Tuesday, October 18, 2016

Best Business Opportunity, Ever, Part XI

The evidence that the startup route in oil and gas is the appropriate direction can be seen by these three startup announcements. (Here and here.) Backed by Blackstone and Quantum Energy Partners, Jetta Operating Company Inc, Guidon Energy and Sentinel Peak Resources California LLC were endowed with $1.8 billion. Sentinel has already leveraged their investment to purchase some properties. Now that super star engineer, the one that was passed over for COO at the large independent, who never lost a dollar of the company's money, passed over because he wasn’t as good at the big game politics, is thinking. What if?

I want to stress the difference in the way that the industry will be operated in the future will be on the basis of profits. Real, cash generating profits. That is why the investors are going with the startups, they believe in creative destruction as much as I do. The only way that we are going to keep the focus on profits is through the use of the Preliminary Specification. And I don’t want anyone to come along and say, ok put it in place. It needs to be built with someone's money. A big part of the way in which the industry operates profitably is the value proposition of the Preliminary Specification. Without it, you’ll have a remake of what we have today.

There are trillions of dollars that are available to the producers who use the Preliminary Specification for the next 25 years. This is the upside they receive for investing in the capabilities of having People, Ideas & Objects, our user community and service providers operational. Our compensation is defined in our budget. And I have to say that I am very pleased that I am bringing such a large monetary solution to what can only be described as the biggest issue the industry has ever faced. Information Technology is the means in which all industries are now operating. Without IT business and industry is in the dark ages. Use of the Preliminary Specification will bring the oil and gas industry well into the future of IT functionality and process management. People, Ideas & Objects also provide a permanent, dynamic software development capability to the industry.

Don’t cry on my shoulder if you miss out on this industry wide opportunity. I’ll be busy, as will many with the fortitude to make the leap of faith necessary to change the oil and gas industry. If you're not busting out of your skin right now then I suggest you stay where you are. The winds of change have become a category 5 hurricane wrapped up in a tornado. The opportunities for the people who are capable of establishing a startup oil and gas producer have never been better. The opportunity for those to participate in the development of the Preliminary Specification as a member of the user community exists today. Part time work that is an inherent part of the service provider organization that you’ll establish to provide the administrative or accounting process that you’ll conduct for the entire industry as your client base.

It doesn’t matter what discipline you're from the opportunities are open to everyone. The opportunity to invest in a startup oil and gas producer and service provider organizations is also available to everyone. If you think this much change is going to be a little chaotic, you're correct. If that excites you then there really is no choice but to participate. Creative destruction is inherently chaotic. It is the entrepreneurs, the people who can see their way through the disaster, who will make the difference in terms of the time and intensity of the chaos.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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

Monday, October 17, 2016

Best Business Opportunity, Ever, Part X

The establishment and development of a new oil and gas producer has been determined to be the best business opportunity, ever. The level of destruction that has occurred in oil and gas has been complete. What we have left are carcasses that have been hollowed out by losses that by any measure are catastrophic. Most if not all producers have, or will have, destroyed their capital base in this downturn. The net, sum total of the producers existence has been to destroy all of the money that was ever given to it. The only things that are left are a collection of assets whose operations consume cash to produce, and debts that far exceed any operational performance possibilities. The dire nature of the existing industry contrasts with the upside of the startup oil and gas producer.

When you begin your startup what will be your area of operations? What will be your expertise and capabilities? These will form the foundations of your competitive advantages for the lifetime of the firm. The existing producers have opened the proverbial WalMart of properties on offer. You can have whatever you want, and for some of the best prices ever seen in the industry. Just remember to time your closing to the seller's debt payment schedule. That way you’ll force the issue and secure the property.

Recall that Chesapeake “sold” their Barnett shale assets for the right to get out from under a $300 million annual cash drain. Consider that the economics of a startup are different than the existing producer. If a startup were to have purchased these Barnett shale assets they could have instructed Chesapeake to shut them in prior to close. The startup would then be incurring a “null operation.” No profit, but also no loss. There are other considerations to consider, such as technical capabilities, but the startup can build those subsequently over time. The point is there are two extreme economic dynamics in play between the existing and startup producers. These economic dynamics can be leveraged by the startups.

