Operations Management Module, Part II

 Oracle

People, Ideas & Objects have selected Oracle as the base Information Technology provider of the Preliminary Specification. Using Oracle Cloud ERP as the foundation, with all of their underlying technologies, which holds the premier spot in terms of enterprise technology providers. Oracle recently began moving towards heavily automating the processes to build substantial value for organizations throughout the business world. Taking advantage of their comprehensive solutions to partner with J.P. Morgan Chase to use their credit card in the recording of corporate expenses throughout the expense reporting process. When an employee uses this credit card they can designate the charges destination and Oracle will process it to ensure it fits within the companies eligibility policies. The individual will not have to spend the many hours filling out expense reports. Others won’t need to review them and the payment of charges will be handled appropriately. Eliminating the many thousands of hours consumed in the yearly process of expense reporting to a few milliseconds of processor time. Additional process automations are being undertaken for logistics with providers in those industries. 

These automations will be comprehensive in nature and will build upon themselves as users realize the combinations and permutations of the various processes and how they’re related. The value earned by those firms that are able to move to this architecture and organize themselves in this manner will be able to reap substantial rewards in performance, productivity and profitability.

This is the same undertaking that People, Ideas & Objects, our user community and their service provider organizations are conducting with the development and implementation of the Preliminary Specification. The difference between what we are proposing with the Preliminary Specification and what Oracle are doing is they are providing the generic business processes and we are proposing to tackle the North American producers specific oil & gas attributes. Having the full stack of unique oil & gas and generic business process automation being handled and constantly iterated upon for the purpose of enhanced productivity and profitability. 

People, Ideas & Objects et al have targeted the North American oil & gas producers as the market for our Cloud Administration & Accounting for Oil & Gas software and service. We have further defined this market to include Exxon Mobil and Chevron down to the startup that began at the breakfast table this morning. This appears to be an impossible and misguided ambition when we consider that Oracle Cloud ERP and their underlying technologies are amongst the most comprehensive and technically difficult Information Technologies to support and use. Which we would agree. However we would note that the configuration of our user community and their service provider organizations provide the software and services to support the producers. We would ask under the basis of this configuration, what would preclude the small startup oil & gas organization from realizing the benefits of using People, Ideas & Objects for the management of their expense reporting with the Oracle / J.P. Morgan Chase credit card integration we just highlighted?

Such was the theme that was evident and became abundantly clear during Oracles CloudWorld 2022 conference. It was there they unveiled the comprehensive nature of their offering and the drive to move in this direction. A drive that has prompted this rewrite of the Preliminary Specification and the inclusion of the Operations Management module. People, Ideas & Objects believes that the promise of Information Technology has never been fulfilled as a result of the lack of maturity in the underlying base of the technologies. Oracle has worked diligently since its founding to put that architecture together and to make it robust. And are now able to turn it towards what everyone expected Information Technology to provide. It would be a shame for those companies that have become disenchanted with Facebook to believe that Information Technology is a false promise and will never deliver. Now is not the time to question the technologies but to understand the time that we are in and to act.   

Oracle CloudWorld 2022

Being bold is the way to win, that being timid could wipe you out.

 - Safra Catz, CEO Oracle 

End to end transformation is another common theme that I frequently saw throughout this conference. What purpose would it make to trim around the edges and try to resolve what are truly existential issues to the oil & gas organizational methodology used today. One of the many points that this conference reflected is that now is the time to act. Bold action at this point will enable organizations to realize the benefits of the disruption from Information Technology. It was stated in Safra Catz’s Keynote Presentation that it is not the time to issue a White Paper. In my self-interest, I see this as the time necessary to evaluate options will be too costly in terms of the long lead times to consider the opportunities and research the issues have passed. The time to implement a “plan” is now. The Producer's plan needs to be bold, it needs to address the issues that are causing significant difficulties throughout the greater oil & gas economy in North America. The plan needs to address the existential issues that challenge the current method of producer organization, the one that has summarily failed, has no support or future. And the only plan available is the one from Oracle, People, Ideas & Objects, our user community and their service provider organizations in the form of the Preliminary Specification. 

Oracle is the Premier, Tier 1 ERP Provider

What has been difficult to express in the Preliminary Specification is the robust platform that it is built upon. Oracle Cloud ERP is the premier tier 1 ERP solution in the marketplace. Which is easy to state and difficult to understand if you’ve never seen it in action. The nature of their product, the maturity of their technology and that easy to use Redwood interface has to be seen to understand that it is People, Ideas & Objects et al purpose to stand on the shoulders of this absolute giant. This referenced url will take you to Oracle’s Best Practice Demo Series where you can select a number of different videos to gain a basic understanding of the quality, fit and feel of Oracle Cloud ERP. I can not recommend highly enough that everyone should view the “Simplify Your Month-End Close by Automating Joint Venture Management” to learn the details of how comprehensive and high quality Oracle’s Joint Venture Management product is. It is by far the most comprehensive and the best Joint Venture Management system that is available in the marketplace today. And I am not aware of any North American producer using it. 

The Preliminary Specification has defined seven distinct Organizational Constructs. Our key Organizational Construct is the Joint Operating Committee which is the organizational structure that exists to deal with Joint Ventures, the cultural method to represent the partnership organizations established in oil & gas. When we move the current corporate models culture into alignment with the Joint Operating Committee, everything within the producer and industry changes. Nothing in oil & gas remains consistent with the way management operates the industry today. We are aligning the business directly on to the operational and technical cultures of how the industry operates for the past 100 years. This is a culture that is derivative of the partnerships that are represented in oil & gas operations everywhere. 

It is our hypothesis that in the 1960s when computers were introduced accounting became one of its uses. Soon after the tax, royalty and regulatory environments were added and soon the ERP systems only recognized the corporate organization and nothing to do with the oil & gas business of the business. A separation between the business vs the technical and operational areas grew and became a source of conflict that precipitated a lack of communications and two independent islands competing for control. Operations dominated out of necessity and the corporate elements were left to satisfy their demands for cash. That is what we’ve eliminated in the Preliminary Specification by aligning the business to the operations and technical culture and the Operations Management module is what and how that will be accomplished.

We are using Oracle’s recommended architectural method of “additions” to the base of all of the Oracle products that we will use. This way none of the code between their efforts and ours will cause any difficulties being released into commercial software if there are changes in either environment. Exploiting full use and value of the object oriented programming model. At the same time I can state unequivocally that both Oracle and People, Ideas & Objects are relational database developers first and foremost. 

Recently Oracle implemented a quarterly update schedule for Oracle Cloud ERP where incremental changes and upgrades are scheduled for release each quarter. People, Ideas & Objects will be participating in this quarterly release schedule for our own updates and have noted an added benefit as a result of the Preliminary Specifications structure benefiting from the Organizational Construct under the title “New Growth Theory.” That we are sharing the “non-rival” costs of the infrastructure of accounting and administration across the North American producer population. Therefore the need for each producer CFO to be heavily involved in these ERP changes each quarter can be reduced to a less onerous task when the industry can plan and implement the upgrades on a shared or non-rival basis. Innovation is incrementally increased through iterative developments. They are not big bang changes unless the organization is challenged by existential threats such as the oil & gas producer organizations are today, or through disintermediation.

