Costs and Strategies Can Be Different.
When we look at the costs and strategies of the participants in a Joint Operating Committee we see these two things that are rarely the same. Each of the producers are pursuing their own strategic and tactical interests in the region and they may not necessarily be consistent with any of the other participants in the Joint Operating Committee. This will lead to different costs of capital and operating, and this fact is recognized and is consistent with the capabilities of the People, Ideas & Objects Preliminary Specification.
One or two of the producers in the Joint Operating Committee may have it as a key region and therefore have invested in infrastructure to support the production in the area. Other producers may be new to the property having recently purchased the property with no other interests in the region. Or, may have been with the property since the beginning but limited their investment to the producing assets. There are a variety of operational possibilities in terms of what could make up a producers interest in the region. These will have an effect on the costs of the property in terms of whether they pay for gas processing, or, are able to use their capacity in a gas plant. Naturally this reflects on the amount and types of capital investments they have made in the region. This also applies to their motivation of expanding their reserves or increasing their throughput. Therefore it is difficult to determine the costs and strategic makeup and motivation of the partners that are resident in the Joint Operating Committee that you are a participant in.
This lack of strategic transparency is something that exists in oil and gas. However, everyone’s motivation should be consistent. And that is to expand the return on investment in the properties that they hold in the region. That way consensus can still be attained with the various different strategies in play. The open collaborative ways of the Preliminary Specification. Particularly within the Knowledge & Learning module provide the opportunity for innovative producers to collaborate on the possibilities that are open to them. This can be done without exposing the strategic direction the producer firm is taking to the other members of the Joint Operating Committee. Assumptions can be made, and they may be correct, however, they may also be wrong. The companies strategic direction can not be interpreted through a more open and collaborative footing within the Joint Operating Committee.
One thing that is unique about the Preliminary Specification is the Strategy Interface within the Petroleum Lease Marketplace module. It contains the strategy that is held for the participants interest in the Joint Operating Committee. This may not seem to be too innovative of a feature within an ERP system, however, until you realize that each Joint Operating Committee within the producer firm has its own unique strategy. That’s correct the existence of one size fits all corporate strategies ceased to be effective some time in the past century. The innovative oil and gas producer must maintain multiple strategies for their properties at all times. Each property must be able to employ their own unique strategy in order to optimize the assets or reserves of that property. Generic corporate strategies are inappropriate for the 21st century and you must have an ERP system that can accommodate these needs. People, Ideas & Objects Preliminary Specification provides the ability to maintain unique strategies for each and every Joint Operating Committee through the Strategy Interface in the Petroleum Lease Marketplace module.
The Preliminary Specification provides the oil and gas investor with the business model for profitable exploration and production. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy.