Cultural Stasis

 For several decades, a pervasive cultural stasis has afflicted the oil & gas industry. In the 21st century, I struggle to identify any significant changes initiated by producer officers and directors. Particularly frustrating is that even the investor activism starting in 2015 resulted in minimal change, aside from the begrudging acknowledgment of minimal dividends—essentially the least effort required to fulfill their corporate responsibilities. Note here that I’ve only been able to impose these deadlines due to the personal risks officers and directors have exposed themselves to. 

The strategy of 'muddling through' remains persistent and ubiquitous. Resistance to this entrenched culture seems non-existent, except within the investor community and among advocates like People, Ideas & Objects. Initiative and innovation have been drained from those gainfully employed in the industry, deterred by the political hazards of proposing change and the potential career costs of doing so. This situation forces many to consider leaving the industry as their best opportunity for advancement. Without the efforts of People, Ideas & Objects, one wonders where the industry might stand, especially if the looming Friday deadline passes without action from the officers and directors.

To say the industry faces issues is an understatement. The officers and directors are entrenched in a classic defense, a turf war against disintermediation— a scenario not unique to our times, reminiscent of the post-WWI era.

Our deadline is Friday, February 16, 2024. Failure of producers to embrace the option we offer signifies an inability to assert control over their business operations. The Preliminary Specification represents a unique market solution capable of timely addressing these challenges. Despite documented losses exceeding $4 trillion in natural gas revenues since July 2007—a situation we had forewarned—the resistance to our solution, which necessitates industry disintermediation, remains steadfast.

Should producer officers and directors neglect our Friday deadline, such inaction will be interpreted as a deliberate acknowledgment of their failure. To label their behavior over the past 17 years as merely negligent would be overly generous. Friday will determine the accuracy of this interpretation. Ignoring our deadline equates to an admission of willful misconduct by the officers and directors. However, should they engage with our option and aim to meet our April 12, 2024, deadline, they have a chance to demonstrate a genuine commitment to resolving the industry's challenges. Therefore, it's reasonable to conclude:

 - Inaction by them equates to guilt.

The Week That Was

 What a week it’s been, with continuous record-breaking differentials in natural gas prices being achieved daily. The closing factor was astonishing! In an attempt to mitigate this embarrassing disparity, they might contemplate ways to reduce oil prices or perhaps distract investors with a press release or a financial report touting record earnings. Anything to make it not look so bad.

Unfortunately, the broader industry, which genuinely needs this revenue, is dismissed as merely greedy and lazy—a common accusation from officers and directors toward the service sector. And since investors have been receiving minimal returns for several quarters, they, supposedly, have no grounds for complaint. We are expected to admire these leaders as they metaphorically 'levitate' down the street, with reverence being optional, for now.

This situation epitomizes the dismantling of an industry, its resources, its people, and its future, orchestrated by those indifferent to anything beyond their immediate interests. Since August 2012, I have offered a solution, only to be met with personal ruin and to serve as their source of amusement. Nonetheless, I remain committed to this cause.

The sheer disregard and surreal nature of these actions are beyond comprehension. The most devastating realization is the bleak future of the oil and gas industry in North America, destined for nothing but a gradual decline.

A Few Questions

 People, Ideas & Objects have established deadlines for North American oil & gas producers to maintain their access to the developments of the Preliminary Specification. The first deadline is February 16, 2024, with details available in our blog post from Wednesday, January 17, 2024. This deadline provides the industry with the option to participate in our software developments by raising its budget by April 12, 2024, a time by which they can face their shareholders and state they have taken steps to resolve industry issues.

The alternative is to continue their obstinacy, which has cost their shareholders the benefit of the $4.03 trillion in unrealized natural gas revenues since July 2007. We can assume the same for oil, though there is no tangible means to determine the amounts, other than to avoid selling at negative prices. We believe these are the types of appropriate questions officers and directors should answer:

• When will the fundamental breakdown in natural gas pricing from 6 to 1, to 40 to 1 be addressed?
• Why was this acceptable?
• Does overproduction of oil generate these same questions?
• With a solution to chronic and systemic overproduction, unprofitable production, or lack of production discipline. Which the Preliminary Specification addresses and has been available since August 2012, why were no steps taken?
• Why has there been a failure to respond to the withdrawal of new funds by investors since 2015?
• Why was there no participation by producers' officers and directors in the market development of LNG into global markets? Was it due to:
• The comfort and satisfaction of reported profits from hedging commodities?
• Their belief that markets can clear any amount of oil & gas produced, even at negative $40 for oil?
• Distractions from other unrelated activities?
• Why was shale declared uncommercial, and would it have been if revenues were appropriately managed and the $4 trillion captured?
• What was the plan behind the clean energy initiative? How were these investments justified using oil & gas revenues?
• What is the vision and plan to address the future? Is consolidation expected to help focus the organization in today’s business environment?
• What other steps are being taken?

As detailed in our Notice series of blog posts beginning in October 2023, People, Ideas & Objects raised the natural gas issue and quantified its magnitude at approximately $4 trillion of actual losses. This is when we saw that none of the producers were participating in the export of LNG on a 'free on board' or 'net back pricing' basis, which are fundamental and basic business concepts.

Based on my understanding of the law, if the officers and directors take steps now to mitigate damages for shareholders, it could indemnify them to some extent, and their Officers and Directors Liability Insurance may not be canceled. I reiterate that I am unaware of their guilt or ability to resolve much of their personal risk, and whether the development of the Preliminary Specification will absolve them of their risks. At this point, issues have matured well beyond materiality, and the options available to the producers' officers and directors are limited to one.

Common sense may continue to not influence their actions. However on February 19, 2024 or possibly April 15 2024, assuming officers and directors ignore our deadlines. What legal dynamics come into play then?

#profit #OilandGas #AGM #Oracle #OracleCloudERP #LNG #officers #directors #boards

@APA_Corp @arcresources @bp_plc @CanadianNatural @cenovus  @Chesapeake  @Chevron  @conocophillips  @CPG_Corp  @DevonEnergy  @Diamondback_EP  @exxonmobil @EQTCorp @HessCorporation  @ovintiv  @PXDtweets  @Shell  @Suncor  @SWN_R2  @TourmalineOil  @Venture_Global  @WeAreOxy

Not That Issue

 People, Ideas & Objects have been discussing how natural gas producers missed an opportunity to rehabilitate prices through the expanded global LNG markets. July 2007 marked the start of the shale phenomenon, which began to significantly alter the natural gas price structure from a 6 to 1 ratio to the heating price of oil, soaring as high as 40 to 1 in 2023. We have documented a loss of over $4 trillion in incremental revenues as a result. Our argument, often misinterpreted by producers, was not about securing LNG contracts to capitalize on 'free on board' or 'netback pricing' opportunities in global markets. Rather, we argued that the expansion of the LNG market presented an opportunity for price rehabilitation. The current focus on LNG contracts is a distraction, one that producers have been precluded from participating in due to their inability to manage their business effectively.