We are not rebuilding an ERP system from scratch to bring about the Preliminary Specification. We are defining and catering specific oil & gas related software developments that are necessary to deal with the issues and opportunities in oil & gas today and the future. Configuring and augmenting Oracle Cloud ERP to do so. Reorganizing the industry to function on a performant and profitable basis. The Operations Management module combines the business, operations and technical groups into one functioning organization using the same data. Establishing the team environment necessary to collaborate within the producer organization as well at each individual Joint Operating Committee. Which is deemed a necessity to proceed into the difficult and challenging future where the most dynamic, innovative, accountable and profitable producers are provided with the most profitable means of oil & gas operations.

Oracle Supply Chain Management

As was just mentioned above, the underlying use of Oracle’s Joint Venture Management solution will form the base of what we develop in the overall Preliminary Specification. Each module of the Preliminary Specification has significant elements of the Oracle Cloud ERP suite of applications that provide the starting point for the work we’ll be doing for oil & gas. We are not recreating the wheel, only building upon it. And using Oracle’s defined method of development architecture that has their Oracle Cloud Fusion Applications and Fusion Middleware as the tools to enhance our additions and not through individual stand alone applications. We can accept this architecture as Intellectual Property is one of People, Ideas & Objects three competitive advantages. Our proprietary content is secured in published form. Therefore in terms of the Operations Management module we’ll be using Oracle Supply Chain Management as the primary base offering and include many other Oracle applications and features being carried through the connections with other modules of the Preliminary Specification. 

To gain an understanding of Oracle’s Supply Chain Management offering, it is a good start to review the following YouTube videos. 

Oracle developed their cloud based Supply Chain Management solution through the development and integration of their enterprise hardware manufacturing business that they purchased from Sun Microsystems. This development was also used to bring about a Supply Chain Management capability into the Oracle Fusion Middleware and ERP Applications which were and are the source of Oracle Cloud ERP today. One of the unique characteristics of Oracle’s hardware manufacturing process is that each order is Configure to Order (CTO) and delivery is made to 156 countries. Approaching the development of their Supply Chain Management module in this manner is consistent with Oracle’s past methodologies. What is commonly referred to in the software development industry as “eating your own dog food,” or using the software that you develop yourself, Oracle Cloud ERP is used throughout Oracle’s organization. 

At People, Ideas & Objects our user community provides for the most profitable means of oil & gas operations, everywhere and always. That is the motivation that drives what it is that we’re doing. Are producer profits from a “real” sense an adequate motivation for our user community to maintain their focus and commitment during the development, implementation, service and maintenance of the greater oil & gas economy? I believe they’ll only need to reflect back on this period and understand that the disaster that is oil & gas, service and tertiary industries, and what will become of the industry in the next decade is a result, and is wholly attributable to the lack of real profitability at these producer firms of a primary industry. Therefore it is reasonable to suggest that our user community is motivated. But there’s more. Our user community are the only people licensed to make changes to the software and services that are derivative of the Preliminary Specification. They are the principles in the service provider organizations they own and operate which service and support the producer firms with the People, Ideas & Objects software they’ve developed. Therefore, they too will be “eating their own dog food.” 

Innovation is one of our major initiatives and one of the seven Organizational Constructs of the Preliminary Specification. Innovation needs to be constructed within the organization before it’ll be realized. Therefore much of the design and development of People, Ideas & Objects et al is focused on that organization for both the producer and the greater oil & gas industry. Dynamic, innovative, accountable and profitable producers will approach the dichotomy of their profitability vs affordable, abundant and reliable energy which they’ve innovatively provided to the consumer. 

It is here in innovativeness that Oracle presents a previously unrealized and otherwise unavailable benefit of Oracle Cloud ERP. The feature is the quarterly upgrade cycle of Oracle Cloud ERP. A feature in which People, Ideas & Objects have architected the Preliminary Specification and therefore oil & gas producers will fully realize. What we know of innovation is iteration and user involvement go hand in hand to make progress. 

It was in Sources, Procedures & Macroeconomic Effects of Innovation by Professor Giovanni Dosi that we learned.

… the conditions controlling occupational and geographical mobility and or consumer promptness / resistance to change, market conditions, financial facilities and capabilities and the criteria used to allocate funds. Microeconomic trends in the effects on changes in relative prices of inputs and outputs, including public policy. (regulations, tax codes, patent and trademark laws and public procurement.) (p. 1121) 

As Dosi notes, having a firm's financial facilities enhanced provides real value for producers in the 21st century. Iteration on the integrated and aligned business, operations and technical ends of the producer and Joint Operating Committee is where the Operations Management module seeks to bring the disparate elements of the Preliminary Specification together for active management and control. 

This next point ties into our earlier quote from Safra Catz regarding now is the time to be bold. The Operations Management module is a new type of application being envisioned that is a necessity when the Internet of Things (IoT) begins the process of comprehensive automation. What People, Ideas & Objects have traditionally called the ability to monitor and control devices. We now prefer to use Oracle’s classifications of “Pull of Data” and “Push of Instruction.” This is a world of exponential data and complexity, risk and uncertainty with unimaginable rewards and opportunities. As the title states it is a journey not a destination. The journey begins with Operations Management and finishes there with the assistance of People, Ideas & Objects, our user community and their service provider organizations and Oracle established as a permanent ERP software development and integration capacity and capability within the oil & gas and tertiary industries.

The nature of unanticipated and foreseeable catastrophes is documented in the next slide. To the far right is the anticipated frequency of these and the time necessary to prepare for the catastrophic event. I’m unable to categorize the oil & gas industry into any of these situations. A four decade run of destruction, fueled by investor capital sourced through specious means and no action reflects to me that this industry has been built on the basis of catastrophes (boom / bust cycles) where the culture has accepted and accommodated the “hair on fire” situation as normal. Yet when we review a number of producer financial statements. A random sample of 10 or more producers. Can anyone point out the hero and which ones are the zero’s? Over the course of a decade try to determine from these financial statements what the state of the industry was in? Was it boom or bust and did the company win or lose? 

People, Ideas & Objects have painted a radically different vision of how the administrative and accounting processes are managed throughout the North American oil & gas producers. Turning their overhead cost structures from fixed to variable based on profitable production. Enabling producers to shut-in any unprofitable production and therefore reaping a substantial value proposition from our software and service provider organizations. 

The question becomes how is this opportunity realized? Will a strategy of “muddle through” get us there? Or do these need to be undertaken on a purpose built basis? Much as these fourteen modules of the Preliminary Specification establish and enhance Oracle Cloud ERP to deal with data, the processes and the increase in the number and volume of firms in which it interacts with. And builds value in dynamic, innovative, accountable and profitable ways, everywhere and always, for the North American oil & gas producer.

People, Ideas & Objects are pleased to note the broader Oracle community of developers and users in the Oracle Cloud ERP, Oracle Autonomous Database and Java environments. This is a resource pool that we’ll be able to draw upon during our developments, implementations and during operations that will provide further value and performance to the North American oil & gas producers. We would hope to contribute to this community through the challenges that we’re faced with and need to resolve during this process. And the overall task of seeing an industry rebuild itself on the basis of performance and profitability. 

Operations Management Module, Part I

 Operations Management

I am pleased to present the 14th module of our Preliminary Specification. Operations Management should be seen as a new and different type of module in the Preliminary Specification. The other modules enable producers to capture their data, analyze it, report on it, gain insight from them and in turn make the appropriate decisions. The Operations Management module enables producers to actively engage with their producer and Joint Operating Committee organizations. To conduct their operations based on the decisions that it will make, strategies it employs and to deploy their distinct competitive advantages of their land & asset bases and the coordination of the markets earth science & engineering capacities & capabilities. 

