Members of the People, Ideas & Objects user community are licensed for a variety of rights and privileges in the development, implementation and operation of the Preliminary Specification. One of these includes the exclusive right to own and operate a service provider that manages an individual process within the Preliminary Specifications software. Service providers will administer and account for North American oil and gas producers through People, Ideas & Objects Cloud Administration & Accounting for Oil & Gas software and services. This will be delivered to producers in conjunction with the roles of our user community members in their service provider organizations. And their exclusive influence on our software developers. Therefore these service providers will be able to innovate and iteratively change their managed processes software and services to keep up with producers' changing needs. 

Cloud Administration & Accounting for Oil & Gas creates a sub-industry in this change. Taking the concept of Cloud Computing and applying it to these processes is appropriate as the same issues, opportunities, cost reductions and efficiency exist and are available through this reorganization. Firstly, service providers make producers' costs variable, based on profitability. Enabling them to shut-in any unprofitable production and ensuring profitability everywhere and always. Service providers are therefore the means to generate the critical elements of the Preliminary Specifications value proposition. Making producer overhead expenses variable. Variable based on profitable production. 

When each producer is tasked with building, maintaining and operating the exact, non-competitive attributes of administrative and accounting capacity and capabilities, on an unshared and unshareable basis. We have the secondary reason for a chronic lack of profitability in the industry. Automation, specialization and the division of labor can more effectively deal with these environments when they are conducted industry-wide.

An operational service provider will manage an individual process on behalf of the North American oil & gas industry. The dimension of the work would be breathtaking in terms of understanding the scope and scale of the work undertaken each month. Without getting into the details of a specific process, and speaking only of the generalities, I want to discuss the scope and scale, and the details of the “what,” “how” and “why” of a service provider in the People, Ideas & Objects Preliminary Specification. 

Managing the entire North American producer population in the process domain would initially be challenging. The approach to the process would be fundamentally different from that currently done by a junior oil & gas company or ExxonMobil. Even they don’t come close to the proposed volume of transactions for a service provider. Therefore the need to design the process within our user community on the basis of this revised organizational method will have been established. This is due to the service provider's early participation in the People, Ideas & Objects user community. Our user communities research will determine the level of specialization and division of labor for the people involved in each process. It will also determine the tasks to be done. Both individually and from a global perspective in terms of application functionality.

Participation in our user community will continue for service provider principals. This is due to People, Ideas & Objects establishing the software development and user community as permanent capabilities in the North American oil & gas industry. Society in general is now defined and supported, but also constrained by software systems, particularly ERP software. Any change in our organizations must be made in software first. As the principal members of the service provider sub-industry our user community will continue to ensure there is the ability to affect the changes necessary through the People, Ideas & Objects software development capability and our user communities' commitment and vision. Feedback from service providers is one of the primary reasons for constant development work on systems and services provided by this sub-industry. To oil & gas producers' enhanced profitability, everywhere and always. 

The method People, Ideas & Objects allocates specific service provider licenses to a specific user community member. The contributions of the user community during the development process will be the determining factor. No one can look through all the submissions and allocate the appropriate license to the right individual. That would be a superhuman task. It is however well within the scope of Artificial Intelligence. The AI algorithm might review the Final Specification and identify the key attributes and contributions made to the system and by whom. It might then be able to look back and determine the first mention of these key contributions and the individual who originated them. It might then review the sum of all users' contributions, compare them with other users and their areas of specific idea generation. Then, apply the known management processes within the Final Specification and award licenses to service providers. We have set aside a budget for the development of this algorithm from the moment People, Ideas & Objects are funded. The user community license provides each user community member with the exclusive right to manage a process domain as a service provider. There may be multiple owners of a service provider and user community members with interests in multiple service providers. Our user community will develop these AI recommendations and algorithms.