The core issue, which applies to both oil & gas, is the producers' persistent failure to maintain any form of production discipline. Their understanding of markets is flawed, perceiving them as magical entities capable of absorbing any volume of production, even when oil prices plummet to negative $37.63. Relying on a 'muddle through' strategy, they hope to survive on either new investor cash or the cash flows generated by a capital-intensive industry.

A recent YouTube video reveals further misdirection. President Biden announced a policy to halt the approval of new LNG facilities, potentially rendering the contracts announced by producers in the last two months ineffective. People, Ideas & Objects have argued in recent weeks that focusing on contracts offers no relief to producers without production discipline. However, if the Preliminary Specification were operational and production discipline were instilled in the market, followed by the development of the LNG market, the prices realized would align more closely with their costs. This sequence of events was within reach when natural gas prices began to decline in July 2007, but it may have been too much to expect from producer officers and directors.

For the remainder of 2024, at the very least, we anticipate no additional LNG facilities will be approved. This could inadvertently aid North American producers in focusing on the issue of production discipline.

#Innovation #profit #OilandGas #AGM #Oracle #OracleCloudERP #LNG #officers #directors #boards

@APA_Corp @arcresources @bp_plc @CanadianNatural @cenovus  @Chesapeake  @Chevron  @conocophillips  @CPG_Corp  @DevonEnergy  @Diamondback_EP  @exxonmobil @EQTCorp @HessCorporation  @ovintiv  @PXDtweets  @Shell  @Suncor  @SWN_R2  @TourmalineOil  @Venture_Global  @WeAreOxy

Consequences of a Deadline Passed

 As of February 19, 2024, our deadline ( https://bit.ly/director-notice ) may have passed without any action taken by the producers' officers and directors to address their overproduction issues. These issues have led to a loss of over $4 trillion in natural gas revenues since July 2007. Does this inaction transition from negligence to willful misconduct, thereby opening the door to accusations of deliberate wrongdoing?

I am not a lawyer and I am not offering legal advice. I seek to provide a solution to what I believe are existential issues to the oil & gas industry.

In the context of oil and gas, particularly as discussed on platforms like 'Innovation in Oil and Gas' and 'The Preliminary Specification', understanding the distinction between negligence and willful misconduct is crucial. Negligence refers to the failure to take proper care in doing something, which in this case would be the management's inability to address overproduction. Willful misconduct, on the other hand, implies a conscious or intentional failure to perform a duty or a reckless disregard of the consequences of actions taken or not taken.

The transition from negligence to willful misconduct hinges on demonstrating a deliberate or recklessly indifferent attitude towards the necessity to manage production in line with economic and environmental sustainability. Such a transition is not just a matter of passing time but requires evidence that the officers and directors were aware of the consequences of their inaction and chose to proceed or fail to act despite this knowledge.

In the specific domain of oil and gas, where strategic decisions have profound implications not just economically but also environmentally, the principles outlined in 'The Preliminary Specification' emphasize the importance of proactive and responsible management. Highlighting the $4 trillion loss in natural gas revenues underscores the significant impact of such decisions and reinforces the argument for accountability at the executive level.

#profit #OilandGas #AGM #Oracle #OracleCloudERP #LNG #officers #directors #boards

@APA_Corp @arcresources @bp_plc @CanadianNatural @cenovus  @Chesapeake  @Chevron  @conocophillips  @CPG_Corp  @DevonEnergy  @Diamondback_EP  @exxonmobil @EQTCorp @HessCorporation  @ovintiv  @PXDtweets  @Shell  @Suncor  @SWN_R2  @TourmalineOil  @Venture_Global  @WeAreOxy

Change in Communications Strategy

 We are transitioning back to our blog to expand the reach of our campaign about the industry option and its expiration on February 16, 2024. Initially, we anticipated that our audience on X would engage more rapidly with this crucial information. However, it has become clear that our communication is not reaching our blog audience as effectively as we hoped. To bridge this gap, we will publish on the blog and then distribute it on X through IFTTT. This allows us to simultaneously engage both our blog and X audiences, ensuring comprehensive coverage and maximizing our campaign's impact.

Our Value Proposition: New Growth Theory

 People, Ideas & Objects Preliminary Specification will take the administrative and accounting resources of North American producers and reorganize them for independent, individual service providers. This has allowed them to focus on one process and turn producers' overhead costs variable, based on profitable production. In turn none of the producer's costs are fixed in the Preliminary Specification. Creating at least six substantial value propositions that are tangible and clearly evident. Which include:

• Maximize producer profitability by not diluting corporate profits through the production of unprofitable properties.
• Save the producers petroleum reserves for when they can be produced profitably.
• Reserves would no longer need to recapture additional costs of previous losses as future profits.
• Reserves are seen as a cost-free means of inventory and storage.
• Removing marginal production from markets ensures commodity prices dictate market activities. 
• While shut-in producers can focus their innovative efforts on increasing production, reserves, and cutting costs to return their properties to profitability.

Secondly and perhaps more importantly in terms of building value for the greater North American oil & gas economy. Specialization and the division of labor which has proven to be the primary method of building all of the tangible value for western civilization since 1776. Is one of the service providers competitive advantages. Based on these principles, we have reorganized administrative and accounting resources to build value to ensure profitable operations, everywhere and always. The ability to further enhance the industries productivity through specialization and the division of labor will add unknown, unquantified and unqualified means to do so. We will facilitate this through our permanent software development capability, our user community, and their service provider organizations implementing these principles.

We have adopted an incremental method of building value on top of these two methods through Professor Paul M. Romer’s “New Growth Theory” of non-rival costs. In a December 1, 2001 Reason article he summarized his theory as “People, Ideas & Things.” I adopted this principle and named this initiative People, Ideas & Objects as we are object-based software developers. We’ve applied “New Growth Theory” and non-rival costs throughout the Preliminary Specification and elevated it to an Organizational Construct. Standing on the shoulders of giants and especially Adam Smith’s Specialization and Division of Labor. Professor Romer has elevated business thinking in this direction and it is the next frontier in building value for organizations through the mitigation of costs in substantial yet unquantifiable ways to enhance the performance of those that use these methods. 

