Why We Need All of our Budget

People, Ideas & Objects has a big job to do which provides significant value to everyone involved in the oil and gas industry. It is as a result of our value proposition that our expectations might seem a bit odd. And as a result they can be taken out of context quite easily. One of these expectations is in regards to our budget and the expectation that it will be fully funded before any work is undertaken. The reason for this is detailed in this post and is as with all things with People, Ideas & Objects, related to our users.

Clearly we have a powerful bureaucracy who are well aware of this project and have chosen not to support it. This can be assumed to continue and that steps will be taken against People, Ideas & Objects and those that willfully participate in either the user community or the future service providers. Protection for these people during the critical period in which they are exposed to the antics of the bureaucracy must be provided. That protection is the assurance that during the transition period that we are building the systems. The revenues they will need to make this software and establish their organizations for the future oil and gas industry. Will be there in the form of the user community fees paid by People, Ideas & Objects during development.

There is significant career risk to those individuals who chose to decide to join the user community and service providers. The bureaucrats will list these people on their “do not hire” list that is shared amongst the bureaucrats at their lair. This will be a permanent change in the users life, there will be no going back to the old ways. However, people who are making the commitment to the industry in the long run. Who are tired of the losing ways of the industry. And chose to join People, Ideas & Objects. Those that are committed to providing the most profitable means of oil and gas operations. Why are they required to take any financial risk in the transition of the industry in order to provide the industry with the $5.7 trillion value proposition?

They aren't being asked to do that and they won't be asked to do that. They will have the financial resources necessary to leave their place of employment in the industry and participate in the user community, and seek to establish a service provider firm for the future of the industry. This will be done on the basis of the work that they do for the user community, the People, Ideas & Objects developers, and will be well compensated for out of the budget of $667 million for user community participation.

If we think that the industry will fund the development of the People, Ideas & Objects Preliminary Specification, user community and service providers on an annual go forward basis. This would be a foolish approach to take with the likes of the bureaucracy lurking in the shadows waiting to poach responsibility for that annual payment. They would most certainly come up with some reason to terminate the funding, or cut the funding, or tie the funding up in some way. I could go on but I’m sure that it is understood that they would try to do something. It is therefore incumbent upon us to ensure that our users and service providers are protected, and the overall viability of this project meets its successful conclusion. Having all of the funds at the beginning of this process is what is required to deal with the personal risks of the user community participants and the inability of putting this project back to together again if there were a temporary disruption. We must begin, continue without disruption and successfully build without the disruptive influence of the bureaucracy. They have shown themselves to be untrustworthy and unreliable. And that is how this unreasonable and odd expectation of having our budget fully funded has been developed.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative, profitable and successful means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

Oil and Gas Operations in the 21st Century

Last week we highlighted the ways in which People, Ideas & Objects would enable a successful oil and gas industry. One that was dynamic, innovative, profitable and successful. This is detailed in the Preliminary Specification and is what is required for the industry to move forward in the 21st century. Currently the bureaucracy provide no future other than the financial demise of the industry. Theirs is a form of operation that is consistent with how things were done in 1960 or 1935. The need for change is evident based on the earnings of the producers and the changes they have implemented to deal with their financial losses. And that is, they have done absolutely nothing. Sure they have cut their capital budgets, but as we are all learning that does little if nothing to deal with the issues at hand. It is 2015 and we offer a means in which to operate the industry up to 2040. That only seems to me to be a reasonable approach to the way we should be operating the industry.

Change of this scope, led by Information Technology, is occurring in every industry. In every industry the entrenched status quo is fighting to maintain their archaic ways of business. This is the situation in oil and gas. It won’t be the oil and gas producer, led by the bureaucracy, that stands up and says we need to adopt People, Ideas & Objects Preliminary Specification. They have fought long and hard to ensure that we don't see the light of day. What is needed is for those that will be the ultimate beneficiaries of the changes that are made when the system is implemented. And that is the oil and gas investor who are being abused by the bureaucracy as badly as we are. It might be wise to have the investor direct the producers to fund People, Ideas & Objects from their savings in the reductions of their capital budgets.