As a new oil and gas producer you have much to offer an investor, banker or bondholder. Zero dilution of their investment from a history of bad management and total destruction. The history in the industry is that producers never wanted to account for the capital they used in the business. So they didn’t. As a result their asset values ballooned, or is that a bubble? And their earnings soared. Making it appear like a profitable industry. This has been the case for almost forty years and is the culture of the industry not to consider capital costs in assessing performance. They believe capital costs are “sunk costs” and are therefore irrelevant. The fact that operating a business on this basis creates significant shortfalls in real earnings and cash generation didn't matter. The implications of doing that were offset by the annual share issues that every producer seemed to participate in. Trillions of dollars have been invested in the North American oil and gas infrastructure and it can’t generate $0.02 in earnings. Those being the real type of earnings that the startups will be able to earn, not the fake type of earnings that producers have been claiming for the past forty years.

The investors will have to deal with their past investments in their own time and place. What we can do is provide them with the necessary changes in the industry that will ensure that their future investments are managed appropriately and establishing the value that is available today. That being securing the producing infrastructure of the industry, the value proposition of People, Ideas & Objects Preliminary Specification and the ability to increase the throughput of the industry and achieve energy independence in North America. The point is we are not going to be getting anywhere with the producers that we have today. They are waiting for the mythical market to rebalance. What we need to do is to turn all of the industries production profitable at all times. Then expand the capabilities and throughput of the producers within the industry. And then look to secure the energy independence that shale provides. Without establishing profitability first, none of the rest is ever going to happen. Ever.

And when we talk about profitability we mean that all production that is produced is always profitable. Not just some of the time. Oil and gas commodities are price makers. These commodities react quickly and substantially to shortages and surpluses. What we need these startups to do is to do the rational thing of determining if a property is profitable, based on a detailed accurate accounting, it produces. If it is unprofitable then it will need to be shut-in which will incur what we call a “null” operation. No profit, but also no loss. Under the Preliminary Specifications decentralized production model all of the producers costs are variable. No production = no revenue, no royalties, no operating costs, no overhead, a null operation.

Existing producers seem to think that losing money on all of their production 75% of the time is acceptable. This is the culture of the industry. If you think you can change the culture of the industry, don’t count me in. Creative destruction is the tool that we are using to make this change. The existing producers have exercised the destruction part of the equation to a level that I didn’t expect was possible. They really made a mess of the place. Which makes our job easier and more exciting, so what are you doing?

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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.

Friday, October 14, 2016

Best Business Opportunity, Ever, Part IX

The choice that people have today is to participate in the development of a new startup oil and gas producer. With all the upside we documented yesterday. Or we can stick with the current producers and rehabilitate them into viable organizations once again. The question is, in ten years from now, which would be the better choice? By choosing the startup route the industry would fund its development during that time by the profits that the startup earns on production. We also know that by keeping with the status quo we will continue to depend on investors to provide the working capital for the industries survival. What are the other differences in terms of this choice that we have at hand? Which is the preferred route to take?

Choosing the startup route has implications for all of the people that are involved in the oil and gas industry. First we should all think of ourselves as investors in one of those startups even if we are unable to participate directly. Secondly People, Ideas & Objects have demands for software developers, administrators and accountants being reconfigured to accommodate these startup organizations. Our user community and service providers being business opportunities themselves that will depend on the entrepreneurial spirit of the people involved in those organizations. By realizing the best business opportunity, ever, we are providing for business, investment and employment opportunities that can only be described as substantial for all involved in the industry.

It's always difficult to determine when the last round of layoffs will occur in a downturn. Things look relatively more positive in the industry since Opec announced their agreement to limit production. I’m seeing a lot of premature declarations that the difficult times are over now and some claims suggesting that shale will make up any reductions that Opec undertake. Our current producers can’t, won’t and will not ever change their behavior or understand that they’re a large part of the problem regarding oversupply and overproduction. Resumption of standard operating procedures is the implied consequence of these comments. There has been plenty of opportunity to change in the past decade. Nothing has been considered, and I can assure you that nothing ever will. This is why creative destruction is such a critical difference to the performance of our society.