Professor Romer’s theory is the basis of how cloud computing has brought value to our economy. Users can share the costs of the heavy capital investment in technology, the capacity, capabilities, resources, maintenance and support costs on a variable basis, based on usage. Conversely our user community’s service providers can enhance their service offering through specialization and division of labor that would otherwise be unavailable to individual organizations. We have extended this thinking to include not only Oracle Cloud ERP but also our Cloud Administration and Accounting for Oil & Gas Software and Service to the managed shared and shareable resource. Eliminating the need for each producer to build, resource and maintain the necessary non-competitive Information Technology, accounting and administrative infrastructure they need as dynamic, innovative, accountable and profitable oil & gas producers. Providing a standard, objective and value driven service that shares the sole objective of ensuring oil & gas producers achieve the most profitable means of oil & gas production, everywhere and always.  

The capture and implementation of Professor Romer’s theories is one of the seven Organizational Constructs of the Preliminary Specification. All seven are focused on building value for producers and providing tangible means to do so. Establishing a culture based on preservation, performance and profitability to replace the failed “muddle through.” In this configuration, they are available through the Preliminary Specification, our user community, and their service provider organizations. They’ll be established with permanent software development capabilities and a user community that will iterate on these principles to bring further value over time. 

Professor Paul M. Romer

Published in October 1990 “Endogenous Technological Change” became the foundation of “New Growth Theory” in economics that has developed and provides value throughout the economy through its application. In a Reason Magazine interview Professor Romer explained many of the points.

Growth in this model is driven by technological change that arises from intentional investment decisions made by profit-maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a non-rival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported. Instead, the equilibrium is one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth. S71.

Professor Romer won, or maybe best described as shared, the 2018 Nobel Prize in economics for these principles. They are an incremental value-add to the traditional specialization and division of labor that has carried that weight exclusively until now. It is this principle of sharing non-rival costs that will mitigate what we believe to be the secondary reason for the systemic lack of profitability in oil & gas. High overhead costs are currently at the corporate level. We have shifted those to charge the actual, factual overhead costs incurred by service providers' billings directly to the individual Joint Operating Committee. There they become a cost of the property's product that is captured in the profitable commodities sale price. Through the sale, these funds are recaptured and returned to the company, which are used for overhead costs for the following months. Currently producers capitalize their overhead and therefore sell their product below cost and are not recovering the cash spent on monthly overhead expenses. As they indeed state, they are “putting cash in the ground.” Having to source new cash to finance their overhead expenses each month.

By sharing the administrative and accounting infrastructure, turning these costs variable based on profitable production, applying specialization and the division of labor and returning the cash consumed by monthly overheads to the administrative and accounting areas. As is done through the development of People, Ideas & Objects user communities and their service providers. And delivering to industry our Cloud Administration & Accounting for Oil & Gas Software and Service. People, Ideas & Objects are adding real value to North American producers in terms of resolving what can be described as their largest impediments to profitability. Chronic overproduction, or unprofitable production as we describe it and high overhead costs. Which leads to their unique characteristic and phenomenon of “putting cash in the ground” and “building balance sheets.”   

Oracle CloudWorld 2022 & 2023 Conference

It was during this conference that it became apparent that Oracle was pursuing the incremental value adding process that Professor Romer defined in his paper “Endogenous Technological Change.” Augmenting their generic business processes with service providers such as banks and logistics companies with fully optimized and integrated services with Oracle Cloud ERP, just as People, Ideas & Objects are approaching the unique oil & gas attributes. We all have an extensive software development workload ahead. I see at least 20 years of work in this area. Incrementally and iteratively building value upon prior innovations in the service industry, earth science and engineering, the Preliminary Specifications development and Oracle Cloud ERP. 

The most impressive example provided during the 2022 Oracle conference was the expense reporting features with J.P. Morgan Chase. If the user uses their credit card for business, they can choose the type of expense charged to be classified into an account within their employer's system. Oracle Cloud ERP would evaluate the charge based on the company's policies and determine its eligibility. If eligible it would be processed and payment made to the employee or the credit card company. Eliminating the massive number of hours and costs incurred in expense reporting by organizations during the year in their current systems. This is reduced to a few milliseconds of processing time. While the cost to the organization to use Oracle Cloud ERP is incidental in terms of the time spent on Oracle Cloud Infrastructure. In addition, the engineering costs to develop the specific system, these software engineering costs are amortized across the global population of Oracle Cloud ERP customers using the feature. To a lesser extent People, Ideas & Objects provide this level of service to North American producers for their unique oil & gas attributes. The lesser extent is due to the smaller population of oil & gas users for which this development and implementation, and its costs, will be targeted. As such, North American producers have the opportunity to realize both Oracle and People, Ideas & Objects innovations concurrently and at substantially reduced costs. These are due to Professor Paul Romer's theories. 

Increasing the value that oil & gas producers gain from the use of Oracle Cloud ERP and incorporating it in our value proposition. Their 2023 CloudWorld Conference built upon the innovations they introduced in 2022. Generative Artificial Intelligence is now generally available throughout the Oracle Cloud ERP suite of applications. This takes these automations and their incremental capabilities to a more substantial level with tools that users were unaware of that will be able to generate incremental revenue from. If we consider just the producers Research & Capabilities and Knowledge & Learning modules, how they will be enhanced through Generative AI this is the method People, Ideas & Objects feel that the scope and scale of the issues and opportunities that oil & gas are presented with can be approached. 

If we consider the timeframe, the technology and the state of the industry. The scope and scale of the repair becomes untenable in the hands of those Keystone Cops who seem to have few original ideas and then go about proving them wrong in the public market. My example would be the recent discussion of production discipline where it was uniformly interpreted to mean they needed to sign new LNG export contracts. Indicating that traveling in unison ensures no company is singled out for their accountability in the matter. 

When it comes to resolving these issues we therefore have three options. 

• The first is to continue to repeatedly travel down each and every blind bunny trail in unison. Only to discover the bandit the Keystone Cops are searching for is now at the bank.
• Have each individual producer deal with the details of the development of their own Intellectual Property. Then undertake the scope and scale of software development that is commensurate with People, Ideas & Objects Preliminary Specification at each producer location. 
• Or share in the cost of development and focus on our user community to deal with the specific issues and opportunities as their distinct competitive advantage. Where they’ll have the understanding and resources, including access to the Intellectual Property and developers to make changes to the software code.

Seeing the broad scope of this challenge and the approach of “muddle through” makes sense to the officers and directors. 