If we continue on in the manner that we have in the oil and gas business things are only going to get worse. And does it surprise anyone that there is no response from the bureaucrats? This summer its reasonable to assume that storage facilities for natural gas will reach capacity. What this will do to prices for the years to come is certain to be bad news. Recently I read that Canadian producers who were unhappy with the prices for their oil production were shifting to drilling natural gas targets. Bureaucracies are incapable of doing anything but meeting the prime directive. And that is, increase productive capacity and produce. After more than five years in the natural gas business their behavior should have changed. Clearly it hasn't, and it never will. Nor will it change on the oil production side of the business. Surely investors can see that the trend is there. In many ways the oil and gas industry is not a business. Its an engineering exercise.

Who can instill the business discipline that is necessary in the oil and gas business? Only those that are affected by it. There can be a strike by the investors and they can refuse to invest in the industry. This has essentially been happening since 2008, and still these problems exist. The bureaucrats found willing junk bond markets to fuel their needs. And now that that avenue is closed. The reduction in capital expenditures will enable them to continue on without less difficulty. However, you will see continued overproduction, and increases in production in both oil and gas in North America for at least ten more years. The only thing that will stop them is the end of the shale based reserves. Which in natural gas is 50 years. In oil its as little as 10. And that is the Saudi’s game plan. Let the shale based producers, their investors and junk bond holders suffer with losses and financial destruction for the 10 years that shale based oil exists in North America. And then they will have both market share and pricing power again.

Or maybe someone will come up with an idea that makes this nightmare go away. Provide the producers with commodity price making strategies like People, Ideas & Objects does. And we can skip the financial destruction that in my opinion is only really beginning.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative, profitable and successful means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

Will Be Off This Week

Returning Monday March 16, 2015.

How We'll Be Successful Part IV

People, Ideas & Objects capital structure also provides for its success. There is a long history of venture capital groups involvement in oil and gas ERP systems. And its not a beneficial one from the point of view of the venture capitalists. The number of oil and gas companies makes for a very small market. What the venture capitalists have learned is to avoid small markets as there is no way in which to leverage an investment without large volumes of sales. And that is the example that has been proven time and again in the oil and gas ERP software marketplace. The market is too small and the producers are able to “negotiate” with the ERP vendor to the point where the ERP vendor is selling their products well below cost. They are subsequently told to make it up on the next sale. Only to find the same movie playing.

We have skipped the venture capital chapters of the People, Ideas & Objects history book. I control 100% of the firm. We are structured much like a utility where the revenue stream that we earn from the producers has an element of profit included in the price. This way there is no confusion or conflict as to who’s money is who’s. The user community and software developers will be provided with the resources that they need for the budgeted year. Our costs to the producers will then be adjusted for the profits of the firm and the Intellectual Property royalties that are due.

It is in this way that I will be able to monetize the investment that I have made in People, Ideas & Objects and ensure that the priority of the user community remains the focus. If, in the traditional manner of monetizing an investment, I would have to sell the shares in order to achieve that. With the shares in other hands the decisions as to how People, Ideas & Objects capital structure and revenue flow could change. And the conflict between the shareholders and the user community, as a priority, may come into play. The oil and gas industry needs the user community to be the priority and that will be the case with the capital structure as is defined here.

These are academic ramblings that imply there is value in People, Ideas & Objects down the road. To define these points are important to determine what our priorities are when we are operational. And how we will in turn ensure that the user community, the service providers and the oil and gas producers are able to successfully build off of this initiative. We have spent the past year emphasizing the importance of, and focusing on the user community. This is the only manner in which the oil and gas producers are going to be able to deal with the issues and opportunities that are presented to them in the next 25 years. How we structure ourselves is an important element of how that is achieved and the success of all concerned.

It is also academic to state that I had the option of accepting venture capital funds. Nothing could be further from the truth. In my years of working on this project many have been approached, oddly enough just as many have said no. The scope and scale of what I was doing was beyond what they thought could be approached in a commercial environment. A diplomatic way of saying you're crazy. A classification, as you know, that I have come to appreciate. If I did take any of the money from the venture capital groups it would not have brought us any further towards our goal of building the Preliminary Specification. The need for the oil and gas investors to step up and direct their oil and gas producers to fund this project are clear. No one is going to do the job for them other than themselves. The bureaucrats are too conflicted. There is no money in it for anyone to invest in. And they have the benefit of the value proposition flowing from the producers bottom line onto their pocket book. Its really that simple. Besides what are you going to invest in today, another gas well?