It is on the basis of changing the relationship of how the producer accesses their administrative and accounting capabilities that we can enhance North American producers' profitability. This will be done through our decentralized production model based on the Preliminary Specification. This model provides the capability of producers to implement a “price maker” strategy that will be a key competitive capability in this shale-based era. Unprofitable production is shut-in by the producer. Reducing the amount of commodity on the market to ensure its marginal value. At the same time, during a period that production is shut-in, reserves are held for a time when they can be produced profitably. Reserve costs don’t have to cover additional losses. The producer will not incur any production or storage costs as the reserves provide a much lower storage cost alternative. Due to the absence of revenue, royalties, operating costs or overhead costs, the property records a null operation. Producers record the highest corporate profitability when unprofitable properties no longer dilute profitable properties' profits. Profitability is the only fair and reasonable method of production discipline. The lack of overhead costs on shut-in production is a feature of dealing with the administrative and accounting capabilities through these service providers. When the property is shut-in a service provider will receive no data or information from the People, Ideas & Objects task and transfer network. Without data the service provider will not be triggered to perform any tasks. Causing them to not bill that Joint Operating Committee for their services that month, as no services were rendered. Providing producers with a standard and objective accounting that ensures the evaluation of profitability was the same as all other properties.

The task and transfer network is a part of the Preliminary Specification that will be developed in a variety of different modules. Through automated processes, service providers are able to efficiently process the operations of oil & gas producers. The task and transfer network enables process automation and is a key tool set for service providers. Cloud Administration & Accounting for Oil & Gas provides service providers with tools such as automation, specialization, division of labor, standardization, objectivity, and cloud computing. It is the application of these tools, and others, that service providers focus on in providing oil & gas producers with the most profitable means of oil & gas operations. 

It is the service provider that resides at the point of discovery and conflict in the producer's administrative and accounting operations. It is there that they can improve and enhance the process through the substantial toolset at their disposal. Key within that toolset is the People, Ideas & Objects software development capability and service providers' direct participation as user community members. And it is in that way that they can affect real change to ensure that their producer clients are provided with the most profitable means of oil & gas operations. Automation will be invoked at high levels to ensure that the most effective and efficient operations are provided to those producers participating in these developments. Relieving administrative and accounting resources to pursue greater value-added opportunities. Reduction of costs in this sense is a worthwhile pursuit, not from the point of view of itself. Cost reduction requires high automation levels. Automation does not just reduce costs directly it does so indirectly through error reduction. Error reduction reduces time.

Producer officers and directors are well versed in developing viable scapegoats to justify not implementing the Preliminary Specification. One of their most successful arguments is that price maker strategy is collusion. What has been standard business practice in all other industries since the 1930s depression is considered collusion? The results of each property's operations for the month are presented to the producer in a complete set of actual, factual financial statements. This is enabled by the fact that service providers will charge their costs of administration and accounting directly to the Joint Operating Committee. Monthly allocations for depletion based on oil & gas needs to compete on today's capital markets. Determine which properties are profitable and make the decision to shut-in any unprofitable ones. This is not collusion, but business. Why would anyone in any industry continue to produce unprofitable assets? To refute the claims made in the Preliminary Specification producers have come up with many excuses and reasons why they can’t, won’t and will not ever proceed with the development, implementation and reorganization of the North American oil & gas industry on the basis of profitability everywhere and always. The destruction they've caused is now permanent. The rest of the global industry is active in 2022, but North American producers seem to be overlooked.

I raise this point as many of their arguments on the details regarding the Preliminary Specification might be valid if we did not consider them. Their arguments are specious on their face and in theory could provide them with an endless supply of reasons not to do anything. This seems to form part of their overall “do nothing” business model. The Preliminary Specification is derivative of the research I conducted and the experience I gained working in oil & gas. No one in the world has the wherewithal to make a pencil. The same I would assume is the case in oil & gas. This is why we rely on user community-based development, with our service providers being the essence of each service. The same pencil analogy applies to each user community member, however collectively we aim to cover the full spectrum of producers' administration and accounting needs with broad industry input. We’re offering the solution to the problem we’ve identified as a lack of a dynamic, innovative, accountable and profitable North American oil & gas industry. When producers fund People, Ideas & Objects, they'll be motivated to participate by putting some skin in the game. And therefore prove to their shareholders and bankers that profitability is critical to the industry. Then ensure that the efforts they make are what are needed to resolve oil & gas exploration & production related issues and opportunities. We are developing the Preliminary Specification, not a remake of the failed culture we see today. So producers must bring us their issues, not their solutions. 