The Operations Management module is the crossroads between the two separate and distinct operations and corporate groups that have developed over the past decades in oil & gas. These two groups work at opposite ends of the producer firm where the corporate silo is interested in the SEC, regulatory and tax requirements and have not been fulfilling their role in providing valuable operations information on an overall producer basis or to each of the Joint Operating Committee. The operations and technical environments have been seeking to mitigate the lack of this business knowledge, understanding and information being passed over into operations which in many ways has created the broad industry issues that have manifest themselves. 

In the oil & gas industry that we’re rebuilding through the development of the Preliminary Specification and Cloud Administration & Accounting for Oil & Gas. The need to have the means to conduct end to end planning, implementation and optimization of the exploration and production process needs to be undertaken and implemented. That will be done through the producer and Joint Operating Committee in this Operation Management module. This more than any of the other modules is a producer facing module. The key difference between what may exist today is the Preliminary Specifications version will be populated with actual, factual accounting and administrative data and information. Not the recycle costs or other estimates from reserve reports or elsewhere. We’re replacing what exists today in industry and the producer firms in terms of culture. The replacement of what has been done is necessary in order to rebuild the industry’s culture on the basis of profitability and performance.

Preamble

How does the producer firm focus on innovatively producing profitable oil & gas. The Preliminary Specification relieves them of their non-competitive tasks of administration and accounting. Supported by our user community and their service provider organizations, producers will no longer need to build and maintain their unshared and unshareable capacities and capabilities to meet the requirements of those aspects of their business. The engineering and geology of the producer and running of the business in terms of exploration and development are their domain of expertise that they are able to develop and deploy their distinct competitive advantages of their land & asset base and coordinate the markets earth science & engineering capacities and capabilities. 

North American oil & gas producers are in a state of organizational collapse which is proving to be a catastrophic failure. With internal and field capacities and capabilities that are severely deprecated, producers are incapable of maintaining their activity levels, assets and productive deliverability for the mid to long term. Their capital structures are and have been unsupported for almost a decade. The amplification by the accelerated shale decline curve has placed the North American economy and society in a situation where the status quo is proving incapable of even recognizing their difficulties. Leaving what will become a long term consequence of their inaction to be detrimental to the most powerful economy ever known to man if it's dependent on foreign sources of oil & gas. The opportunity to mitigate this is through the active disintermediation and rebuilding of the industry by way of the development of the Preliminary Specification, our user community, their service provider in People, Ideas & Objects Cloud Administration & Accounting for Oil & Gas software and service.

2023s natural gas price shows the one thing that producers assured us they had under control. Production discipline doesn’t and has never existed under their current culture of “muddle through.” To them, producing unprofitable production is considered a right and a privilege. To identify unprofitable properties is impossible for producers to determine. Their ERP systems are not structured to capture their data at the property level, mostly overhead and depletion. And the costs of capital are intended to build balance sheets, not to pass these costs onto consumers. The issue that People, Ideas & Objects Preliminary Specification is designed to resolve, of chronic, systemic overproduction of oil & gas since at least July 1986. Continues even when natural gas has become a political weapon of war and shale decline curves have begun to appear in individual producers.

People, Ideas & Objects propose the vision of the Preliminary Specification and its 14 modules built upon Oracle Cloud ERP. Designed, developed, supported and serviced for the long term through our user community and their service provider organizations. A rebuilt industry that provides for the most profitable means of oil & gas operations everywhere and always. Profitable operations are the only source and means of capital that is large enough to satisfy the demands of what oil & gas will require throughout the greater oil & gas economy up to the year 2050. What we know and understand of the current administration's is that when they’re pressed they never listen or act, they’ll say anything to satisfy the present concern, do absolutely nothing, eventually regressing back to their cultural norm. Which is consistent with and part of their dedicated strategy of “muddle through.” 

Review of this Operations Management module will leave most people thinking that the scope and scale of the application is well beyond the scope of what’s possible or practical. I would certainly understand that commentary and ask to view this in a different perspective. It is the 21st century and we are building the applications for the next generation on to the future. I see the Operations Management Module using the base of the Preliminary Specification and leveraging it in ways that are the basis of the type of innovation that Oracle, People, Ideas & Objects, our user community and their service providers will be able conduct with producers and Joint Operating Committees in the future. We are leveraging this opportunity to integrate a monitoring and control system for the producers to manage their Joint Operating Committees as the dynamic, innovative, accountable and profitable properties and producers they’ll need to be. 

The perspective that I see in these types of applications delivery, such as our Operations Management module provides to the producers. Will no longer contain a box of diskettes, digitized manuals available on the world wide web and supported through a help desk Monday’s to Friday’s from 8 - 5. It’s not the early 1990s, is not of any value today and is one of the reasons that we’ve focused on our user community as our key competitive advantage and their service provider organizations. They’ll need to be available 7/24 supporting the Preliminary Specification, ensuring they’re operational and troubleshooting issues prior to any producer calling or having discovered the issue. Capable of resolving the difficulties that may occur in the operational, technical, administrative or accounting domains of the industry. 

People, Ideas & Objects find the producers current expectations of our competitors to be quite surreal. Paying for nothing, expecting miracles, casting aspersions when expectations in their Service Level Agreement, are not achieved and with zero producer participation beyond execution of the SLA. My expectations of our user community are for it to undertake the leadership of the business models development of the industry and the value proposition that the Cloud Administration & Accounting for Oil & Gas software and service is designed to provide. Where our user community is making proactive changes to lead the industry through its issues and opportunities to ensure they’re providing the North American dynamic, innovative, accountable and profitable oil & gas producers with the most profitable means of oil & gas operations. This role has been capitulated by producers through their culturally systemic “muddle through” strategy and must be undertaken.

We see this as the future of enterprise software. The dynamic nature of business can’t be managed through a generic configuration that was conceived decades ago and has not been amended. The demands of software to manage the enterprise on its own is foolhardy and an outright dangerous assumption. Nothing of complexity, substance or significance works in that way. People, Ideas & Objects is a comprehensive software and service offering that is a permanent capacity and capability of the North American producers. This is the level at which the software industry has come about and needs to be, it is the promise that it has always had. The untenable assumption from officers and directors was that it would be available by flipping a switch. Conversely this does not imply that producers will continue to define the terms of what it is they expect in a Service Level Agreement, then sit back and criticize any deficiencies. Softwares influence in business is too significant to settle for these old failed processes. It’s no longer enough to just own the oil & gas asset, it’s also necessary to have access to the ERP software and services of People, Ideas & Objects et al’s Cloud Administration & Accounting for Oil & Gas, which makes the oil & gas assets profitable. This must be an all hands on deck commitment by all for success to be achieved. That is Oracle Cloud ERP, People, Ideas & Objects, our user community, and their service provider organizations development, implementation, service and support of the Preliminary Specification. Dynamic, innovative, accountable and profitable producers and the service industry will all need to be actively participating.

With the Preliminary Specification we are seeking a transformation in the profitability, performance and culture of the producer organization and Joint Operating Committees as we’ve detailed throughout. These will need to undergo a transformation that is far more radical than what the status quo culture is capable of comprehending. How this transformation will happen will be through their efforts in this Operations Management module to reduce their process and activity timelines, increase their performance criteria and expectations consistently throughout the remainder of this century. Tighten up the interactions between the tier 2 and 3 sub-industries to optimize the producers and Joint Operating Committees production and exploration processes. An industry wide rebuilding process that will need to be and can only be conducted and funded through the profitability earned from oil & gas production. Where producers will be able to compete effectively in the North American capital markets and maintain affordable, reliable, abundant and secure domestic sources of oil & gas for consumers. 

