Best Business Opportunity, Ever, Part XXXI
Shale is the variable that needs to be considered for the future. The important number to remember is that the U.S. holds all of 17% of global shale based formations. Everyone today it seems is walking around with 5 - 6 tcf of natural gas in their pocket. Trying to get that gas to market as quickly as possible. The situation in oil is a few years behind the developments in natural gas but maybe we’ll see similar developments there. What is there in this moral and ethical world of the existing oil and gas producer that enables them to produce this oil and gas? There are no restraints. Its beg, borrow or steal to get the reserves into production so that the producer can realize the revenues. Anything for that cash. This is the fact of life in the business today. The industry is now based on abundance and not on scarcity. In this race to put all of the oil and natural gas reserves onto the market as quickly as possible the destruction of the industry is a given. And that is what and where we are today.
Welcome to the moral and ethical world of the North American producer. It’s just too bad if you happened to choose geology or engineering for a career. Or decided to work for an oil and gas producer or service industry provider. Your sacrifice and suffering in order that the producers meet their moral obligations and ethical standards are what you signed up for, live with it. They won't control themselves and impose any production discipline as it’s inconsistent with their ethics. Misguided as they may be. Well it doesn’t have to be like that. Producers need to think about the business that they’re in. The way they are operating it, they are certain to erode the infrastructure even further. It's time to consider the facts.
Overproduction and oversupply are now a constant in the marketplace given the characteristics of shale reservoirs. Production allocation across the industry is necessary to ensure that the markets are not overwhelmed by the overproduction and oversupply. If production allocation were implemented it would qualify oil and gas as a business. People, Ideas & Objects Preliminary Specification price maker strategy operates on the basis of two simple principles. If the property shows that it is profitable, based on an actual detailed accounting, than the property produces. If it is not profitable then it is shut-in. Contrary to today’s morally and ethically superior oil and gas producers determination that this is collusion, it is not. Individual decisions, based on accounting facts, at the property level are not collusion. Its business. What business produces everything that loses money, other than oil and gas that is.
With today's administration the industry will be destroyed but these people can at least say they were moral and ethical in their own minds. Others will say they were misguided. Which opens the best business opportunity, ever for the startup oil and gas producer. You can assure your shareholders and bankers that nothing will be produced that isn’t profitable. That you are focused on providing them with the most profitable means of oil and gas operations. And do that with strong business practices and higher morals and ethics. Higher because you won’t be deliberately causing so much misery.
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.