Professor Romer’s "Endogenous Technical Change" leverages specialization and the division of labor in material ways. It is revolutionary and applied throughout the Preliminary Specification to the benefit of the oil & gas producer and greater oil & gas economy. To choose otherwise in this highly technical and complex society. Where the speed and pace of business has proven to be far beyond the capabilities of the officers and directors. Where the scope and scale of the issues are existential in their magnitude, such as what the industry has been faced with over the past few decades. To misunderstand the business, the direction, the vision and strategy of what to do, when and where to do it. As displayed by the officers and directors in 2024. Leaves one asking how is it that consolidation will do anything but accelerate the demise of the oil & gas industry in North America?

X Hits the Spot

I'm attempting to reignite the passion I once found on Twitter, now on X. Back in 2018, I faced a shadow ban for expressing skepticism about clean energy, which, unbeknownst to me at the time, severely limited my visibility. This type of ban makes your tweets invisible to your followers, essentially silencing your voice without you knowing.

However, the real challenge isn't just the invisibility. It's the aftermath—when the algorithm interprets the lack of engagement as disinterest, making it increasingly difficult to reach an audience. Despite having over 480 engaged and high-quality followers in the oil & gas sector, my activity and reach took a significant hit. Now, with 309 still-valuable followers, the vibrancy and interaction I once enjoyed have dwindled. Despite my efforts, regaining my former algorithmic favor seems an uphill battle.

With Elon Musk at the helm, Twitter has transformed. It's now a platform ripe for lively discussions and open exchanges, offering a valuable opportunity for meaningful dialogue. My persistence started to pay off in January 2024, when I welcomed my first non-spam follower since the ban—a small yet hopeful sign of reconnection.

I'm eager to broaden the conversation and engage with a wider audience. If you're interested in the intricacies of oil & gas ERP systems or the broader energy sector, I invite you to join the dialogue. Let's revitalize the discussion together at https://www.twitter.com/piobiz

Our Value Proposition, Intellectual Property

 There are two undeniable truths that producers state in unison.

• They’re profitable.
• They’re innovative.

It takes significant imagination to comprehend the points being made here. I believe the meaning is implied in “muddle through,” if they state it then it must be true. People, Ideas & Objects find these statements particularly offensive and part of the motivation as to why we’ve been developing our solution. However, these have taken on a more deliberate and devious meaning these past few years. First we were treated to their summary statement that Shale would never be commercial. Then secondly, clean energy was the industry's future. Bringing forward somewhat of an admission that they could not make a profit. Falling back on their cultural propensity to abandon what was “the next great thing” instead of attempting to commercialize the asset or make it perform. That would have required innovation in order to do so. 

I’ll add to these allegations that from a business perspective these officers and directors have absolutely no understanding of what it is they’re doing. When they continue to do the same thing over and over, possibly expecting different results, at least others hold that expectation of them. The most aggravating aspect of the proven $4.03 trillion dollar loss of revenues from the collapse of natural gas prices. Is their segue into clean energy due to Shale being “uncommercial.” When your shareholders are dissatisfied with your performance for almost a decade, and you did nothing to mitigate that revenue loss. When others were offering solutions to eliminate that loss, and you did nothing. It provides further evidence of officers and directors willful misconduct.

To the issue of this blog post and how Intellectual Property becomes an Organizational Construct in the Preliminary Specification. The 21st century business value is mostly derived from business models supported by software. That software is supported and ownership is determined by Intellectual Property. There are other forms of Intellectual Property involved in oil & gas since it is a science based industry. Much as anywhere you look in North American oil & gas, anytime you look behind the door, there are issues hiding in plain sight.

Oil & gas producers have maintained a poor man’s strategy in terms of how they access IP from vendors, their secondary and tertiary industries. They don’t recognize any claim and certainly will not attribute any value to IP, and as a result have not paid any monetary compensation for the hard work that has gone into any research and development. Outside of research and development in terms of geo-technical innovations and IP, producers are not responsible for any of the innovations that they’ve claimed in the past decades. All of their benefits have been gained as a result of the hard work of individuals, mostly, in the service industry. Once they do discover a product or service that generates significant value to the oil & gas producer. Their trouble begins. 

First it is not accepted until the vendor is willing to have the product or service reverse engineered to better understand the actions taking place. No commercial acceptance of this will occur until such time as the service industry representative capitulates on the point of reverse engineering. Then surreptitiously the product innovations are clearly discussed with the innovators competitors in order to sponsor competition of the type that will price their products with no inherent costs of the research & development. Forcing the innovator to compete based on price. Rendering further Intellectual Property development and innovation moot. 

People, Ideas & Objects finds this style of “innovation” particularly vile. The Preliminary Specification establishes a solid foundation for which the Intellectual Property of individuals within the greater oil & gas economy becomes available to those original authors, innovators and entrepreneurs. This is provided through the Resource Marketplace, Research & Capabilities and Knowledge & Learning modules that were published in final form in August 2012. The interaction between these three modules is comprehensive and beyond this discussion. I recommend a full review in order to appreciate the implementation of our solution. 

Another key point is the tearing down of the basis of Intellectual Property (IP). An industry such as oil & gas is based on earth science and engineering needs. To expand the industry's capabilities in science and innovation we will need to overcome many difficult problems. And as we progress, the volume of ideas needed will be an order of magnitude greater than what is required today. These problems cannot be solved in an environment where there is no upside for individuals to solve them. Addressing the motivation to solve these problems and enabling people to earn the rights to their Intellectual Property through the People, Ideas & Objects application modules is the first step in making the necessary industry-wide changes. This will, in turn, turn the oil & gas industry into a more dynamic, innovative business.

With the state of the industry as it is, its IP is in disarray, and the capabilities and capacities derived from it are deteriorating as we speak. Making this an IP gold rush in the industry, in order to save it. Producers' difficulty is that none of this is published and publishing is how copyrights are earned. Let me pass on one more pertinent fact that I have learned since I’ve been so reliant on copyright. Patents and trademarks are defensive in nature in that they protect your IP. Copyright is offensive and allows expansion of one's Intellectual Property. Building on the shoulders of giants. Copyright does not secure rights to an idea. It only provides you with monopoly rights to expression of that idea. In other words, it must also be pursued and maintained in the same manner that I do here at People, Ideas & Objects. Until the Resource Marketplace and other modules of the Preliminary Specification are built I see this IP of earth science and engineering as unclaimed property. Therefore the first thing we must do for the dynamic, innovative, accountable and profitable producers in the oil & gas industry is change their competitive advantages. They'll now read: 

Coordination of the earth sciences & engineering markets' capabilities & capacities, as well as their land & asset base. 