People, Ideas & Objects

We are Enterprise Resource Planning software developers for oil & gas. Our competitive advantages consist of our user community, Intellectual Property and research. Delivered through our Cloud Administration & Accounting for Oil & Gas software and services. It’s no longer adequate to just own the oil & gas asset, it’s also necessary to have access to the ERP software and services of People, Ideas & Objects et al’s Cloud Administration & Accounting for Oil & Gas that makes the oil & gas asset profitable. 

Our user community

People, Ideas & Objects user community is our priority and focus. We have established our user community with a comprehensive user community vision that ensures that they’re able to make the changes that provide for the most profitable means of oil & gas operations, everywhere and always. Three significant attributes of their structure provide them with the means in which they can do so. 

• Only user community members are licensed to make changes and prepare derivative works to the underlying Intellectual Property of the Preliminary Specification. 
• Our developers are licensed to take their instruction and input from only user community members. They are deaf, dumb and blind to all others. Producers are able to therefore have their issues and opportunities discussed directly with the user community members. 
• Our user community has control of their own budget.

The method and means of communication that the producers, Joint Operating Committees and service industry representatives will use to engage our user community will be through this Operations Management module. This communication and collaboration portal will simply be a representation of a stand alone, dedicated, collaborative module that is established throughout the Preliminary Specification for enhanced and focused communications.

Service provider

Each user community member is licensed to establish one or participate in the ownership and operation of many service provider organizations. The service providers enable the change that People, Ideas & Objects et al are able to make to the oil & gas producers cost structure. Moving from a fixed overhead producer based accounting and administrative capacity and capability to the variable overhead industry based accounting and administrative capacity and capability. Variable based on profitable production. Service providers are the unique organizations owned and operated by the user community members that manage an individual process operation within the Preliminary Specification. Applying their services and competitive advantages in the form of quality, specialization and the division of labor, automation, innovation, leadership, integration, deployment of their tacit knowledge, issue identification and resolution, creativity, research, ideas, design, planing, thinking, financing, observing, judgment, reasoning, conflict and contradictions, collaboration and compromising.

Using these unique skills and their understanding of the industry to apply their process across the industry data set. Populated through a reallocation of the producers current accounting and administrative resources these people will be the ones that deliver the software and services of the Cloud Administration & Accounting for Oil & Gas to North American based producers and those they interact and transact with. 

As with our user community the service providers staff will use the Operations Management module as a portal for communication between themselves and the larger oil & gas community. Collaborating on issues and opportunities of concern and information that is pertinent to the various stakeholders identified in this module. Communications for the purposes of enhanced developments of the software and services, integration, issues and opportunities.

Oracle Cloud ERP Demo Series

 What has been difficult to express in the Preliminary Specification is the robust platform which it is built upon. Oracle Cloud ERP is the premier tier 1 ERP solution in the marketplace. Which is easy to state and difficult to understand if you’ve never seen it in action. The nature of their product, the maturity of their technology and that easy to use Redwood interface has to be seen to understand that it’s People, Ideas & Objects et al purpose to stand on the shoulders of absolute giants in terms of Oracle Cloud ERP and their underlying Oracle technologies. This referenced url will take you to Oracle’s Best Practice Demo Series where you can select a number of different videos to view and gain a bit of understanding of the quality, fit and feel of Oracle Cloud ERP. I can not recommend highly enough that everyone should view the “Simplify Your Month-End Close by Automating Joint Venture Management” to learn the details of how comprehensive and high quality Oracle’s Joint Venture Management product is. It is by far the most comprehensive and the best Joint Venture Management system that is available in the marketplace today. And I am not aware of any North American producer using it. Of the Demo Series the top three videos that I think are the most pertinent to express the relevance of this mature product and its robust feature set are.

• Simplify your month-end close by automating joint venture management. 
• Increase project success through employee engagement and flawless execution.
• Boost efficiency and reduce risk with an integrated procurement solution. 

The Preliminary Specification has defined seven distinct Organizational Constructs. The key Organizational Construct is the Joint Operating Committee which is the organizational structure that exists to deal with Joint Ventures. When we move the culture away from the corporate model, as we’ve described today’s methods of oil & gas management, to the Joint Operating Committee everything within the producer, the industry and all the secondary industries changes. Nothing in oil & gas remains consistent with the way management operates the industry today. We are aligning the corporate culture directly to the operational and technical cultures of how the industry operates and are oriented to. The oil & gas culture which has developed over the past 100 years. A culture that is derivative of the partnerships that are represented in oil & gas operations everywhere. 

It is our hypothesis that in the 1960s when computers were introduced accounting became one of its uses. Soon after the tax, royalty and regulatory environments were added and soon the predecessors to the ERP systems only recognized the corporate organization and nothing to do with the business of the oil & gas business. A separation between the business vs the technical and operational areas grew and became a source of conflict that precipitated a lack of communications and two separate and independent groups competing for control. And that conflict is what we have eliminated in the Preliminary Specification by aligning the business to the operations and technical culture.

We are using Oracle’s recommended architectural method of “additions” to the base of all of the Oracle products that we will use in our software developments. This way none of the code between their efforts and ours will cause any difficulties to be released into commercial software if there are changes in either environment. It is the full use and value of the object oriented programming model. At the same time I can state unequivocally that both Oracle and People, Ideas & Objects are relational database developers first and foremost. 

Recently Oracle implemented a quarterly update feature where incremental changes and upgrades are scheduled for release each quarter. People, Ideas & Objects will be participating in this quarterly release schedule and have noted the added benefit realized by the producer firms as a result of our Organizational Construct titled “New Growth Theory.” That we are sharing the “non-rival” costs of the infrastructure of accounting and administration across the North American producer population through our user community and their service provider organizations. Therefore the need for each producer CFO and others to be heavily involved in the changes each quarter can be reduced to a less onerous task when the industry can plan and implement the upgrades on a shared or non-rival basis through our user community and its service providers. Innovation is incrementally increased through iterative developments. They are not big bang changes unless the organization is challenged by existential threats to their organization, such as the oil & gas producer organizations are today, or through disintermediation, which is also present.

We are not rebuilding from scratch an ERP system to bring about the Preliminary Specification. We are defining and catering specific oil & gas related software developments that are necessary to deal with the issues and opportunities in oil & gas today and the future. Undertaking a full ERP system from scratch would be untenable. Doing so by configuring and augmenting Oracle Cloud ERP which is the only appropriate approach today. Reorganizing the oil & gas industry to align with the Preliminary Specification to function on a performant and profitable basis. And implementing our software and the services of our user community members which are necessary to rebuild the infrastructure and organizational structure necessary for oil & gas, its secondary and tertiary industries to provide for the most profitable means of oil & gas operations, everywhere and always. 

Within this Oracle Demo Series of videos we find examples of their systems in the generic Oracle Cloud ERP. Configured with test data that express the methods in which the application functionality and process management undertake the specific industry and generic business processes. In the recommended video of their Joint Venture Management section of Oracle Cloud ERP is the screen below. There we can see the basis of the Oracle Cloud ERP Redwood interface and the quality of their Joint Venture Management software ably demonstrated.