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative, profitable and successful means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

How We'll Be Successful Part III

One of the reasons that we will be successful is that we will enable the oil and gas industry to balance the short and long term perspectives of their business needs. This assumes that we are provided with a stable and consistent revenue stream in order to support the work that needs to be done. A criticism of the industry today, and it would apply to all industries, is that it is too focused on the short term and needs to balance this against its longer term needs. Selling today’s production for whatever it is worth would certainly fall into this category. With People, Ideas & Objects providing the dynamic, innovative, successful and profitable oil and gas producer with the most profitable means of oil and gas operations. We have provided the optimal short term perspective in which to operate. The need therefore is to continue to address the issues and opportunities of the business in order to ensure that when things change, the producers business model and mode of operation will change as well. With software taking such a key role in defining and supporting our organizations. This is a permanent software development capability that the oil and gas industry must support and financially commit too.

With our budgeted resource implementations of thousands of man years that are needed for the development of this software, and thousands of man years within the user community. This capability will have one source of funding in order to ensure it continues to provide this capability to the oil and gas industry. Through the licensing, that source of funding is from People, Ideas & Objects and that means our revenue stream has to be supplied consistently from the oil and gas producers. This software development infrastructure provides the means of which the industry will operate profitably. Currently the bureaucrats are determining its future by not funding it. We can not be subject to this type of thinking now, or in the future. Our value proposition is only valid if we are operating successfully in the marketplace. Any disruptions to our revenue stream will affect the realization of that value proposition by the oil and gas producers. But will also create permanent damage to the capabilities of the software development team, user community and elsewhere. A shortage of funds requires the stoppage of work. I am not of the opinion that this type of software development capability can have an on/off switch for the industry to use.

The type of destruction that would be caused would be the laying off of people who are working on long term projects that require a constant, determined and consistent application of their time. Those that are focused on the long term that are required to “wander through the woods” in order to determine the next decentralized production model or other innovation. Innovations that are necessary so that the oil and gas producers maintain their most profitable means of oil and gas operations. Alternatively we could implement extreme measures, as if there was a funding cut, prioritizing which expenses were cut first. And it would be in that instance that we could address higher priority areas such as the costs of the cloud computing infrastructure. The point is not to threaten, it is to emphasize the need for an approach to the development of this capability that is inconsistent with the current bureaucrats method of doing business.

This is not only counter to the methodology of the bureaucrats today. It is raising the point of how important software is in society. Since the meltdown of the Tech industry in 2000. People have generally disregarded Information Technologies importance overall. And that reflects the manner in which change is reflected in society. Change is always overestimated in the short term, and underestimated in the long term. We are now clearly in the long term orientation of the changes brought about by Information Technology. The need for industry to develop the requisite software development capabilities is a key part of People, Ideas & Objects value proposition. This capability needs to be funded and provided for in a secure manner so that the development of this capability meets its full potential. And what that full potential is probably can’t be measured in a traditional software development firm. It needs a new commitment from the sponsoring industry in order to ensure that it meets that potential successfully

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative, profitable and successful means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here.

How We'll Be Successful Part II

That blind spot of the bureaucrats should be coming into focus for those that are concerned about the health of the oil and gas industry. The blind spot being that the industry is failing and that a serious problem exists in terms of its profitability. Discussion in the industry is about the future, which is good, however it looks to the possibilities of what could be. How there will be a trillion dollars spent in infrastructure alone to expand the marketplace for oil and gas. That the U.S. can lead the world in terms of production of both oil and gas. No one stops to ask on whose dime though. Money grows on trees as there are no earnings in the producers to support these investments. So how will these investments be made? And what will be done about those losses that are systematic, critical and terminal? Its that bureaucratic blind spot regarding the state of profitability that is so disconcerting.

This disjointed behavior of the bureaucrats is the traditional “muddling along” operating procedure of the industry. There is no capacity to deal with the issues of the industry. And no desire to change that characteristic. That would require effort and work. The key to the oil and gas industry is to build production capacity and to produce. Let everything else take care of itself. In the past this was all that was possible in terms of operational capabilities in the industry. Things haven't changed as far as the bureaucrats are concerned. In the past there was no Information Technology capability that could do the things that we are proposing with the Preliminary Specification. However things are different today and the seriousness of the problem in the industry requires the industry to make the necessary changes before it collapses.

Recently we pointed out that we would be successful as a result of the user communities vision that we have put in place. That the users were enabled and empowered to make the changes to the software that will operate the industry. This is a necessary first step in order for the industry to lose the “muddle along” strategy and turn it into the dynamic, innovative and profitable industry that it can, should and needs to be. Otherwise we are beholden to the delusions of the bureaucrats who will continue to dream of how they will increase their production for the next decade.