It may just be me but I see the implications of today’s losses and difficulties in oil and gas as being fatal to the current producers. They have suffered a terminal event. One in which they are unable to recover from without superhuman effort and skill over a sustained, extensive period of time. With massive investment. Their operations demand cash to operate and will continue to do so. They are unprofitable even though they have employed significant volumes of capital. They’re operated as if they are viable going concerns, however, due to accounting foolishness have never performed as such. This culture has been systemic for four decades and is responsible for the leaderships misunderstanding of performance and accountability. The significant event that has damaged these producers has been perceived as a minor bump in the road, with regular operations resuming soon. I see no change in the operation or outlook of these producers. They will exist in a cash deficient environment where selling assets and producing as much as possible are the only means to keep the lights on. Their destiny is to contract rapidly with the most successful being able to shrink their debts proportionately.

In terms of the startup, they will be establishing their firms on the basis of a different operating model. The Preliminary Specification focuses on real profits and not the artificial accounting profits of the past four decades. Purchasing assets from the current producers will enable them to establish themselves in the industry and build their organization through the deployment of their profits. They will be able to leverage themselves over the next decade with debt based on solid financial performance. Taking the opportunities that we discussed yesterday to purchase the existing producing infrastructure, the value proposition of People, Ideas & Objects Preliminary Specification and the upside as a result of achieving energy independence in North America. They will be able to grow quickly and profitably over the decade to position themselves as a producer that have the skills, capabilities, profitable operations and dynamic nature to approach the subsequent fifteen years as an established producer in the industry.

I think the choice is clear. What are you going to do, start a new oil and gas producer, or rehabilitate an existing one for ten years with massive capital infusions. After ten years you’ll probably be able to have the existing producer standing on its own by itself. And the opportunity to start a new oil and gas producer passed ten years ago. After a decade where the upside has been as promising as the best business opportunity, ever provides. I can assure you the startup will be the more dynamic, capable, profitable and larger firm.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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

Thursday, October 13, 2016

Best Business Opportunity, Ever, Part VIII

The competitive advantages of a newly created oil and gas startup are substantial. They include the ability to purchase the industries existing infrastructure of producing properties from the cash poor, failed producers of today. Realize the $25.7 to $45.7 trillion value proposition from using People, Ideas & Objects Preliminary Specification. Participate in the opportunity to further grow their firm based on achieving the overall objective of North American energy independence. Doing this in a manner in which all production will be profitable, based on an actual, detailed accounting of the property. Never before has such an opportunity been presented to those with the capabilities to participate in founding an oil and gas producer or making that investment in the startup. Now is the time to leverage these elements of value and to act to realize this opportunity for the next 25 years.

We should thank the current producers for messing things up so badly. Investors putting money into the current producers would have to be hell bent on losing it as quickly as they can. What upside is provided by an investment in one of these companies. The opportunity to line up with thousands of other investors if there were ever any dividends. Share any upside with so many investors that you end up with next to nothing! This of course assumes that the producer will have the good fortune to have “cash flow” to pay the interest and debt payments that are due. The history of the industry is that capital investments were always treated as a “sunk cost.” Not to be considered in the forward thinking decisions. While at the same time, the other hand was always stretched out taking the money that was raised in the most recent stock offering. They took the money but never wanted to account for it. Now, they have the legacy of billions of shares outstanding and debt so high that it's about to sink the ship. Leaving the only opportunity for the investors is to treat the existing producers as “sunk costs.”

The existing producers need cash. Flooding the marketplace with production is the easiest method to raise the cash that’s needed. The other method is to sell properties. There are a lot of desperate, cash hungry producers out there. The ability to purchase a property off of them at fire sale prices is rather easy. Just check their debt payment schedules and time your offer so that you will close the deal just before the debt payment is due. Guaranteed purchase. Investors are more interested in this due to the fact that the startups have no capital structure. They have no legacy of debt or history of an annual shareholder fleecing. Investors can take a controlling position in the firm and manage it in a way that avoids the difficulties that the industry is in today. Or, in other words, still have a controlling position in the producer in 25 years based on today’s initial investment! A startup oil and gas firm is a highly competitive offering to an investor in comparison to the existing producer.