Additional screens are provided to understand the Joint Venture Management process and how that accurately maps into the needs of oil & gas producers throughout North America. The need to accelerate these features, functions and processes to accommodate the unique needs of the Preliminary Specification in oil & gas is exactly what Oracle Cloud ERP has been developed for. The use of additions to add our needs, features and process management within these well established, commercial, tier 1 ERP systems are enabled through the dynamic nature of both the Oracle Autonomous Database and the Java Programming Language. As has been stated earlier in this post, Oracle Cloud ERP is the highest rated ERP vendor according to the Gartner Group. 

These next two screenshots reflect the dynamic nature of the redwood interface. How the user is presented with the various different categories of capabilities that they’re authorized to access and the processes they manage. Where each user is presented with screens that reflect only their domain of authority and responsibility.

The purpose of this post is of course to dispel the concern that we’re rewriting everything from scratch. Nothing could be further from the truth. It is difficult for me at times to classify the role that People, Ideas & Objects et al are undertaking as software developments or implementations. Our role is heavily influenced by both in highly iterative, incremental and innovative ways. And as a permanent industry based capacity and capability. Providing the North American based producers with the most dynamic, innovative, accountable and profitable oil & gas producers with the most profitable means of oil & gas operations everywhere and always. 

Reinstating Profitable Production Rights, Part IV

 Promotion of Profitable Production Rights

People, Ideas & Objects have now reintroduced the concept of the Profitable Production Rights method of raising the revenues necessary to develop the Preliminary Specification and establishing and funding our user community. What I expect in the next few months is to occasionally return to this topic and include new attributes as they arise to more fully develop the conceptual model. There will be many Tweets on Twitter @piobiz to further expand what it is that we’re doing and to seek a group of like minded individuals. 

What we do know and what we’re fully aware of is that producer officers and directors have proven once again that they’ll do nothing. We have two choices as a result. We either quickly learn what the producer officers and directors' plans, direction, wisdom and brilliance consists of. Or we make the changes ourselves through the development of these Profitable Production Rights. 

We’ve never experienced an oil & gas industry that has lost its capacities and capabilities to such an extent that it is functionally incapable of maintaining its production profile. And we certainly have never seen or experienced the full scope and scale of a potential industry wide decline curve when we’re so dependent on shale based deliveries. The loss of the capacities and capabilities is the first issue that we’ll need an all hands on deck style of issue resolution. “Muddle through” complacency has superseded and circumvented any and all motivation throughout the industry for the call to action. Aggravating a severe difficulty that needs a sense of urgency and concern on everyone's behalf. As difficult to resolve as I see this issue, I find the exposure levels to shale based production volumes create an exponentially greater aggravating issue. The steep decline curve that is an inherent characteristic of shale. We’ve never been here before and we’ve never been so exposed. 

Those that are responsible for this situation are the ones that choose to do nothing about it. They are the ones who have caused it, have the fiduciary responsibility, authority, accountability and resources to deal with it specifically and prefer to “muddle through.” Supported by the cash flows of a capital intensive industry to compensate for their hefty executive compensation, they fail to see the problem. 

Conclusion

To suggest that the status quo producers have lost the focus of the purpose of what it is they’re doing, I believe, has been made. We can suggest that they’ve failed, will not be successful, have proven they’re culturally incapable of earning real profitability, have no desire to change or to be successful. The level of difficulty being experienced in the industry will become more evident to people as time passes. And what we know is the choice of alternative organizational opportunities for the greater oil & gas economy is limited to include the one choice being offered by Oracle, People, Ideas & Objects, our user community and their service provider organizations in the form of our Cloud Administration & Accounting for Oil & Gas. Any time necessary to consider the issues has passed and the Intellectual Property that is available to develop alternatives will need to consider what has been developed and therefore avoid the Preliminary Specification. 

The value proposition that People, Ideas & Objects provides is extensive due to the level of damage and destruction that has been authored by producer officers and directors throughout the greater oil & gas economy. Disintermediation is also playing a significant role in the development of our new business models that bring about new value. And we have detailed in our seven Organizational Constructs the cultural methods that we are implementing in the application to gain these advantages. These are the cultural basis that we’re rebuilding the new oil & gas industry upon. Why our value proposition is so substantial. What forms the strong negotiating position which is acquired by each of the Profitable Production Rights Licensees. 

Our budget has been one of the issues that have given the producers officers and directors the ability to maintain their distance from this development. The scope and scale of their issues and this project are large and demand these costs be recognized. These costs make up one third of the total of our budget with the other third going to myself for Intellectual Property royalties and another third going to People, Ideas & Objects organizational Profits. I’ve now leveraged my assets in the acquisition of the Flexible Profitable Production Rights Licenses. A realization needs to be made that this next phase of our development will not be built on the success of one individual and the comprehensive sense of urgency necessary to resolve these industry issues. 

To conclude, to have a Profitable Production Right acquired for no more than $390 per North American boe and the potential revenues and characteristics of that Right reflecting a negotiable share of that boe’s value proposition. Provides for direct participation in oil & gas without the inherent risk associated with the financial, operational and political frameworks. Direct participation is also realized in the software business of oil & gas ERP systems. The Profitable Production Right proceeds are incurred in the process of building the Preliminary Specification. Fulfilling the need for People, Ideas & Objects revenues be sourced from oil & gas production, albeit indirectly in this case. Upon operation of the software and services the Profitable Production Right will reflect the intrinsic value of the oil & gas productions ability to organize profitably through the Cloud Administration & Accounting for Oil & Gas software and services. A perpetual Right that is transferable from property to property and therefore exists beyond the life of any of today’s existing producers oil & gas capacity and their associated business risk. Although our costs are large they pale in comparison to the significance of the damage done by these officers and directors, which is accelerating in today’s natural gas price collapse, has not been identified or approached and continues. Therefore anyone and everyone can share in the effort, the success and the reward of resolving this industry catastrophe that has the potential to become a societal catastrophe and therefore be rewarded in the long term.

The Battle

What we know is that there have been many billions of barrels of oil and trillions of cubic feet of gas that have passed through the North American industry over the past four decades and more. We’re told that it’s represented in the balance sheets and was put in the ground by the producers officers and directors. For what purpose has not been explained and maybe there was a productive reason that is beyond our current comprehension. We should keep an open mind to these things. The fact is no one is claiming to have prospered from their involvement in oil & gas and it stands at a point that appears to People, Ideas & Objects where it is placing us in serious jeopardy. 

The leadership has been well compensated during this era. They appear blinded by this and are unable to see objectively past their “muddle through” strategy. Their recent saunter off the stage to clean energy with oil & gas revenues in tow may now be realized to be a step too far and they’re therefore reclaiming to be born again shale producers. The point proves one thing: the money in the form of those oil & gas revenues are on the table and they are going to be directed towards the appropriate managers. I suspect in the first half of 2023 we’ll see some action on the direction of where the industry will be heading. And most certainly away from those that thought they could portray this behavior as normal.

It may soon be realized that coincidental with the officers and directors return and focus back onto oil & gas has brought about their past bad behaviors and failing characteristics. Is this the reason that natural gas prices have collapsed once again? The return of those in “command” and therefore creating the obvious crises that demands they remain in charge? 

The Profitable Production Rights are the means in which the industry can transition to a culture of performance. Based on the Preliminary Specification, our user community and their service provider organizations which are driven by the most profitable means of oil & gas operations, everywhere and always. Where the seven Organizational Constructs define a new culture that is comprehensive, intuitive, appropriate and understandable. One in which those who are concerned with the situation and are looking to actively participate and to prosper in the rebuilding of the dynamic, innovative, accountable and profitable oil & gas producers, industry and sub-industries will be able to. 