One of the most promising forms of IP today is software and algorithms, Artificial Intelligence and Machine Learning. What if these were also the foundation of a producer firm as competitive advantages? This would generate revenues for producers and the people who developed them in the form of service revenues, license fees and royalties etc. Helping to establish the new and innovative oil & gas industry. Supporting that second source of revenue of the producer we’ve established through our Work Order system.

Business changes quickly. Intel's dominance in the chip market is now a constraint that causes them to lag in that market in consequential ways. As the dominant processor manufacturer, its processor architecture has been deemed redundant for future purposes. Business value is no longer in processor manufacture, it's in design. Contract manufacturing is a commodity business where others find profits and opportunities in that area where Intel does not compete. Design is now valued. Read the summary of Ampere Computing’s Leadership Team that now has one of the most powerful processors available in commercial volumes. Oracle has declared they’re moving their cloud offering to Ampere processors, which Oracle’s Cloud is offering today, and People, Ideas & Objects will run the Preliminary Specification exclusively on Ampere which will provide better cost / performance than Intel based cloud computing can offer. 

This is the changing business world and these are the revised business rules. It comes down to one word, the individual. If you don’t see what the Intel rebels did when they established Ampere. Your most promising opportunities may remain with the established organizations. Individuals in technology, oil & gas and everywhere are facilitated by that remarkable innovation, the door. 

The Internet demands one thing which is difficult to achieve. Software to organize. To organize society today, with its global reach, cannot be done spontaneously. There is no serendipity when individual A meets individual B 2,000 miles away on the Internet. This is done through software providing them with the means to conduct their business. Software defines and supports an organization. Without People, Ideas & Objects none of this oil & gas vision will come about by sitting and waiting for the phone to ring. At least it doesn’t appear to have happened.

The question also needs to be asked: why does Apple innovate consistently? Although their products are more costly, they bring incremental value to their customers through the innovation they provide. They too rely on Intellectual Property as the basis of their value. They consider themselves a software company that sells hardware to bring about customer value. Software defines and supports organizations. 

It’s no longer enough to just own the oil & gas asset. You must also have access to the software that makes the oil & gas asset profitable. We now believe as a result of the Oracle CloudWorld 2022 & 2023 conferences that all firms in all industries will have distinct competitive advantages by using Oracle Cloud ERP. These benefits should be seen as incremental to People,Ideas & Objects et al. 

The importance of IP in the oil & gas industry organizes innovation. The most productive innovation is when it’s organized under a structure that allows the market to focus on its development. The North American marketplace established IP centuries ago and we have reaped its benefits. The United States included copyright in its Constitution. Copyright must be published to earn it. Exposing it to the market where it can be built upon and enhanced by others. It reduces the “me-too” phenomenon that producers have created in the past to generate price competition in the service industry and elsewhere. Ensuring everyone was rendered “blind sleepwalking agents of whomever would feed them.” Is this how an innovative industry is going to be built, with producers sitting on top of a primary industry and using its revenues to endow their favors with the rewards of a penny or two here and there? Will the oil & gas issues we are faced with going to be resolved on this basis?

The proposed organizational structure of the oil & gas industry, including People, Ideas & Objects, will be built with innovation as a core Organizational Construct. Additionally, it will be grounded in the law of the land, which will define the permissible scope of innovation. Since the law does not permit copyright violation, adherence will ensure the absence of violators. A self-policing mechanism will reduce the costs associated with unnecessary and endlessly repeated duplication of innovation in the industry. This approach provides incentives for those with original ideas, thereby fostering the motivation necessary for the challenging work ahead. Knowing their work will now be trusted and respected. To do so not just today, but always and everywhere. 

These copyrighted publications enable understanding of how things are done. Building upon that understanding with additional innovations elsewhere. Intellectual Property thus offers a robust legal framework that promotes innovation and eliminates costly redundancies and duplicated efforts. It educates and motivates us to do the difficult and challenging work we agree is the foundation of the industry. This applies across the greater oil & gas economic structure and includes the secondary and tertiary industries. The 21st century will be known for leveraging Intellectual Property, or intelligence. Much as the last century was about the leverage of mechanical effort. Avoiding this reality or attempting to opt out would be foolish in the extreme.

What motivates people to develop these 'ideas'? Is it not a blend of self-interest and the aspiration to contribute value to the industry? Officers and directors have been well compensated and the industry has been destroyed. A further contrast is the fact that they've not been motivated by discovering ways to generate value. Intellectual Property is therefore not only an Organizational Construct that can control the innovation process throughout the industry. The participants are motivated to build value through incremental profitability, cost reduction, improved production deliverability or reserve expansion. It is the law, and most importantly, it has been proven. The reason the United States dominates the global economy in terms of performance is because their Intellectual Property laws provide the motivational and organizational principles of how their economy and society operate. It assumes people are intelligent beings, not serfs like officers and directors assume. It is productive, constructive, focused on generating value and benefits society. As a science and technology business, oil & gas is second only to the space industry in terms of complexity. Under their business model, what have these officers and directors been doing?

The next 25 years will be comprehensively difficult for the greater oil & gas economy. By far the most challenging time period in its history. How will industry resolve these challenges? Are we structured appropriately to meet these demands? Who today is motivated to undertake the difficult task of approaching the multitude of issues and what will be their motivation?

Intellectual Property in Oil & Gas Today.

I believe the business model of producer firms is based on having a pool of knowledge readily available at no cost. They require this access whenever and wherever needed, aligning with their interests. Therefore they couldn’t have anything published in this environment as it would be counter to their interests in terms of availability and access to this pool of Intellectual Property. And therefore nothing has been documented in the industry from the point of view of earth science and engineering science and technology. They are leaving themselves fully exposed to any author who publishes IP at this time.

Two other aspects of Intellectual Property are first, safe harbor provisions. Why don’t producers just turn around and sue the copyright holders? This would be an unfortunate world where “big” ruled the earth and we serfs would be the drones who were forced to comply with their every command. The safe harbor provision states that you cannot sue the copyright holder. Secondly, the division of tacit and explicit knowledge. Tacit knowledge cannot be captured or written down. Only explicit knowledge can. Therefore it is up to people to take the explicit knowledge they have, earn the copyright, and apply their tacit knowledge to generate their value as a service. Intellectual Property services are as critical as the IP itself. Just as People, Ideas & Objects have our user community heading up their service providers which will deliver our software and their tacit knowledge as services to the producer firms. As a consequence, the tacit and explicit knowledge underlying the Preliminary Specification can be delivered effectively and efficiently. 

