertake that vision. And I think those mechanisms are within the domain of our user community. 

The Preliminary Specification provides a solid vision and workable framework of what an alternative means of organization could be for the oil & gas industry. It works in that there is no deficiency or major failing where there is a breakdown in logic or implementation. It is a result of my vision of what could be, and a decade of research. It is also incapable of providing the industry with the ability to be operated upon, as it stands today. It needs the input of thousands of others who work and know what, how and why the industry operates. It is now time for these people, our users, to have their input into the process and build on the framework and vision that is the Preliminary Specification.

User Community Business Leadership of the North American Oil & Gas Industry

The questions that need to be asked is how does the North American oil & gas industry avoid the disaster it has become from recurring? Why did the business leadership fail? Why hasn’t it been corrected? Did producer firms adopt the cultural, Information Technology and organizational changes demanded of it? If not why not, and what motivation stopped these changes from happening? Has the dynamic of business leadership in oil & gas itself changed? Has it taken on a broader, industry focus and away from the individual organization? Or is it that producers today have just lost the script in terms of business performance? What is the meaning of business leadership and why has the loss of it been so devastating for all concerned? Why hasn’t the science and technological leadership of the industry expressed their dissatisfaction with all the others? Or are they satisfied with just doing enough to get by?

A quotation from one of my favorite authors Victor Davis Hanson in his recent book The Second World Wars.

Thucydides’s ancient warning that “it is a habit of mankind to entrust to careless hope what they long for, and to use sovereign reason to thrust aside what they do not desire.”

Nonetheless I don’t think I’ve been able to get to the beginning of the discussion that needs to be undertaken on the difficult topic of leadership. What I do know is that the miracle of Information Technology has made oil & gas organizations sink into a comfortable, fixed configuration that works for one small group of people at the expense of everyone else. These producers' decision makers are conflicted and self-absorbed to the point of caricatures of responsible, accountable and authoritative business leaders. Unable to make the necessary changes due to the conspiracy of the Greta Thunbergs, their investors, Joe Biden's and the monsters under the bed… They’ll “muddle through” as they always have, which has proven to be lucrative, for themselves, and somehow acceptable in the past. There is no demand for change as there are no issues.

Will our user community as configured be the means in which to provide the business leadership in terms of the governing business model for North American oil & gas? We’re suggesting here that the difficulties in organizations making changes to deal with their environment are catastrophically constrained by ERP software. When ERP software defines the process management the only method to make changes is to change the software first. This knowledge has been used in the current producer firms to ensure that nothing can challenge their methods of management and ensure their positions remain secure. Therefore a method is necessary to change the software that is used in the industry to deal with the business issues and opportunities as they arise. What People, Ideas & Objects are recommending in the Preliminary Specification is a permanent software development capability be established for our ERP system in addition to our permanent user community and their service provider organizations. Our business model is based on change and has discarded the traditional means and methods of ERP software firms to generate their revenues. Post commercial release of our Preliminary Specification will see People, Ideas & Objects generate the revenues necessary to support our developers and our user community through the changes that we make to these systems. These will be funded through an assessment made to the producers based on the prior quarters costs etc.

This change in funding brings about a number of fundamental differences between our offering and what is traditionally undertaken. The first is that our user community remains wholly independent. They will not, and never will be “blind, sleep-walking agents of whomever will feed them.” They will be driven by what is necessary in order to ensure that the industry and all of its secondary and tertiary industries are provided with the most profitable means of oil & gas operations everywhere and always. The capital markets will then be able to assess the producer's performance on the basis of its understanding and implementation of their science and technology of engineering and geology. Those producers who are unable to perform financially will be unable to succeed, unlike today’s bureaucracy. Secondly, People, Ideas & Objects itself will not be constrained by what we believe to be the two major ERP software providers funding constraints of code and customers. As the customer base becomes larger over time scale becomes more of an issue, software code therefore also becomes exponentially more complex and difficult to manage. Neither of these costs are fully covered in the Service Level Agreement from the point of view of support costs. And they leave nothing in terms of financial resources for changes, and certainly nothing for innovation or improvements. If our user community determines that some software process is redundant through a higher level of specialization then they’ll have little to no vested interest in supporting it and therefore will make the change. The producers will generally be unaware and rightly unconcerned for any of these transactions. People, Ideas & Objects cost model distributes these costs across the producer population based on the North American production profile that participates in the development. Otherwise, as they do today, each of the producer firms will face these same costs of changes themselves, individually within each of their own empires. Each producer's independently replicated, unshared and unshareable overhead costs is the secondary reason for their lack of profitability. Our solution to that is we are enhancing the cloud computing paradigm by establishing our Cloud Administration & Accounting for Oil & Gas. Taking a highly complex and difficult process, that is capital intensive to build and maintain, that is costly to operate, is not in any way a producers competitive advantage and turning it into a shared and shareable variable cost. Variable based on profitable production.