Over the next few weeks and months we'll occasionally discuss this topic and determine its viability. I will be reviewing the situation to determine if it is possible and to ascertain what an interim budget will need to be in order to organize and develop these rights if we proceed. 

Reinstating Profitable Production Rights, Part III

 Issues Involved with Profitable Production Rights Licenses

An Inconsistent Software Architecture to What’s "Approved"

People, Ideas & Objects are licensed as the commercial rights holders to the Intellectual Property that I’ve developed. It is the issue of Intellectual Property that is highest on the agenda for the status quo producer’s officers and directors. They’ve never accepted or recognized IP anywhere in the industry before and are hesitant to set a precedent that is counter to the manner in which they’ve operated. The issue of Intellectual Property is the means in which the software reflected in the Cloud Administration & Accounting for Oil & Gas will be secured in terms of its value proposition and therefore its inherent asset value. And therefore how our value proposition is generated and as a consequence it’s the means that we have to generate revenue through the development of these Profitable Production Rights License products and their inherent value. 

Our software architecture therefore falls under the category of a primary concern to the Profitable Production Rights Licensee in terms of securing the leverage for their value proposition which is wholly derivative of People, Ideas & Objects and its licensed Intellectual Property. The Preliminary Specifications seven Organizational Constructs includes Intellectual Property as one of the seven constructs. Please review that section in order to gain an understanding of the importance of IP in this community and the larger oil & gas industry.

What the status quo officers and directors of the producers are willing to accept and what is generally understood in the greater commercial marketplace in terms of software architecture is the following. That commercial ERP software applications as configured today. Should be provided to the marketplace through a number of published Application Programming Interfaces or API’s. The preference would be given to using open source software for its large community and free cost. Then the greater software development environment would have the opportunity to augment the software that is accessible through these API’s in new and innovative ways. Which sounds like an enhanced method in which to deliver software. And in an altruistic world that may be the case. What we need to do is understand the purpose behind the status quo’s desire and motivation to want to pursue this architecture. And compare that to what it is that People, Ideas & Objects are doing with our private API’s of proprietary software accessible only within our licensed domain. 

By publishing an API for use as the status quo desires, People, Ideas & Objects in my opinion would be violating the terms and conditions of all of their licensees provisions. In summary our license grants them the rights to uphold, secure and prepare derivative works. By publishing an API we would allow the producer firms to access the software code without having to pay for it, or to be more specific, never pay for the underlying Intellectual Property and therefore render our value proposition moot. This is due to the fact that on May 6, 2021, the United States Supreme Court issued judgment for Google against Oracle in their litigation regarding Google’s unauthorized use of the Java Programming Language. Citing that use of a published API was “fair use” and not a violation of Oracle’s copyright. 

Producers would however gladly pay for any and all of the “blind sleepwalking agents of whomever will feed them” to conduct software developments for them. We therefore can clearly see the motivation and argument of both sides of this finer point of the law. The status quo and People, Ideas & Objects are seeking to commercially secure what is rightfully People, Ideas & Objects value that is represented in the Intellectual Property developed in the Preliminary Specification and elsewhere. People, Ideas & Objects use that value to orchestrate productive change in the industry and to disintermediate the status quo. The motivation of the status quo is to stop that process and therefore manage the software development process in order to maintain their franchise for another generation. They will compensate those involved for their time incurred, however that is keeping a critical aspect of the industries future in the hands of “blind sleepwalking agents of whomever will feed them” doing only what is instructed of them by the producers officers and directors. We’ve chosen a different direction in terms of the health and prosperity of the oil & gas industry. 

What potential Profitable Production Rights Licensees may take from this is that the makeup of my holdings are somewhat evenly distributed between Intellectual Property royalties, earnings from the revenues they generate and the fees I charge the producers for selling access to the Cloud Administration & Accounting for Oil & Gas software and service in the form of the Flexible Profitable Production Rights Licenses. I’m all in. 

Vaporware

Yes definitely, and we’re actually quite proud of it. We’ve not had to commit to anything that is set in stone and therefore needs to be amended through extensive budgetary expenditure. We’ve maintained a flexibility and financial independence that maintains our ability to focus on the issues. People, Ideas & Objects are the financially unsupported, ostracized and vilified oil & gas ERP provider that has taken all the flak the status quo officers and directors could muster. And we gave as good as we got. We’re still standing and can claim to be the only solution to the industry's existential, organizational issues. 

We are vaporware in the purest form however. Outside of the Preliminary Specification there is little other than our efforts and our results in terms of developing our user community. A process we began in the first quarter of 2014 and a process that demands significant time to organize. Potential user community members have had the 2012 publication of the Preliminary Specification to review and understand the larger vision of how oil & gas will operate. As has the larger oil & gas community. And to spend time in their chosen area of expertise to enhance and expand on the concepts there, determine what it is that they can do to enhance the industry. During the first quarter of 2014, the publication of our user community vision, potential members were also able to see how they’re able to affect the necessary changes in oil & gas. Having the tools of the exclusive license to prepare derivative works to the Intellectual Property, having the exclusive access to the People, Ideas & Objects software developers and budgetary control.

We keep the results of our user community confidential and away from the destructive and envious officers and directors of the producer firms to ensure these people remain safe in their current prosperous oil & gas positions. Working quietly and insidiously on both the future and the past.

Scope and Scale

The ominous nature of the Preliminary Specification has not been attempted in an ERP environment before. This is not a result of our ambition as much as the scale of the issue and the obstinate resolve over several decades by the producers’ officers and directors. Oil & gas is a critical part of how we’re able to enjoy our advanced standard of living in North America. Has that been put in jeopardy? It’s difficult to say at this point, however the prospect of what producer officers and directors will be able to resolve dynamically, innovatively, in an accountable manner and profitably is not probable based on their culture represented in “muddle along.” 

It is interesting to see that Oracle is undertaking a similar scope and scale in the U.S. healthcare system. Moving their proposed system from the current systems facility focus to one in which the patient is the primary focus. It is far more comprehensive in scope and scale than what we are attempting, in my opinion. Deals with even greater issues in the form of individual healthcare. And the U.S. current healthcare systems are nothing but isolated systems operating at each individual facility. Where patients are unable to aggregate their medical history from the disparate silos of independent healthcare providers.

Are People, Ideas & Objects and Oracle’s Healthcare initiatives just a fad in terms of what ERP systems may experiment with? Or are they the necessary response to the demand for systems and organizations to move to a higher level of capacity, capability and organizational performance in order for society to move forward? These questions will be answered from the success or failure of these initiatives. Unfortunately for oil & gas the time, lack of alternatives to the Preliminary Specification and sense of urgency demand that People, Ideas & Objects et al are successful. And this will only be resolved when we are all focused on rebuilding the industry on that basis. Where everyone involved in the industry has a part in making that success possible.

Assumes Oil & Gas Disintermediation is Necessary

To every industry, disintermediation is a necessity for the participants' survival. The ability of the structured hierarchy to survive and prosper in the future is beyond question as it is now functionally unable to perform at the level that society demands. New forms of organization centered around the Internet offer innovative means in which to apply principles of value generation that the status quo is incapable of ever being competitive with. 