We’ve seen this behavior throughout the producer population these past four decades in how they’ve worked with the service industry. Sitting high atop the industry on Caesar's throne and decreeing those with a simple thumbs up or down gesture. However when people bring solutions to problems in producers' business it might be a better approach to show them the respect they deserve. This will enable them to see what they have. Share the producers' concerns and work together to resolve them. In an innovative industry the final solution is rarely found on the first iteration. It demands work, and most of all the difficult work of solving problems that others are doing. It also brings others into contact with the issues and opportunities they see in producers' business. To continually cast them aside with a thumbs down is the kind of treatment producers will eventually receive in 2022. When the industry is profitable, perhaps, but they are offered nothing. Investors today only believe in dividend checks from producers. This will demand efforts and financial commitments from producers and the belief in the status quo is unjustified for producers. 

Calling service providers a sub-industry of the oil & gas industry is appropriate based on their scope and scale. Replacing industries' administrative and accounting capabilities within each producer involves many individuals. And in terms of costs it is estimated that producers annually incur over $10 billion in G&A costs across North America. This amount would be reallocated as revenues to the service providers. A significant change in the oil & gas industry. Incremental value is generated based on service providers' ability to exercise real economic growth through automation, specialization and division of labor. Providing enhanced performance throughput from the same $10+ billion in G&A costs. And unquantifiable savings as a result of building and sharing the costs of one non-competitive attribute of the industry based, variable cost, administrative and accounting capability and capacity instead of each producer involved in providing their own unshared and unshareable capability in-house.

Arguments against this change are self-serving in nature. Suggesting People, Ideas & Objects software and services scope and scale is too broad. However, the scope is well within the producers internal domain of what they can provide? Through the compliance requirements of government agencies, the sophistication of society and the needs of oil & gas producers and partners? Can individual producers manage this within their limited IT budgets?

The redundant, unshared and unshareable building of administrative and accounting requirements of an oil & gas producer is the secondary cause of the lack of real profitability in the oil & gas industry. They were instrumental in eliminating small, start-up oil and gas producers from commercial operations long ago. Producers succeed because of their capital raising capacity, not their geological or engineering capabilities. We’re not far from the point where these demands on all producers exceed reasonable overhead costs. The high throughput production model, the business model the industry is structured under, demands producers to produce at capacity at all times. This is to cover their fixed overheads. Production at capacity has led to commodity price collapses since the first oil price collapse in July 1986. These collapses are creating systemic losses that will lead to the industry's demise soon. Why do they destroy commodity prices to cover overhead if overhead is not a material issue?

The lighter weight of producer organizations under the Preliminary Specification enables them to be dynamic, innovative, accountable, and profitable. Having the administrative and accounting handled by the service providers has left the C Suite executives, the engineering and earth science resources of the producer firm. Further, some legal and support staff remain. With this smaller footprint, no matter the size of the production profile, the producer firm can focus on their key competitive advantages of their land & asset base. In addition, they can coordinate the market's earth science & engineering capabilities. Having state of the art administrative and accounting service providers is what they’ll have on a variable service fee basis. Variable based on profitable production. Accessing this industry-wide Cloud Administration & Accounting for Oil & Gas capability will free each individual producer from the onerous and costly tasks of building the unshared and unshareable administrative and accounting capabilities they've created in-house. 

This will enable producers to focus on their business of generating value for shareholders. Why we need to focus on generating value and profitability for shareholders should be evident to everyone now that we've witnessed the performance of the status quo establishment's interpretation of what is priority and the devastated North American oil & gas landscape that remains. 

This Cloud Administrative & Accounting for Oil & Gas capability will accommodate producers' changes. Through user community participation and the People, Ideas & Objects software development capabilities the service provider can enable change in the software and processes. This will increase a producer's productivity and throughput. Changes made within the oil & gas producer itself, and changes that enhance key competitive capabilities of the service provider. Will enable further specialization and division of labor within the earth science & engineering disciplines. Something we suggest is necessary to address these critical resource shortfalls over the long term. 

The world is a dangerous place to live not because of the people who are evil but because of the people who don’t do anything about it. 

Albert Einstein 

People, Ideas & Objects are undertaking a comprehensive project. That we would aspire to accomplish this in the normal course would be unheard of. I don’t believe we’re in an environment where we’re anywhere near normal and what is accepted as normal today is unacceptable. Producers have serious consequences such as Houston can barely decide which business to focus on. They were once the center of the global oil & gas industry. It's difficult to determine how they fit in today.