Doing the same thing expecting different results is a sign of insanity. The startup oil and gas producer will therefore need to be using People, Ideas & Objects Preliminary Specification to operate their firm. Reestablishing the industry on the basis of profits. Real profits, not the fake ones the current producers have been reporting. As a result the startups will be the ones who are able to earn the value proposition that People, Ideas & Objects have identified. This value proposition is calculated to be in the range of $25.7 to $45.7 trillion over the next 25 years. The key element of this value proposition is our price maker strategy. Instead of dumping all of their production onto the commodity markets and watching the prices collapse for 75% of the time. The startups will have detailed and accurate accountings of each property. They will be able to determine which properties are profitable and which are not. Shutting-in the unprofitable properties which will remove the excess production from the commodity markets and the commodity prices will therefore find their marginal cost. The differences in commodity prices between these two methods of production, our price maker strategy vs. chronically overwhelming the marketplace, is the majority of our value proposition. Which is inherently understandable and logical to those who don’t manage a current producer.

Everyone can see the opportunity for North America to become energy independent in both oil and natural gas. Shale provides. There is no way that investors are going to fund a bankrupt industry with producers who don’t have a clue what a capital cost or a profit is. Expecting this industry to increase its throughput at investor's expense is a non starter. Energy independence has to be achieved on the basis of a profitable industry. It’s the only way. It’s really the only way to run an industry but that hasn’t happened in oil and gas for more than four decades. Expecting that the investment community that has supported all of the unprofitable activity in these past four decades, to continue and expand the throughput without profitability is about as ridiculous a notion as there is.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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

Wednesday, October 12, 2016

Under The Weather, Part II

No posting today.

Tuesday, October 11, 2016

Under The Weather

No posting today.

Monday, October 10, 2016

Canadian Thanksgiving

No posting today.

Friday, October 07, 2016

Best Business Opportunity, Ever, Part VII

Startup producers that are forming today will have significant competitive and capital structures in comparison to existing producers. Investments into these startups will ensure that the money that is invested will provide their investors with large, and maybe even controlling interests in the startup firm. Allowing the startup to participate in the market for oil and gas properties as a buyer. We expect, with commodity prices below their operating costs, the demands for cash to cover these operational shortfalls will maintain the market for properties as a buyer’s market for the foreseeable future. This represents what we consider to be the best business opportunity that has ever existed in the oil and gas industry. The time in which to act will therefore soon be upon us.

It’s difficult for me to understand any desire to continue with the producers that exist today. They are hollowed out carcasses that have experienced a terminal ending to their existence. When a “strong” independent such as Apache reports annual losses of $28.2 billion for 2015. Or when a former darling such as Chesapeake reports annual losses of $19.1 billion. And they continue to both generate significant losses for 2016. We see the functional end to the business model that these firms employ. These firms will continue to function as long as there is the ability to raise some cash to meet payroll. Whether increasing production or selling properties, it doesn’t matter, what the critical focus is to raise cash in whatever manner. The startup however has tactical and strategic advantages that are far more appealing than this cannibalizing and suffering.

Doing the same thing over again and expecting different results is a sign of insanity. What is there to ensure we don’t return to the destruction this industry has been responsible for. We need to ensure that the Preliminary Specification is the basis of the new industry. With its focus on profits so that the industry can grow and prosper. So that people who work in the industry will know that their employment won’t terminate as a result of external events like low commodity prices. Where investors can safely invest based on their understanding of the earth science and engineering capabilities of the producer. And society can be provided with the resources it needs to fulfil its possibilities. None of these things is available from the current lot.

So what happens now. We saw in the second quarter reports the viability of the producers being clearly displayed. The demand for cash is horrendous. An industry in that position will not attract the capital that is needed to keep the lights on. It is a slow painful march towards the inevitable demise of the firm. The sooner we realize we are at the end the better off we’ll be. But history doesn’t work that way. It is, as Winston Churchill stated.