These efforts of ours to use the Joint Operating Committee as the key organizational construct of the dynamic, innovative, accountable and profitable oil & gas producer began in August of 2003 with a research proposal to industry. People, Ideas & Objects subsequently conducted that research ourselves which was completed with the August 2012 publication of the Preliminary Specification. A decade of rigorous research reflected and absorbed throughout this blog and elsewhere. And now that the obvious need in the market for this ERP system has come about, Boards should be aware that the time taken by People, Ideas & Objects to conduct this research, to effectively deal with these issues and resolve them has offset what would be the industry's largest cost of all. The time needed to generate a sustainable, viable, and workable business model. We enable them to yield untold value creation in the short term and not have to undertake the minimum ten years of research themselves. Our user community, research, and Intellectual Property make up our three strategic competitive advantages. Anyone offering similar aspects to the Preliminary Specification in their ERP software would violate our Intellectual Property and we would expect, as law abiding citizens, the oil & gas producers would adhere to these principles of law, recognize that and refuse to use any software that violates our IP. Any violators might be discovered through our recently announced Whistleblower Program. Therefore producers would have to invest the decade of research and avoid any aspect of the Preliminary Specification within their solution. 

It is People, Ideas & Objects, our user community and their service providers that channel these Organizational Constructs towards innovation, productivity and profitability through software. Software defines and supports an organization. The only solution as it stands today, from a creative destruction and disintermediation point of view, is People, Ideas & Objects, our user community and their service provider organizations' implementation of the Preliminary Specification. The natural forces of disintermediation and creative destruction are obstructed through the diversion of industry revenues away from the development of initiatives such as the Preliminary Specification. And therefore are directly promoting the status quo behaviors that are and have been proven to be disastrous. This has been the motivation behind the officers and directors lack of action. Avoidance of their disintermediation in order to maintain their creative personal compensation continues.

Our Value Proposition, Specialization and the Division of Labor

 Since 1776 the only basis for increased value generation has been the expanded definition and use of specialization and the division of labor. Adam Smith proved in his research that by reorganizing a pin factory around specialization and the division of labor between individual workers, augmented through proficiency, automation and mechanical advantage, the factory output increased 240 fold. Today the opposite is true. Software and most particularly ERP software has sealed organizations to a definition that is unchangeable through any means other than changing the software’s process definition. This aids producers' status quo configuration when they don’t sponsor or initiate any change in ERP software. Instead, focus on engineering tasks such as cost cutting to generate business value. If we are to achieve profitable energy independence and meet consumer energy demands in the 21st century it will be the result of an “all of the above” energy strategy. For the next several generations the largest component of energy makeup will be oil & gas. Therefore, dealing with these issues and opportunities demands that we increase the industry's throughput substantially in order to meet the increasing demands of the North American marketplace. 

It is therefore necessary to ensure that we proceed from this point forward with the defined capability and capacity to enhance the ERP software used in North American oil & gas. And to do so to facilitate an increased level of specialization and division of labor that is iterative and constantly evolving. People, Ideas & Objects provide for this and are configured specifically to ensure this. Our business model depends on change. We generate revenues from software development changes initiated by our user communities interactions with industry. Our user community will be available everywhere and always to work with our developers to make the changes they’ve identified while working in their service provider operations. These service providers will be configured to deliver the explicit knowledge captured in our software and the tacit knowledge provided by their services. Our user community members are therefore on the ground in the industry on a day to day basis in the administration and accounting of producer firms. They are the exclusive, licensed individuals authorized to change our software's Intellectual Property. Our developers are licensed to accept no one else's input. In other words, our user community members have the power necessary to ensure that the processes they manage ensure the most profitable means of oil & gas operations everywhere and always. Only our user community members own and operate service providers. If anyone in the industry wants to know who they need to resolve their issue, they only need to contact the relevant user community member. 

For Whom?

People, Ideas & Objects Preliminary Specification brings significant advantages to all producers. This is a solution that should be used by all producers in the North American industry. Whether that is Exxon or the producer firm that originated at breakfast. This also applies to any and all other types of secondary and tertiary industry firms involved in the greater oil & gas economy, no matter their size. While we provide advantages to junior and startup oil & gas producers, we put their organizations in a position to succeed and grow. They’ll have distinct competitive advantages over today's business model. These are brought about through the reorganization of producer firms' administrative and accounting resources into our user communities service provider organizations. And the implementation of our Cloud Administration & Accounting for Oil & Gas Software & Service provided by them. 

The producer organizations that we define and support in the Preliminary Specification employs and deploys higher levels of specialization and division of labor. We feel the overhead costs of producers demand these be dealt with by making organizations more efficient through the application of advanced, and continually advancing, specialization and division of labor. We also turn their overhead costs from a fixed, producer based capacity and capability, into a variable, industry based capacity and capability, their variable behavior being decided upon a Joint Operating Committee's ability to produce profitable production. 

Our Preliminary Specifications support a reallocation of the producers' administrative and accounting resources into individual service providers headed by members of our user community. Our user community and their service providers are independent businesses that specialize in one administrative or accounting process. They conduct that process on behalf of the entire industry as their client base. If a Joint Operating Committee produced that month, under our decentralized production model price maker strategy, we can reasonably assume it is profitable. Upon production the processes administered by each service provider will be invoked through our task and transfer network. The processes undertaken and their associated billings will be charged directly to their Joint Operating Committees. If it’s not profitable, the property would be shut-in and none of the service providers would receive any data from our task and transfer network. Therefore, no processes will be conducted and no service provider billings will be rendered. The shut-in property does not incur a profit or loss, but is a null operation. Under either scenario, overhead costs will be covered in the current period through profitable operations or by the fact that costs will be variable under the Preliminary Specification. Meaning they won't be incurred when a property is shut-in.

• Producers will benefit substantially from beginning operations in this manner. 
• First they will reach their optimum profitability when losses stop diluting profitable properties. 
• Corporate profitability whether that is at 25% or 100% of the producer's production profile. 
• This will preserve their oil & gas reserves for a time when they can be produced profitably. 
• Those reserves will no longer have to carry the incremental costs of losses otherwise incurred if they were to have continued producing unprofitably. 
• Keeping the commodity as reserves can be seen as an affordable means of storage where the subsequent costs of production and storage are zero. 
• Commodity markets will find their marginal price when unprofitable production is removed from the marketplace. 
• Increasing the value of all producers' production by realizing marginal prices across their production profiles. 
• Providing for the replacement value of exploration and production.