Right now what we need is to organize ourselves to approach the next 25 years. In ways the bureaucrats are right, the future could be quite robust given the endowment of the oil and gas shale reserves. However, there are a lot of equity and debt holders that are looking at the industry with fear that the bureaucrats are so out of touch with the state of the business. If you think natural gas prices are bad today, wait until summer when they'll be far lower as a result of full storage capacity. Not even that will stop the production increases however. As we have indicated, the industry functions on an operating system that has no programmers and no system administrators. There is no one who can make any changes to the way things are being done.

Until the industry solves its profitability problems nothing will happen of significance in this industry. Why? Look at the reserve estimates of the oil and gas shale reserves. This overproduction will never stop until there is a means in which producers have the capability to shut-in unprofitable production. Such as the Preliminary Specification provides. Only then will the industry return to profitability and only then will the industry be able to source the capital and debt that is needed to build out the industry. And its a catch 22 type of problem. There won't be any capital for the producers to invest, yet the overproduction will continue nonetheless.

The point is that the industry has changed. The ways and means that it has to operate has to change as a result. We live in sophisticated times where Information Technology influences our organizations substantially. In order to make any change requires that we build the software to emulate the changes that we desire. Specifically for the reason that it is the software that runs our industries and companies today. However the bureaucrats are unable and unwilling to give up their franchise that is supported by this older software. Getting rid of the old software gets rid of the bureaucrats. That should really be considered a good thing if you think about it. Especially from a profitability and success point of view. And one in which we will be able to move forward with a dynamic, innovative and profitable oil and gas industry.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative, profitable and successful means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

How We'll Be Successful

Standard operating procedure in the oil and gas business regarding technology providers is to issue a comprehensive Service Level Agreement (SLA) to define the parameters of the task at hand. This enables the bureaucracy to ensure that their needs are met in the project and that the deliverable from the technology provider meets their standard. In a comprehensive technology environment this is a reasonable approach to ensure that the purchaser of the technology is getting what they want. And in almost all instances the oil and gas bureaucrats, with their SLA’s, have been able to ensure that they get what they want from the technology providers. However as we indicated the other day. The industry is run by an operating system that has no programmers or system administrators to make any changes. And the industry is failing. So although the SLA’s have met their technical terms, the industry as a whole is a failure as we see with the inability to deal with oil or natural gas pricing, or any other issue that might arise. And here I am raising the bureaucrats “muddling along” strategy as its only mode of operation.

At People, Ideas & Objects we don't accept SLA’s. We don't believe in them and therefore don't accept them. If industry, a producer or an investor wants something contained within the systems that we develop. We provide the user community as the means in which they can have those requirements implemented, have those changes made, and operate in the software. This isn't something that can be defined down to a contract and implemented at one point in time. It is a constantly evolving capability. One where the input of the users, whoever they may be, have representation and input into the systems that they use. And as we indicated the other day. This is how the people will have the computers work for them. Not the manner in which computers currently have people working for them.

In terms of our success as an initiative in the oil and gas industry it won't be as simple as this change. The classic bureaucratic posture of issuing an SLA and therefore having the appropriate scalps to blame for any problems down the road is all part of the standard operating procedure. This blame someone else for not fulfilling the spirit of the SLA is an extension of the gotcha politics of the bureaucracy. To make the changes from a losing oil and gas industry where “its the other producers fault” for the problems. To one where everyone begins to see success in the industry as their responsibility. Will require everyone to approach the industry with a new mindset. Today’s mindset of accepting the failed state of the industry is wholly inadequate for the future.

This therefore is technically what needs to be done. The politics of making that change is also necessary in order to ensure that it happens. Key to facilitating this political change will therefore be the user community needing to be the focal point of the industry. This is fine to establish a committee and say they are responsible and make them authorized. The manner in which user representation has been handled in the past. But what they really need is the power to make these changes and ensure that the industry does become successful. And here is where the Intellectual Property comes into play. Through licensing the users within the user community, they are the ones with control over the Intellectual Property that makes up the Preliminary Specification and its derivative works. Our software developers will only look to the user community for its software development requirements. If the user communities vision of the industry requires that changes be made to enable x, then they will design x and implement x into the software through their own means, funded by People, Ideas & Objects. They are the ones who are powerful enough to make the changes and have them implemented. Therefore we won’t find ourselves in consecutive decades of producing chronic losses such as we are in the beginning stages of now.

