Options for Investors
I sat in amazement in the 1980’s and 1990’s when all of the producers, and I mean all of the producers, continued to overproduce oil into the marketplace. It was clear to me that if each producer was to shut-in some of their production, and only a very small percentage of it, then they would experience significant increases in price, revenues and finally earn some profits. This never happened and the producers only complained about how bad it was and waited for the market to “rebalance” itself. After what I think was at least 15 very bad years the market rebalanced itself and things resumed somewhat with prices that at least covered costs. Why did they continue to overproduce? Because that is the way they are structured. They can do nothing but produce at full capacity at all times. What would enable the producers to change to a more appropriate method of organization? What was that method of organization? And could it continue to meet the needs of the marketplace and to also earn a profit?
Then in May 1991 the vision of the Preliminary Specification came to me. Now not in a coherent, expressible way that made sense. I knew however that given time I would be able to solve this problem. I also knew that software was the means in which to implement the solution. I then started out with these ingredients, built a team, promoted Oracle on this vision and raised some money. We then began developments on a solution to solve this vision that I had. The history of the next six years is well documented in this blog. Unable to continue with the software developments, I was still able to work on solving what eventually became to be known as the “business model.”
In 2000 I started my MBA with the specific purpose of fully vetting my ideas through the process of that education. It was in the process of writing the proposal for my thesis that I finally determined that the Joint Operating Committee was the key organization construct of the dynamic, innovative, accountable and profitable oil and gas producer. I then ran around town announcing that it was the Joint Operating Committee that was the answer to the problem and most people looked at me and asked what exactly was the question. Many of the very senior people in the industry fully understood the implications of using the Joint Operating Committee. I also knew that although I solved the problem, the implementation needed to be determined. That is, what would the industry and the producer look like and operate as if we adopted the Joint Operating Committee as the key organizational construct.
The Preliminary Specification which represents the codified research that determines what the industry and producer would need to look like and operate as if we adopted the Joint Operating Committee as the key organization construct was completed on December 20, 2013. It total’s 175,000 words and is based on the 1.5 million words of my research that have been published on this blog. That was a little over two years ago, based on a vision that I had almost 25 years ago, about an issue that I saw in the industry around that time. Some may think I haven’t done enough, but then I’m the only one who did anything.
The point of this history lesson is that the bureaucrats have rejected the Preliminary Specification in its entirety. It eliminates the bureaucracy through the technology that disintermediates the industry. A phenomenon that is happening in every industry, and one that is being battled between the old and new ways of doing things. If there is to be a third way that is generated to operate the industry. That is if you think the bureaucracy is as much of a dead end as I do. To generate a new implementable business model could be available as soon as 2041. I wonder what things’ll be like then?
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.