Producer officers and directors assert this is collusion. If making independent business decisions based on detailed actual, factual, standard and objective accounting information at the property level that determines profitability is collusion, it is no wonder producers are incapable of profitability? 

Our decentralized production models price maker strategy engages North American oil & gas producers in disciplined production. Achieving maximum profitability can only be achieved when unprofitable properties stop diluting corporate earnings. Therefore the need to ensure they are fulfilling their primary task of maximizing profitability becomes the predominant method of production discipline. 

People, Ideas & Objects has pointed out the natural gas revenues lost over the past sixteen years as a result of a lack of production discipline. Noting $4.0 trillion in revenues that were rightfully belonging to the producers were allowed to pass to others who took advantage of officers and directors poor management. The same might be true for the oil side of the business however there is no objective way to measure what the price should be. What we can determine however is the skill that has been involved in “building balance sheets” has taken away from maximizing profitability. Although only $5.7 trillion of our $25.7 to $45.7 trillion value proposition was attributable to regaining these revenues through our decentralized production models price maker strategy. It is reasonable to assume that in the next 25 years we’ll be able to attain at least that amount. 

With our clear objective of rebuilding the industry brick by brick, and stick by stick. This is in a style of rebuilding that involves a dynamic industry based on a decentralized, connected environment such as the Internet provides. People, Ideas & Objects et al don’t have to break down oil & gas to rebuild it. The rebuilding is necessary due to the damage and destruction the chronic mistreatment industry has experienced at the hands of the officers and directors of the producer firms. Hierarchical strata of advanced paper shufflers define future failure. Consolidation of these will only seal them more permanently. To bring about an ERP system for the industry such as the Preliminary Specification provides, we must consider the opportunity of disintermediation. 

We will need to consider the cultural propensity to “muddle through” and its destructive ways. This culture needs to be replaced by one based on performance. Changing that culture can not be done from within, especially when the issue can not be readily accepted for several decades. We can accurately predict that producers will do nothing. 

The nature of this rebuilding process is the cannibalization of the processes that have occurred since investors sent their message of dissatisfaction to producers in 2015. Being solely dependent upon investor cash meant organization cuts were necessary. This was when the producers' sole source of value generation, the investors' annual injection of additional capital, was no longer available. Keeping production processes in place was the priority and those processes involved in the early stages of oil & gas exploration and development were subject to layoffs. Assuming that the situation is alleviated in the following year and those resources would be recalled. Since the inactivity and abstinence of the officers and directors has continued for eight years, we can assume that the process management has been cut well into the eighth year of the exploration and development cycle. Therefore either way it needs to be rebuilt. The comment that I find appearing in what I’m reading and hearing today that concerns me the most. Is the statement “gradually then suddenly” from Ernest Hemingway in terms of how change occurs. Or how change is forced upon those inactive participants.

However, bringing one of the most complex systems, Oracle Cloud ERP, into one of the most complex industries into the environment of the small and startup, or any producer, is a risky proposition to consider. How could that ever be a commercial software product? Or be provided to a commercially viable small or junior oil & gas producer? And that is the fact of the issue we are facing today as a result of the officers and directors “consolidation as a solution.” We need to ensure the future of the industry is in the hands of oil & gas men and women. They will knock down the barriers that stand in their way, just as so many have done before. The constraints and reality of regulatory, compliance and investment demands are real impediments to these needs. That is, if producers could not access the kind of systems necessary to operate in that environment, no matter their size, capital markets would remain forever closed. Today’s business model makes this an untenable barrier, and it will be even more so in the near future. Investors have explicitly requested Tier 1 ERP systems be implemented. Therefore all producers need to understand that the production discipline provided by the Preliminary Specification is necessary across all classifications of producer firms.

Under the Preliminary Specification a startup or junior producer would no longer need to establish the point where they’ll have to generate the full $3 to $5 million of free cash flow necessary to offset the annual base overhead of the producer firm. For administrative and accounting purposes, they will only incur the variable overhead costs of the service providers fees that they use. Accessing the explicit and tacit knowledge of the service providers process management through our Cloud Administration & Accounting for Oil & gas Software and Service. In addition, they will incur the costs of software development assessment by People, Ideas & Objects each year. As we noted earlier, not only are these overhead costs variable, but if they’re charged, that denotes profitable production. This indicates these costs are covered. In contrast, if the property is not producing it does not incur any overhead costs. And there are more attributes of our system that benefit the new oil & gas industry we are rebuilding. The ability to have your working interest partners within the Joint Operating Committee participating in the same ERP software developments and implementations will bring substantial advantages to all producers of all sizes. Our user community and their service provider organizations are a reorganization of the industries administrative and accounting resources. Focused on an individual process they maintain the software and service for that process across the North American continent. Using software and specialization to organize a producer's administration and accounting in a standardized, objective manner.

The Preliminary Specification also implements specialization and the division of labor across the producer firms, particularly in the earth science & engineering capabilities and capacities. As a first step in our solution for startups and junior producers, we listed this as the first step. These capacities and capabilities are becoming increasingly burdensome to each producer firm due to their unshared and unshareable nature. However, they are for different reasons than the administrative and accounting difficulties mentioned. The costs incurred to maintain these capabilities are growing as a result of the advancement of their science and technological development. This requires further specialization of the producers' capabilities, and critical competitive advantages. We believe that all producers have reached the point where the demands to maintain these capacities and capabilities have expanded beyond the usable population of these technical resources. Or will soon. With the retirement of the brain trust of the industry, and the universities not producing anywhere near the replacement number necessary, a critical shortage will soon demand that these technical resources will become too rare, too costly and too unavailable to maintain, not to mention, expand the deliverability of the North America-based industry. 

Consolidated producers will have particular difficulty managing this technical resource when entrepreneurs see the startup opportunities we’re defining here. That is, if only there was an ERP system that provided a solution for oil & gas startups to deal with the finance, compliance, governance and regulatory environment. This would enable them to access funding! In addition to this limited technical resource supply we also believe that producers' firms are reaching a point where the costs of their scientific engineering and geology needs are beyond their commercial grasp and necessary to maintain their just-in-time operator status. Even so, a higher level of specialization and division of labor will be needed in earth science & engineering. It is the unshared and unshareable characteristics of these capabilities that we find the nascent difficulties to overcome. As operators, producers require these technical resources for a variety of just-in-time purposes. If we assume that across the industry the utilization rate of these technical resources is 75% due to organizational inefficiencies. Then by releasing that other 25% and deploying that unused and unusable capability more effectively we’ll have what I believe to be the second aspect of the solution to these pending and most certainly future difficulties. A one-third increase in capacity with higher output from enhanced specialization and division of labor, providing a good start to solving this pending critical resource shortfall.