That leaves the question “who are the users in the user community?” That’s a good question. And with the position that the bureaucrats are taking it will apparently not include any of the producers. Which of course if they did join the user community, that might be the key to their future success.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

Computers Working For Us

There are many things about People, Ideas & Objects Preliminary Specification that the bureaucrats dislike. One of them is the way that we plan to implement the system when the time comes. Traditionally an ERP system is implemented in a controlled environment where the system has priorities over the needs of the users. When there is conflict between these two elements the systems requirements override the users needs. Very simple in theory and in practice. This enables the ERP system to be controlled and implemented in a manner that is consistent with the technological point of view that the system was developed under. This has become a science as opposed to an art and people have become familiar with the practice and know what to expect and how to behave in the process.

These failures in terms of implementation function throughout the industry and have provided the metaphorical cement that keeps producers from making any changes to the way that they operate. The structure and responsiveness of these producers are somewhat the same as a robot that has been programmed to conduct two tasks. Produce at capacity and increase capacity. Ask it to shut-in unprofitable production and it will just start smoking. There is no ability or capability within the organizations to do anything other than the prime directive. This was fine when oil and gas was scarce. Now with everyone booking 2 tcf annually of additional gas reserves the need for change is evident to everyone, and no one can make any change. The industry has an operating system where there are no programmers or system administrators to make the necessary changes to the program that operates the industry.

User based systems are the solution to this rigidity and inability to deal with the situation on the ground. By having the user define and build the software that identifies and supports the organization the people are instructing the computers what to do. Not the other way around. If a change is necessary in the business model of the profitable oil and gas producer then the users can implement that change and have the industry operating under that business model in short order. The People, Ideas & Objects software development capability, our user community and the service providers will be able to make these changes and improvements on a constant basis.

This is the capability that will exist within the industry from now until the end of time. That is as far as I'm concerned. People, Ideas & Objects are organized in our Revenue Model to generate revenues based on the changes to the system from the user community. We are oriented to change unlike the current systems that are oriented to a point in time installation. We have the user community as a permanent established resource available to make the changes to the software. Our users are the only people that our software developers will listen too. Our users are also the critical founding resources of the service providers who are the manner in which the producers have their administration and accounting provided to them. They are the ones who will know what is and isn’t working. What needs to change and how that change needs to be implemented. And as members of the user community they will be able to make those changes at any time in the future through the permanent software development capability provided by People, Ideas & Objects. That way oil and gas producers won’t find themselves working against their best interests for decades at a time.

Someone has programmed the industry in the fashion that it has. Its losing money and is failing spectacularly. And we the people are unable to do anything about this. I suggest a change where we organize ourselves in a manner where the computers work for us. After all it makes a lot more sense in the long run, doesn't it?

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

What's In It For the Investor

We've seen the Information Technology industry have another good run lately. Particularly Apple with its ability to disintermediate industries and build value on the changes that they create. Recent talk of production of a car in 2020 is only the most recent news from the firm. I’m sure they won't be making the car, however the Chinese might be doing that for them. What they will do is figure out the software that better organizes the industry and brings value for their shareholders. Disintermediation, the same thing that we are doing here at People, Ideas & Objects to the oil and gas industry.

People, Ideas & Objects and myself will do well financially as a result of this disintermediation. The users and the service providers, who are essentially one in the same will also be doing fine as a result of these changes. Having control of their own destiny in terms of their service provider businesses. However the real winners are the investors who are willing to step up now and actively direct their producer firms to fund the development of the Preliminary Specification. Everybody but the bureaucracy wins.

In many ways this is the first opportunity for the investor class to participate in the Information Technology revolution. It is they who will be the ones who are the recipients of the earnings that the producers will be able to earn once the Preliminary Specifications decentralized production model is the business model that is used by the industry. Our value propositions present value is $5.7 trillion over the next 25 years. Those incremental revenues and subsequent earnings would flow to the investors if they had the foresight today to trigger the funding for People, Ideas & Objects Preliminary Specification.