We can argue these points as to whether the oil & gas industry needs to be disintermediated. People, Ideas & Objects also assume that the current structure has failed comprehensively. This is not widely evident or shared, however concern is building that the response to any and all business issues is summarily ignored or “muddled through.” 

Another constant that appears in the disintermediation process is the battle between those who seek to protect their status quo turf and those who seek to change. In North America, oil & gas producers' resistance is persistent to the point that their poor performance has damaged all aspects of the industry and associated sub-industries. 

Taking the optimists side of the argument. People, Ideas & Objects consider this an opportunity not only from the disintermediation of the industry. The extent and comprehensive nature of the damage and destruction demands that significant remedial actions be taken to rebuild the service industries capacities and capabilities. To rebuild the producers internal capacities and capabilities in terms of their work-in-progress of the exploration and production process. To rebuild the trust, faith and integrity of the producers that will attract the investment community back to the industry. To ensure the industry and producers are provided with the most profitable means of oil & gas operations everywhere and always, and the consumer is offered an affordable, abundant and reliable source of energy. Therefore why would you rebuild the industry in the current failed method and not use the tools and methods that are available today that are proven to be successful?

Value Proposition

The premise of our extensive value proposition. Which is the value that both classes of Profitable Production Rights Licenses are leveraging. Is that the producer firms were never profitable and were never commercial due to their dependence on and destruction of outside capital for the past four decades. We have established that overreported assets lead to overreported profitability. Taking that as a given there is an insidious cancer that eats away at an industry over the long term when this issue has been evident. “Real” performance is never in question and therefore performance does not become a criteria of evaluation as “it is so easy to attain.” Therefore the performance of the organization begins to degrade to such a level that it is wholly dependent on outside capital for basic operations. Oil & gas’ culture has become the persistence that isn’t changing. And the industry is worthless as its present value is negative and demands capital for basic functioning due to the chronic lack of performance becoming a permanent, unchanging culture.

Unfortunately it is terminal. The culture is useless in a market economy and needs to be trashed in order to elevate performance to become the criteria in which it operates. There is not enough energy in the world that could fight this culture and overcome it in head to head battle. Thankfully for People, Ideas & Objects the oil & gas industry is self-selecting and we are prepared to rebuild it with the performance based culture of the Preliminary Specification. To ensure that the producers are provided with the most profitable means of oil & gas operations, everywhere and always. 

It is the differential between these two industry visions that are the value proposition that makes up what is being leveraged by the Profitable Production Rights Licenses. What we have stated consistently as a $25 - $45 trillion value over the course of the next 25 years. Composed of incremental profitability of $5 trillion. And the $20 to $40 trillion that the producers claim is necessary in terms of capital to rebuild, refurbish, reclamation and expand the productive capacity and infrastructure of the industry. An amount that is not necessary in the Preliminary Specification as the capital costs are recognized on a competitive basis to all other industries in North America. Cash that is generated internally, reinvesting that cash, only to recover it again and again to invest it again and again on a competitive basis to what other industries in North America are able to achieve. Where a capital intensive industry such as oil & gas is understood to have predominantly capital as its costs that are passed on to the consumers. Therefore instead of officers and directors strutting down main street talking about “building balance sheets'' and “putting cash in the ground” the Preliminary Specification “puts cash to work.”

Budget

Few would argue that People, Ideas & Objects cost structure would fall within the domain of $5 billion U.S. What is particularly troublesome for the status quo is to accept an equal amount of Intellectual Property royalties. And there are profits of an equal amount again. I’ve stated repeatedly that these last two categories are merely the appropriate allocation of what are considered reasonable software development margins. Margins of what are generally accepted and earned in the software industry today. If left to the producers officers and directors we would be working for the retirement of our cost plus $5 for our efforts. We may get a thank you but that would be questionable and unreasonable as far as they were concerned. 

In consideration of the value proposition of the Preliminary Specification as identified. The costs of this initiative are incidental to the value generated. This is the justification that People, Ideas & Objects use to support our budget and the further detail regarding our justification is contained in our Organizational Constructs section. Where we describe how each of the seven Organizational Constructs incorporated in the Preliminary Specification generate value for producers and industry. We of course welcome the opportunity to compare the prospective value generated from the Preliminary Specification to the plans and specifications of the officers and directors. We haven’t had any calls for this and are unable to comprehend if there is a plan.

Reinstating Profitable Production Rights, Part II

What do the Flexible and Profitable Production Rights Licenses earn?

High levels of creative destruction in what will be the most violent form are anticipated to occur in the coming years. What revenues are generated as a result of the ownership of a Profitable Production Right License would be determined based on the negotiated share of the present value of the differential comparing People, Ideas & Objects et al’s value proposition to the status quo. What that would be and how that would be determined would be a result of these negotiations between the Profitable Production Right Licensee and the producer firm. These contracts would then be managed on the licensees behalf in the Oracle Blockchain database managing each of the specific boe’s. 

If we assume that the Profitable Production Right Licensees implemented a percentage of the oil & gas commodity price as the value in their contract. And for the purposes here we’ll assume a range of rates between 2.5% to 5% of the commodity price. A range that consists of one quarter to one half of the “real” profitability of a commercial operation. An amount where the use of the Preliminary Specification ensures commodity prices are at least marginal, and therefore higher to attain the profitable operation. A differential that has been of no interest to current producers who have left far more than that on the table for many decades. An amount that future producers would consider a cost of business. That contract would earn, if these commodity prices were capable of providing the producer a 10% profit from these prices. At an $80 price of oil, revenues of $2.00 - $4.00 per day or $730.00 to $1,460.00 per year. For natural gas it would be at a commodity price of $7 and therefore revenues of $1.05 to $2.10 per day or $383.25 or $766.50 per year / boe. The key to this argument is that these will be the costs that producers will incur to maintain their access to our Cloud Administration & Accounting for Oil & Gas software and services that provides them the most profitable means of oil & gas operations everywhere and always.

The anticipated, expected or budget price of a Profitable Production Right License has been calculated to be $390 per boe, based on the current North American production profile which includes heavy oil production and People, Ideas & Objects budget. As we’ve discussed, heavy oil producers have their own ERP systems and may not be interested in the Preliminary Specification. However they are direct, net benefactors of the price maker strategy and therefore their production is being assessed on the same basis as all other North American production. They are incapable of shutting down their production process, whose costs are consistently higher and therefore will need to secure Profitable Production Rights Licenses.

The cost of maintaining the software development and user community on a long term basis would need to be factored in when the Preliminary Specification became operational and it would not be material in my opinion. If we consider the $15 billion development costs of the Preliminary Specification in comparison to the gross revenues of the producers in 2021, our total software development and our user community costs averaged over three years would total 0.4% of a single year's oil & gas revenues. And post commercial release operational and incremental software development and our user community costs on an annual basis will be much smaller. A reasonable estimate of 25% of the build costs or $1.25 billion / yr. 

Assigning these overhead costs to the Profitable Production Rights License owners, would be an all in cost in the range of $33 to $70 / year / license. For clarity I’ll state that our user communities service providers revenues are generated through their direct billings to the various Joint Operating Committees. These costs make up the Joint Operating Committee and producers variable overhead costs and are not a cost that are part of the Profitable Production Right License. The Profitable Production Rights Licenses will have no impact on the service provider's fee structure or billing. They will have an indirect impact on the producer's ability to access the service providers through a producer's access rights to the software.