Want of foresight, unwillingness to act when action would be simple and effective, lack of clear thinking, confusion of counsel until the emergency comes, until self-preservation strikes its jarring gong – these are the features which constitute the endless repetition of history.

I am not of the opinion that Opec has an agreement in mind. Their strategy has cost them many billions of dollars. The North American producers are at a tipping point, and that is the point that Opec blinks? They are more playing with the market and people’s expectations. The belief that these difficulties have passed is a hard one to overcome. If Opec doesn’t put a deal together, coincidentally around the time that the third quarter reports are issued, maybe then we’ll here that jarring gong. I expect the third quarter reports to represent a significant decline in the health of the industry. No one has ever made any money in oil and gas for over 40 years. The demand for capital was constant and chronic in order to supply it with the cash that it needed. With these last two points I’m of course talking about how the industry was in the “good times.”

This is the point in time in which your personal preparation towards the future will pay significant dividends. Starting a new producer, applying to People, Ideas & Objects user community. There are more business opportunities in oil and gas now than I’ve ever seen in its entire lifetime. It is this point where it becomes evident that it’s over, that we will then proceed with the developments of the Preliminary Specification.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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

Thursday, October 06, 2016

Best Business Opportunity, Ever, Part VI

What we see in the response of the producers to the difficult times we are in. Is the cultural capabilities of the industry. To accommodate the changes to correct the situation would require this cultural inertia to be overcome. Which of course is not possible. If we don’t change what we will find is in four or five years time the same situation will be plaguing the industry and the same complacency will be evident in the producers. The changes needed to deal with overproduction and oversupply are beyond what the current producers are capable of. They can’t, won’t and will not ever change. The only method that has proven itself are the forces of creative destruction. As the old no longer meets the needs of society, the new will be able to generate value in different ways.

In terms of that complacency or acceptance of the way things are, these being ever present in the industry. I am reminded of a quote from Winston Churchill. On May 19, 1943, a full year before the second European front was launched, Churchill told the U.S. Congress regarding the war effort.

No one can tell what new complications and perils might arise in four or five more years of war. And it is in the dragging-out of the war at enormous expense, until the democracies are tired or bored or split, that the main hopes of Germany and Japan must now reside. We must destroy this hope.

People, Ideas & Objects have a lot of work to do. Our budget is based on 5,000 man years of effort to bring the Preliminary Specification to commercial release. All industries and companies now operate solely on the basis of the software that they use. If you want to institute a change in behavior of the industry or producers, first it must be captured in the software that the industry and producers use. We live in a time where the software defines and supports the organization. Change is impossible without changing the software first. So when we talk about change, complacency, the scope and scale of our development efforts. This won’t be done with the flip of a switch and then all is well. We have hard work to do. It should be the expectation that the difficulties in oil and gas will continue until such time as People, Ideas & Objects Preliminary Specification is operational. We can blame the Saudi’s for all of our troubles, however it should be understood that they don’t import any natural gas into North America. And the difficulties in natural gas are going into their seventh year with no prospect of anything changing. It’s not a matter of us getting “tired, bored or split.” It’s much more, shale has fundamentally changed the industry.

Energy powers our economy. It is a viable option for the North American continent to achieve energy independence. However not from the current industry configuration. Changes as represented in the shale based reservoirs are fundamentally transforming the business from scarcity to abundance. What bigger change could there be? I saw the mechanisms leading to the oversupply and overproduction evident in the 1980’s and 1990’s low oil prices. A time when oil prices depressed the industry. Where no leadership or action left the industry to suffer for more than a decade. The configuration of the producers today remains the same and is inappropriate for either an industry with or without shale. Shale only makes the issue hypercritical.