Now is the time to act. Time has been wasted and there are consequences of actions and inactions by good people that have much broader implications than we realize when they occur. As much as I belittle the status quo it’s obvious to everyone that inaction is in their DNA. We can't and shouldn't expect anything from them. They’ll continue to deny People, Ideas & Objects development resources. However that is not a reason to sit and watch this tumble further downwards. There should be no doubt about the need to rebuild the industry in my opinion. It will be far easier to rebuild than to compromise and deal with today’s failed organizations. Compromising would only provide something that doesn't work. 

I have defined the market for our user community and their service provider organizations to fall within the domain of North American oil & gas administration and accounting roles and responsibilities. Our objective is to provide the dynamic, innovative, accountable and profitable oil & gas producers with the most profitable means of oil & gas operations, everywhere and always. Among the areas covered by service providers are operational, exploration, land, IT, and traditional administration. And of course the accounting and regulatory processes associated with these. This is a data rich environment and the need to capture these in an ERP system is paramount. Today’s process of feeding multiple systems with the same data is due to the fact that these systems bridge different domains and conflict between the various empires of the producer which is one of the key impediments to the lack of integration in the current systems. Our user community understands these.

Oracle CloudWorld 2022 Conference

People, Ideas & Objects, our user community and their service provider organizations focus on the North American oil & gas producer marketplace. We have developed significant value through disintermediation and innovative business models. Covering the scope of what oil & gas producers demand in North America. Oracle Cloud ERP provides a solid foundation for tier 1 ERP, which provides generic business process management. What our service providers are implementing is a microservices architecture which we won’t define here other than to say it is consistent with Oracle's overall product offerings. During 2022s Oracle CloudWorld conference it became clear that similar perspectives regarding the introduction of service providers have been adopted by Oracle. They now apply these perspectives to generic business processes. Just as People, Ideas & Objects have a number of interfaces in the Preliminary Specification entitled “Gap Filling," Oracle is now filling gaps within their generic business processes with a variety of service providers offering services with Oracle’s software. As a result, these generic business processes create significant value for dynamic, innovative, accountable, and profitable oil and gas producers. 

One example used at the Oracle CloudWorld 2022 conference was the agreement between Oracle and J.P. Morgan Chase. Where the bank's credit card can be used in conjunction with Oracle Cloud ERP to process employees' business related charges on the basis of policies that determine if the cost incurred is eligible for reimbursement or not. If eligible, Oracle processes the employees' expense report based on the eligible charges for the month. It files it based on company policies. It charges the employee for any unauthorized charges, pays the credit card, and posts the costs to the general ledger. Taking just milliseconds to file company-wide expense reports. As a result, thousands of man hours will be saved from filing, approving, recording and paying these for each employee. This applies to even the smallest of firms. These types of service providers are now being actively developed by Oracle and will enhance the dynamic, innovative, accountable and profitable oil & gas producer on these generic business processes in the same way that People, Ideas & Objects our user community and most particularly their service provider organizations have been designed to do for oil & gas processes. 

An additional clarification of the distribution of oil & gas service providers is that we’re providing software and services to all of the oil & gas production produced in North America. Whether that is from Exxon or a startup it will not concern us. Just as it would not concern Oracle or J.P. Morgan Chase as to the size of the firm using their credit card or Oracle Cloud ERP software. 

Gap filling is the means of specialization and labor division. When a market gap exists, an entrepreneur can provide a product or service to fill that gap. This will increase society's productivity. Today's advanced society is constrained by software development capabilities. The ability to fill gaps is the appropriate role for our user community, their service providers, and our software developers. One of the inherent benefits of this codification of oil & gas and Oracle’s generic business process management within Oracle Cloud ERP is that these processes become standardized and objective. The firm's policies regarding expense report eligibility is clearly understood by employees. Employees will be responsible for any unauthorized costs based on that knowledge. Our user community and service provider organizations will deal with the full scope of oil and gas producers' properties through People, Ideas & Objects. When the property is determined through actual, factual accounting data that it is incurring a loss, the producers owning that property will know that property was assessed on the same standard and objective basis that all other properties were in North America. They will therefore be able to decide to shut-in that property with the clear understanding that they’ll enhance their corporate profits by not diluting them from that specific property's losses, in addition to the many other benefits we’ve noted in the Preliminary Specification.

