Industry Update
What we do know is that these producers can’t, won’t and will not ever subscribe to the Preliminary Specification as the resolution of their issues. Which wouldn’t matter anymore anyways. We are of the belief that they’ve moved beyond the point where we’d be able to help them. We have chosen to pursue other methods of implementing our solution in the oil and gas marketplace and believe fundamentally that these financial statements are the beginning of a meltdown in the industry. Who will jump in to support them? Both the investors and bankers have been absent and unwilling to participate for years. They too can see that the amount of capital necessary to fix this problem is well beyond the capacities of the investment and banking communities. Even if they did re-invest the producers would only regress to their old behaviors, resume their typical operations and be back at this same spot in as little as five years, wasting the trillions that were given to them now. They are beyond hope.
Prospective members of our user community must realize the time for them to act is upon us. It will be our collective action that will be looked upon as the method that the industry is able to rebuild itself. There is no shortage of hard, difficult work in which we need to do. Preparation of your application to the user community should be your first priority with an understanding that action may be called upon us much sooner than we’re prepared. Our preparation as a community is the most effective thing we can be doing. It begins the process of software development and brings us closer to the day we deliver our software.
These excessively bloated balances of property, plant and equipment are dead weight that will pull these producers down faster than in a normal environment. If an investor were to look at a producer with the prospect of investing they would see those bloated assets supporting the large number of shares outstanding and prior capital raised. Demanding the new investors spend large amounts of capital for half and quarter percentages of the outstanding number of shares. Exciting. Investors know that these bloated numbers represent the unrecognized capital costs of prior production and their investment dollars are in essence only providing working capital for the producer to keep the lights on for a few more quarters. Very exciting. If the producers attempt to eliminate these bloated balances they’ll only show the world how spendthrift they’ve been and end up recording losses that exceed the entire capital structure of the company. The only thing I think they can do is keep going until people’s paychecks bounce and then move on to another industry.
This is a very tragic situation. I am unaware of any industry that has so destroyed capital in this fashion. For four decades money has been raised and spent with no respect to value or understanding of profits. It may become obvious to most what has been going on for many decades now. But I’m happy to have been the thorn in the side of the industry for these past 14 years. They knew what I was talking about and instead of doing anything about it they did everything they could to silence me. My point is that all of this was unnecessary.
The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry 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 our future Initial Coin Offering (ICO) that will fund these user defined software developments. It is through the process of issuing our ICO that we are leading the way in which creative destruction can be implemented within the oil and gas industry. 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.