The basis of the long term support costs associated with owning a Profitable Production Right License is the support of the software development and our user community which are permanent industry based capacities and capabilities. There will be times when the Profitable Production Right’s Licensees associated production may have been shut-in, suspended or may even be abandoned. [Note, that does not imply that there would be no overhead costs being charged to the Profitable Production Rights Licensees for the software development and user community costs during these times. These overhead costs are fixed.] The important aspect of the Profitable Production Right License is that it is a contract with a producer to provide them with access to the organizational capability to earn profitable production. It is the right to produce a barrel of oil equivalent and process it through the Cloud Administration & Accounting for Oil & Gas. And is therefore reconfigurable in terms of the production it represents. Profitable Production Rights Licensees won’t have the risks associated with the ownership of oil & gas properties. Each Profitable Production Right License will have the exclusive right to process a barrel of oil equivalent profitably through our Cloud Administration & Accounting for Oil & Gas software and service. Granting the producer firm access to earn a profit on a single barrel of oil equivalent. That Profitable Production Right License is transferable at the Licensees discretion, the ownership that you gain by purchasing the Profitable Production Right is assignable, licenseable, leasable and transferable for the period of time as long as People, Ideas & Objects Preliminary Specification remains commercial. Additionally there is no implied role of a Profitable Production Right License holder to be involved whatsoever in the day to day activities of the producer or Joint Operating Committee. The product is a license of the right of access to Cloud Administration & Accounting for Oil & Gas. The producers alternative would be to continue to use the current approach that is systematically tearing the industry apart. 

Today’s producers' tactical management approach has included everything that comes into their minds. In the past few years we’ve seen $25 million in executive bonuses paid by Chesapeake the week prior to its declaration of bankruptcy. It appears that bankruptcy is the means to deal with shareholders who have become too dissatisfied with the performance of management and how producers are able to reshuffle the deck as it were. Profitable Production Rights Licenses circumvent these actions by having a clause that terminates the Profitable Production Rights License upon bankruptcy. Therefore freeing up the rights and maintaining the value in the hands of the rights owner. Further endorsing the purpose of the Profitable Production Right by enforcing the separation of ownership of the oil & gas production and the right to process that production through the organizations as represented in the Cloud Administration & Accounting for Oil & Gas. The Licensees would then be able to engage the bankruptcy trustees to reinstate the Profitable Production Rights License on terms that maintain the independent ownership of the Profitable Production Rights License as separate and distinct from the means of production. 

Why and who would be interested in purchasing these Profitable Production Rights Licenses.

The purpose in developing People, Ideas & Objects et al Cloud Administration & Accounting for Oil & Gas software and service is to generate the necessary producer profitability to deal with the demands for capital over the next 25 years. There is no other source of financing large enough to fuel these needs as the producers officers and directors past methods have failed catastrophically. Investors have stated unequivocally that they’ve had enough of these past methods and are refusing to participate further. Continued obstinance by the producers' officers and directors appears to be counterproductive with the pace and trajectory of decline only accelerating. Oil & gas in North America does not have a future in its current configuration. Change is necessary to deal with the issues and opportunities present in the marketplace. Opportunities such as disintermediation through Information Technology and the other Organizational Constructs of our Preliminary Specification. Enhancing the culture of the industry through the wholesale change that disintermediation provides. To ensure that producers achieve the most profitable means of oil & gas operations, everywhere and always.

The following are a number of different classifications of people that we believe would be interested in participating in purchasing a Profitable Production Rights License. To provide the software development revenues to People, Ideas & Objects and initiate the rebuilding process that oil & gas and all the subsidiary industries need to undertake. 

Current, past and prospective oil & gas investors

Investors want profits and have not been rewarded for their efforts since 1986. They have experienced the same obstinate, protracted battle with the producer officers and directors that People, Ideas & Objects have experienced. Their participation in the Profitable Production Rights License would provide for People, Ideas & Objects revenues to change their current and prospective holdings into dynamic, innovative, accountable and profitable oil & gas producers.

Our plan for the next few months involves investors getting involved in purchasing Profitable Production Rights Licenses in order to ensure their representative production is handled. To secure their ability to have their representative production processed through the Cloud Administration & Accounting for Oil & Gas software and service. 

Current, past and prospective oil & gas bankers

As above.  

North American based producers.

They’ll need to secure their production rights through direct purchase of a Profitable Production Rights License or engage a licensee to lease the incremental barrels they need to process their production volumes when the Cloud Administration & Accounting for Oil & Gas facility is operational.

“Muddle through” has a consistency over time and throughout the producer population. We have argued it has become the culture of the industry. In this transition to a performance based culture maybe this will be the start of a producer's competitive juices flowing.

Oil & gas producers based throughout the world.

A way to profit from North American production without the operational, financial or political risk. Both through direct ownership of the Profitable Production Right and indirectly through the most profitable means of oil & gas operations from consistent, marginal, global commodity prices. 

Current oil & gas employees and vendors

Everyone identifies with the personal risks of being involved in disintermediating an industry. It brings out the possibility they’re attacked and subject to severe, unnecessary career consequences. The number of people who are of like mind to People, Ideas & Objects is significant in volume and I have sought to keep their information confidential for their safety and personal financial benefit. User community members who are sourced from this group are part-time positions. Their commitment will be required when their service provider organizations are being formed, well into the software development phase. There is a desire throughout the industry that something is done to deal with its issues and soon. 

Would the overall population of oil & gas employees and vendors participate in the Profitable Production Rights License? Ownership of a product such as these licenses provides an opportunity for people to enhance their participation level in the industry. Having an indirect value being generated from the production of oil & gas is a risky proposition. With the transferability of the licenses to new properties and the Flexible Profitable Production License these risks are reduced. The leverage realized by these products are enhanced through the value proposition made available through Information Technologies disintermediation.

Current Service Industry representatives

Who have a vested interest in rebuilding the service industry to rebuild their trust in the producer firms. Profitable Production Rights Licenses would provide additional motivation for them to earn value in their chosen industry. Eliminating the oil & gas’ boom / bust cycle and its consequences, which are leveraged by producers to be experienced exclusively by service industry representatives. 

Motivation has been the primary issue in the service industry these past few years. Faith and trust in the producer firms will need to be rebuilt by the producers if they expect to continue with their production profiles. In a “you broke it, you fix it” application of logic. Producers will need to conduct a recapitalization of the service industry through active philanthropic rebuilding of its capacities and capabilities. Providing evidentiary proof that there will be a second, third and more paychecks through the times when producers potentially destroy their businesses once again. Something that field staff will know they can reliably base a career, family and mortgage upon, in what is currently the 21st century. Producer officers and directors should take these comments as an arms length assessment of their past management.

Our user community and their service provider organizations. 

Their participation in these software developments provides further motivation for their commitment to profitability everywhere and always. A means to benefit from a Profitable Production Rights License would be an incremental value-add to them from the value they seek to produce for the industry. Securing additional motivation in providing for the most profitable means of oil & gas operations, everywhere and always.  

Our user community and their service provider organizations are derived from the general oil & gas community. Having a direct participation in the production process is attractive to these people.

These paint an ideal situation where the associated risks and issues of the software and services development are completed on budget and within a reasonable time. They assume the appeal of the Profitable Production Rights Licenses as explained to this point. All inherent risks associated with the purchase of this product are mitigated or overcome. This implies a collective and collaborative effort on behalf of the industry in order for its success. The scale of the issue demands such. And although we’re not there yet, I believe we are close to the time in which the understanding that actions in the form of the collective and collaborative industry wide effort are necessary and will be evident to all.