We have been fortunate at People, Ideas & Objects to be able to quantify the differences between our method of organization and the current bureaucracies. Documenting the $25.7 to $45.7 trillion in our value proposition over the next 25 years goes a long way to making our case for change. These differences are made up by having the $20 - $40 trillion in capital expenditures funded internally through an appropriate business model instead of the expectations that investors will be available to continue to “build balance sheets,” and “put cash in the ground” which is the current officers and directors method. The $5.7 trillion is the differential between our determination of “real” profitability and the definition of profits used in the base case. The ongoing, never ending cash crisis, which will be resolved in our model, is included in those figures. Another area that is just as material in terms of the scope of change that we’re unable to quantify or qualify. Are the differences that are attributable to the toolset that we employ within the Preliminary Specification, our user community and their service provider organizations of automation, specialization and the division of labor. These will be material in their value to the dynamic, innovative, accountable and profitable oil & gas producer. Possibly of greater value than those benefits that we are able to quantify today. Lastly, what is the monetary value of establishing Cloud Administration & Accounting for Oil & Gas? It's interesting that producer officers and directors expect investors to invest in them when they themselves can't invest in their own organizations in order to enhance their own profitability. This being the case after the disaster that stands from the past few decades of the producers financial record. And their leadership has suggested what to remedy this?

Recently we learned during Oracle’s 2022 CloudWorld conference of many of the same developments and features being provided. Finding “gaps” between offerings and filling them with automated processes is the direct application of enhanced specialization and division of labor that our user community is using and will be applying in this community. Oracle Cloud ERP has accelerated these same principles across the generic business function and process landscape bringing about even higher levels of value to the North American producers. Those producers who opt in to the Preliminary Specifications development will therefore have our user community developing this value adding process to the specific North American oil & gas attributes and therefore covering off the majority of a producers accounting and administrative needs. 

To suggest that administration and accounting of the oil & gas industry are static is disrespectful to the word static. These are the foundation of the business which is where the business leadership is derived and exercised and is therefore static too. People, Ideas & Objects do not understand engineering or geology and don’t pretend to. The leadership in these areas is constrained by the lack of effective business leadership in these producer firms and the industry. Relegated to the task of complaining that investors won’t let them do this or that. If effective business leadership was enabled and permitted to flourish, where would the industries science and technology be today? What would North America’s production profile be? Would they be looking behind them as they seem to always be doing now? Why is this acceptable to them when it’s destructive to what they’ve built and provides them with inadequate resources to do what is necessary and more? Would the development of profitable oil & gas operations everywhere and always provide them with the resources, capacities and capabilities to apply their sciences and technologies in a more competitive manner? Instead of dealing with this situation they’ll vilify and ostracize those that are seeking to provide them with the very solution! We are not the enemy here.

Lets add a bit more of the dynamic nature to our user community and their service providers overall structure that differentiates them from the static business environment that somehow became so acceptable. We believe, and it is our opinion, that the lack of investment in ERP systems over the past decades has left oil & gas companies with very poor systems today. And this has nothing to do with those ERP providers who have worked miracles in impossible financial conditions as producer officers and directors felt the need to ensure nothing threatened their status quo franchise. With IT developments over the past decades unrealized we can imagine how it stands today, however the best description that I can describe is that people are busy working for computers. We believe the shoe should be on the other foot and the computers should be deployed to manage the storage and processing. Leaving the distinct competitive advantages of our user community and their service providers to do what humans do best.

Leadership, Issue Identification & Resolution, Creativity, Collaboration,

Research, Ideas, Design, Planning,

Thinking, Conflict & Contradictions, Observation, Reasoning,

Judgment, Application of Implicit & Tacit Knowledge, Quality,

Automation, Specialization & Division of Labor, Innovation, Integration,

And I’m certain there would be many more. It will be up to our user community to ensure that we employ this advanced toolset in the development of the Preliminary Specification and through to their service providers. This will be a challenging aspect of their work in terms of how it’s undertaken. With the reorganization of the industry and reduction in size of the prototypical producer. The service provider becomes a specialized provider who uses their division of labor to approach the entire oil & gas industry as their client base. This of course is an entire new way of organization and perspective of how things are done. The scope of change is tremendous. The size of the G&A resources that are being shifted in this reorganization are therefore estimated to be in the region of $10+ billion per annum in terms of their share of producer overhead costs. 

It is these topics and areas of focus that will be the domain of the business leadership within our user community. Very high level, once in a century type of work that will be something an individual can highlight their career and establish a business in. The changes we are making are dramatic and will have a material effect on the performance, makeup and manner of how North American oil & gas operates for the next 20 to 30 years. Foundational work that is material to how the producer performs financially, and since all our organizations are a critical part of our society, healthy organizations lead to healthy societies which lead to healthy individuals.