Our system would also be used in an aggressive strategy of purchasing oil and gas assets from the soon to be bankrupt producer firms. As it seems that is where we need to be headed with the current bureaucracy. Having those newly acquired assets loaded onto the Preliminary Specification, and then in turn producing profits for their new owners. Changing what is a failing business asset into a jewel is how real money is made and that is the opportunity that is being presented here through our offering.

I was shocked to read in a Bloomberg article of the following losses being reported by some of the oil and gas investors. The article entitled “Biggest Winners and Losers of the Oil Price Crash.” Noted the following.

Oil losses and year over year profits for David Rubenstein’s Carlyle Group (down 65 percent; Rubenstein shown here), Leon Black’s Apollo (79 percent drop) and Henry Kravis’s KKR (down 94 percent). The private equity gang had invested heavily in the industry during the boom years. 

I’m afraid to say that I don't see things getting any better for these funds. The losses that are being realized by these investors are going to be recurring as the ability and capability of the current bureaucracy to change is non-existent. They will not, can not, absolutely will never change their business model. It is impossible for them to do so. It has been five years in the natural gas business and they are at record production and soon to be record inventories. In 1986, the last time they had oil price declines. They suffered through it with systemic losses for 15 years. Without any changes made to the business during either of these past two instances, what has changed and what will be the difference as a result of the current oil price declines? Nothing. A shifting of drilling targets and throughput will not make any material difference to any of the metrics of the industry. If anything it will only help to focus the producers on the task at hand. Increasing their daily deliverability.

Investors have one option to make the changes to their benefit in the oil and gas industry. And that is to fund People, Ideas & Objects Preliminary Specification and realize the value proposition from the decentralized production model.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

We're on Trend Here Too, Part II

As promised we have the McKinsey article that shows that People, Ideas & Objects is on trend in terms of the technological aspects that are occurring in the marketplace. Specifically the Preliminary Specification will see the movement of the administrative and accounting resources of the producers move from the producers themselves to the service providers. This will change the dynamic of the industry in fundamental ways. Making the administrative and accounting resources an industry wide capability that is variable based on production. What is also included in these resources is of course the IT resources of the producer firm. People, Ideas & Objects being a cloud computing solutions provider, these IT resources will also be handled by the service providers, which includes us. Additional IT resources will be held within the producer firm in order to manage the earth science and engineering applications. However, from an administration and accounting point of view these will be managed through People, Ideas & Objects, the user community and service providers.

To the McKinsey article. It seems like there is little love being dispersed to the IT people at most corporations today. The article speaks to a general dissatisfaction with the job that IT is doing in corporate America.

On the whole, executives’ current perceptions of IT performance are decidedly negative. Beyond providing basic services and managing infrastructure, just one-third or less of respondents say their IT functions are very or extremely effective at a wide range of tasks. Even within IT, the shares reporting effective performance are small (Exhibit 1). The results also indicate fading confidence in IT’s ability to support key business activities, such as driving growth. In the 2012 survey on business and tech­nology, 57 percent of executives said IT facilitated their companies’ ability to enter new markets. Now only 35 percent say IT facilitates market entry, and 41 percent report no effect.

From People, Ideas & Objects point of view IT is a critical element of a producers strategy. It is not enough to own the oil and gas assets, today you need to have access to the software that makes the oil and gas asset profitable. In a sophisticated world that we find ourselves in you can operate in the cave man style of hiring bureaucrats. Or you can employ software to identify and support advanced specialization and division of labor such as the Preliminary Specification does. This is the role of IT in an organization today.

What the bureaucrats are increasingly focused on is the upgrade to Windows 10 and the role out of a new network topology. IT hardware, software and services of the organization. In terms of implementing those components in a manner that will enhance the organization's profitability, there is no hope of them going beyond the Microsoft claims of the value of Windows 10 in your organization. What is increasingly disturbing is that the McKinsey article is saying that they need to involve themselves in strategy. And that they are also doing the job of supporting the technology poorly. McKinsey should be careful they may find more and more bureaucrats will be cancelling the subscription to their research.

What is needed is a new approach. The industry is failing. Chris Grisanti stated on Bloomberg that the last supply side pricing decline was 1986 and it was sustained for 15 years. I remember those days and it was not something that the industry wants to relive. If you think that producers will soon change their mode of operation check back in 15 years and see if they have. 15 years is what they went through with previous low oil prices without making any strategic or tactical changes. They are certainly well prepared to do it again. Who is going to stop them? Unless I'm mistaken and the sole purpose of the oil and gas business is to generate losses.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here.