Software makes society more complicated. To leave “things” to be resolved by themselves is inappropriate when the organization is defined and supported by the software that is used. To effect change cannot be done without changing the software first. Today ERP systems lock the organization and seal it in concrete. Producers will be unable to change without the defined software development capabilities of People, Ideas & Objects. Oil and gas have ceased to change in ways that provide value. We need to be proactive in our software developments in order to grow and prosper. I have frequently referred to these oil and gas overproduction and oversupply issues to be that of a modern software bug. And that is why starting a new oil and gas producer today is the best business opportunity, ever. Creative destruction is the last and only tool that we have to make the changes that are needed.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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

Wednesday, October 05, 2016

Best Business Opportunity, Ever, Part V

Once the Preliminary Specification is operational in the industry it will be the new startups that will reap the benefits from it implementation. Organizing a new oil and gas producer today is by far the best business opportunity, ever. The existing producers have destroyed their competitive and capital structures. They are now unable to compete in the industry and they will not be supported by a plurality of the investment community. Their demands for capital just to produce is beyond the appetite of those that are intelligent investors. Establishing new startups will be able to offer high percentages of their firm without their new investors realizing the massive dilution that the existing producers well established shareholders and over indebtedness provides. And enable the investment community to leverage the demise of the old oil and gas industry through the purchase of properties being sold by those cash poor producers. Creative destruction is the process that has renewed many industries. All that is needed then would be for a way to avoid the same issues that plague the producers today.

The focus of the new startup is on profitable operations. Profitable from the point of view of considering all of the costs of production. Capital costs have traditionally been ignored by the existing producers as a “sunk cost,” and as a result, were never considered in business decisions. These “sunk costs” representing the investment capital they were entrusted with. This is what has caused the overproduction and oversupply that we have today. Investors were led to believe that the industry was profitable based on the gross margins that are quoted by the producers. This accounting sleight of hand is still in play today. The difficulty in accounting for your operations inappropriately is that it eventually leads to difficulties when the investors find out that things were not as they were represented. Then they stop investing, which is where we are today.

The only way that the new startup oil and gas producers will be able to capture that old time religion of profits is by implementing the Preliminary Specification. Where dynamic, innovative, accountable and profitable oil and gas production is the focus. This is done through the eleven modules of the specification that address the specific issues of the industry today. And they provide a dynamic capability to the industry in terms of addressing its future administrative, accounting and operational issues. It eliminates the “muddle along” strategy that is used throughout the current oil and gas industry and replaces it with specific capabilities that resolve those issues. One of the key capabilities that is gained is what we call the price maker strategy.

Our price maker strategy uses the fact that the oil and gas commodities are “price makers” in terms of the impact that they have in the marketplace. Excess production has a material effect on the pricing of the commodities. Instead of producing everything and expecting that the market will “balance” or some other such nonsense. The Preliminary Specification enables the producer to produce only profitable production. Profitable based on an actual, factual, historic and detailed accounting of the facts. Then producers who have properties that are unprofitable simply shut-in the property. Incurring a null operation, no loss but also no profit. Doing this ensures the producers profitable properties are not diluted by any unprofitable properties. Saves those reserves for the time in which they can be produced profitably. Removes the marginal production from the commodity markets. And keeps the cost of the property from having to carry the additional losses that would otherwise have been incurred as an additional cost to be recovered in the future.

Existing producers run away and hide when they hear the term “price maker strategy.” They don’t like to think in business terms. The industry is a science experiment that operates in the sense that everything it does brings more production on stream as soon as possible. When they hear “price maker strategy” they think collusion. If you chose to not produce a property because it is unprofitable that is called common sense. When that decision to not produce is based on the actual, factual, historical and detailed accounting of that property. I am at a loss to determine how that is collusion. What’s really going on is the inability for new ideas to permeate the stale existence that is the oil and gas industry. And the preference being to destroy the industry as opposed to consider these new ideas. Or, that calling it collusion is the only thing they can think of to offset their ridiculous behaviour of producing everything and destroying the industry.

Taking an industry with this twisted and convoluted means of logic. Establishing a new producer to compete with this insanity is the opportunity that is available to those that can see the value of implementing the Preliminary Specification. How could you lose with this bunch? And that is why this is the best business opportunity, ever.

The Preliminary Specification, our user community and service providers provide the dynamic, innovative, accountable and profitable oil and gas producer with the most profitable means of oil and gas operations. Setting the foundation for North America’s energy independence. 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