An Olive Branch, Part II
This can be done by entering into a subscription to the Preliminary Specification. This subscription denotes that the producer is engaging in the necessary steps that are required for them to participate in funding our budget and the activities involved in developing the Preliminary Specification of People, Ideas & Objects. Subscriptions are calculated monthly and paid annually on each producer entering the program. Once the producer subscribes, their name will be published in the wiki with the other producers who have subscribed. Subscriptions for 2015 are open until December 31, 2015. Warning, any producer that subscribes, however does not participate in the funding of the budget in the long term, may be deemed to be manipulating their stocks value.
The situation as we detailed yesterday is that these producers have no solution to the issues that are seriously affecting their survivability. In the next month they will be faced with three detrimental actions that will put producers in further jeopardy. The first is the natural gas volumes being produced are about to exceed the continents storage volumes capacity. This will have long term and negative impacts on the natural gas prices. These prices are barely able to cover the cash costs of a producer as it is. Any further declines in natural gas prices will further cannibalize the producer organization. Secondly bank reviews of their loans to the producers will be undertaken to see if they are performing, or in breach of any of their covenants. The past review in April was of minimal disruption, however, that was primarily due to the hedging of the commodities that were still in place. Third, the third quarter report will have to be published. The third quarter will be particularly difficult as we mentioned in the second quarter. The hedging has now for all intents and purposes expired. The producers are fully exposed to the depths of the commodity price declines. We should expect to see some significant and serious destruction.
The bureaucrats have managed the industry well. There is no good news to go along with this trifecta of difficulties. If only they could quickly and easily find a solution to the deep seeded issues to these problems. One that would inspire confidence in the producer that all will be well, in time, and that there is a plan of action. (I feel like I’m selling moonshine out the back of an old Ford truck.) This is possible if the producer does subscribe to our option. The means to do so is to call me at the number that can be found on this blogpost. Then we can calculate your rate and arrange payment. It will be at that time that the producers name will be posted on the wiki, and we will promote the company as a participant in the development of the Preliminary Specification.
Without this olive branch I don’t know what the producers are going to do. Confidence is a difficult thing to lose. It’s an even more difficult thing to earn. I think though that that is what we will be talking about. The confidence in the bureaucrats who are running the oil and gas industry. There has been a lot of support that things would be o.k., that things were under control, to only see things continually get worse and much worse isn’t confidence inspiring. This quarter may be the point where the confidence in the industry is lost. It may not. I don’t have any horses in that race so it makes no difference to me. This is an olive branch, pure and simple. If the bureaucrats want to ignore this opportunity then that is their choice and their risk. I only know that in time, the confidence will be lost in them and the solutions that we are working on here at People, Ideas & Objects will provide for the answers one day. The question is where will the bureaucrats be. In this “option” scenario they get to stick around until we build our software. This would make things easier for us by taking some of the pressure off in terms of our delivery date. And that is my motivation in extending this olive branch.
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.