Instead of letting another issue manifest itself as a crisis level issue, People, Ideas & Objects et al have implemented a variety of changes within the Preliminary Specification. As soon as the Preliminary Specification becomes operational, the producer firm will have two revenue streams. Their oil & gas sales are augmented by their earth science & engineering capabilities being deployed and used for revenue generation. The individuals can consult with one of the producers' own Joint Operating Committees or with other producers / Joint Operating Committees, as their clients. Due to the specialization and division of labor demands producers will need to choose to specialize or acquire specific capabilities and competitive advantages. These producer revenues will then offset engineering and geological costs incurred and charged to Joint Operating Committees or other producer clients. And through this enhanced specialization and division of labor, we achieve the same benefits of the 240 fold increase in productivity that Adam Smith experienced in his pin factory.

The second source of revenue should be seen as the starting point of oil and gas industry startup revenues. The startup's capabilities and competitive advantage will be less specialized than those of more advanced companies. The additional costs of head office operations not considered in the administrative and accounting category will be offset by these revenues. And this will apply to all producers no matter their production profile. When producers specialize in their distinct competitive advantages, and all producers including Exxon, Shell and Chevron will need to do so, the demand for outside technical resources will be required to augment their needs.

In a world where software defines and supports organizations. This is some of the what, how and why we can provide when the Preliminary Specification is delivered to all producers in the North American industry. Instead of being mere serfs as the officers and directors wish to continue treating the engineers and geologists, they’ll be able to take control of their careers from this point forward. The facility most responsible for this capability of making direct labor charges to the Joint Operating Committee is what we are implementing in the industry. This is our Work Order. Officers and directors may claim that charging labor directly is already available through their systems. Which is true, they can allocate some of these labor costs to the field. However, some are assumed to be captured in overhead allowances which the Preliminary Specification eliminates the use of. However their methods do not provide the necessary features of raising it to the point of making it a defined revenue stream for the firm. Its ability to interact throughout the industry is also a benefit. Allowing for interactions between resources and where they need them. Subject to appropriate approvals and governance. Theirs does not enable the second purpose of our Work Order system, which promotes industry-wide innovation through the establishment of working groups etc. Our Work Order system bills its costs at all times to corporate overhead, Joint Operating Committee overhead, an AFE or to a lease. Therefore the billable time of the individual engineer or geologist should be deployed within the producer 100% of the time or not be working for the producer. A fundamental component of this is requiring these people to establish their own producer firms. These firms are based on their earth science and engineering competencies, capabilities, and Intellectual Property. An industry where it will be less about who you know, but what you know and what you're capable of delivering, what is the value proposition that you’re offering? Preliminary Specification facilitates dynamic, innovative, accountable and profitable oil & gas producers, whether they are startups, juniors, intermediates, seniors, or multinational companies.

Hyperspecialization

We live in a time of significant change, collaborative work and a specialized work environment. Hyperspecialization is breaking processes down further to the point where the aid of software automation provides enhanced productivity through the division of labor between humans and computers. The future holds that Generative AI will enhance these. Our user community and their service provider organizations are configured to enable these attributes for the oil & gas administrative and accounting aspects of the producer firms and industry. 

In late 2023 People, Ideas & Objects undertook the task of building our third and final competitive advantage, research. Our other two are our user community and Intellectual Property. This was a result of beginning a comprehensive review of hyperspecialization and finding we needed more capacity and capabilities in order to undertake the task. What we were able to determine at this time was our belief in the market would need to be preeminent in how these specialized services came about. And what we have chosen to do in our research is to provide an understanding of the issues and opportunities of hyperspecialization to our user community for their guidance in forming. 

In Summary

Producers gain substantial value through the Preliminary Specification when the reorganization of the administrative and accounting resources is reconfigured into our user community and their service provider organizations. Instilling a fair and reasonable means of production discipline can only be achieved through profitability. If a property is profitable, it produces; otherwise, it constitutes an economic waste. Earning the replacement value of what it will cost to explore and produce a new barrel of oil or gas equivalent is what is reasonable. All of these depend on a more accurate accounting. This involves providing each property with comprehensive financial statements based on actual, factual information every month. Financial statements that are objective and standard across the industry so that every producer will know when their property reports a loss there is no question as to the next step. This ensures that the assessment of profitability is consistent with that of other North American producers. Would any other producer trust the “objective” nature of an industrialized version of Exxon’s ERP system?

Unfortunately industry has now placed itself in a position where it has limited its options to People, Ideas & Objects, our user community and their service provider organizations. With that they have also imposed the fact that failure will not be an option. If the industry seeks profitability to achieve: 

• Energy independence for the rest of the century. 
• Provide consumers with abundant, affordable and reliable energy.
• Prosperity for all concerned within the industry, 
• A dynamic, innovative, accountable and profitable industry everywhere and always.

Today officers and directors do not have the culture, understanding or ERP software to do so. It does not have the capacity to change. An incapacity which has proven itself persistent over the long term. Despite the consequences of trillion of dollars of damages. Despite being faced with the most challenging future. Despite the desperate conditions the energy industry has been managed under them. A leadership that has proven itself unaware of existence outside of its own skin. Doesn’t care about profits, doesn’t know how to earn them and can not earn them from the remainder of what is left and the culture they’ve instilled. A leadership prone to erratic decision-making without clear reasoning. Never listening to shareholders who’ve expressed serious disenchantment. Declaring their past decades efforts uncommercial without a moment's thought as to how to remediate them or make them profitable. Wandering off into unrelated industries, only to return to what was declared uncommercial 18 months earlier. 

Specialization and the division of labor are the only means in which value has been gained. It has been argued that Adam Smith’s 1776 work in the Wealth of Nations was the turning point of western civilizations rapid expansion. People, Ideas & Objects believe software has stifled the ability of organizations to change. They cement the organization within the definition and without the capacity to change the software first, the organization remains static. Eliminating any future benefit from specialization and division of labor. People, Ideas & Objects also sees the capacity and capabilities we’ve built into our software development, especially our user community, we’re able to generate value in two material ways. The first is through the decentralized production models price maker strategies ability to instill production discipline across North America. And secondly, change enabled opportunities and capabilities that specialization and the division of labor have for generating value.