Another attribute discussed at the Oracle CloudWorld conference that benefits the oil & gas industry is the large Oracle community that exists and is growing through these initiatives. Oracle Cloud ERP is one of three tier 1 ERP solutions and is considered the premier system in many evaluations. Sales of their product have accelerated in recent years. The installed base of users and service providers in that marketplace will benefit oil & gas producers and all those associated with People, Ideas & Objects. We are not reinventing the wheel. We are applying the appropriate tools that have been tried and tested across other industries and throughout the globe that have built value. We are becoming part of a much larger user community and service provider population. There are substantial benefits to being a dynamic, innovative, accountable and profitable oil and gas producer as a result. Safra Catz the CEO of Oracle was quoted as saying.

• Bold is the winning strategy.

• Moving slowly is dangerous.

• Innovation is scary but not risky.

• Oracle focuses on its customers.

• Culture and performance move together. 

Sentiment that matches our user community. 

People, Ideas & Objects, our user community and their service providers are employing what is now commonly referred to as a Software as a Service (SaaS) style of offering to the North American oil & gas industry in this Cloud Administration & Accounting for Oil & Gas and the implications of that are broad. The following are areas of concern under the SaaS delivery model. And give a brief overview of how the specific user community and their service provider organizations will be involved in the development of the Preliminary Specification and how they will support producers within this model. Starting at the bottom and working our way up, we will break down these services. The following diagram shows from a systems and services perspective what this consists of and who will address these areas of concern. These areas are traditionally considered Information Technology domains. What People, Ideas & Objects consider to fall under the administrative role in the administration and accounting of our user community and their service provider organizations. From the book “IaaS for Dummies” page 8, John Wiley and Sons.

Please review the image at the bottom of this page.

Data Centers, Networking, Storage and Servers

These form part of the Oracle Cloud ERP offering and are supported by their regions around the world. We have discussed briefly the method of incorporating the Preliminary Specification into the Oracle Cloud ERP offering. We will state that at this point we are implementing Oracle’s recommended method. We write our Java application within the Oracle Fusion code itself through the Oracle Fusion Middleware Server. It will not be a series of separate modules that sit on top of Oracle Cloud ERP which has been the traditional approach. It is in this way that either People, Ideas & Objects or Oracle may update their respective code bases on their currently scheduled quarterly release. This is without impacting another's code. Java inheritance, polymorphism, and most importantly, encapsulation. 

These four base elements of a SaaS are determined by Oracle Cloud ERP user. Select the data center, processor, storage type and all configurations available. People, Ideas & Objects employ a microservices architecture that maps the service provider's single administrative or accounting process to the domain of concern. Specialization and division of labor do not foresee service providers handling the accounting associated with an individual process as well as IT related SaaS roles. These are mutually exclusive capacities and capabilities. There will be other members of our user community with their own service provider organizations that manage elements of the SaaS offering on behalf of the population of other service providers. 

Hyperspecialization demands that these types of service providers be created to support the community of service providers in IT and other areas of specialized needs. What is also demanded in this overall community are service providers that coordinate the output of other service providers and deliver additional services. Consider for example how the month-long process, level of detail and broad scope of the Material Balance Report must come together. 

Virtualization

Within the Oracle Cloud ERP offering there is a registry service for the various images that we will have developed and published and those that Oracle has published. The service provider may use these for managing or deploying "month-end" processes, etc., as needed. Virtualization is a way of life in the cloud. It is evolving at a remarkable pace with future configurations and architectures of systems being derivatives of these technologies in some form or another. The core of Oracle Cloud ERP, including the modules in the Preliminary Specification, will be run on centralized servers in a more traditional sense. This is where microservices access their data and defer heavy processing. 

Operating System, Middleware, Runtime, Data and Applications

This software stack will have a myriad of configurations contained within the virtualization registry. Whatever the process needs to operate will remain in the image. Operating systems, databases and other components are removed to create a lightweight configuration solely for that one process. There will also be a main server configuration where Oracle Cloud ERP and People, Ideas & Objects Preliminary Specifications core applications will be operational at all times. Service providers will deploy virtualized images of what they need when needed. Using machine learning technologies, Oracle is able to automate its Linux operating system and database. By reviewing the database logs, changes can be made to the configuration and tune the database as necessary without human intervention. The work of our user communities service provider organizations that are administrators of the database will no longer need to concern themselves with table size growth as the automated database will drop tables when required, etc. It is here where our service providers and their ownership by the user community will be able to make the significant impact that the Preliminary Specification provides. The motivation behind the user community is that they’re business people who are building their own business based on serving the producer population. This is to ensure profitable oil and gas operations everywhere and always. They’ll have the motivation, the tools by way of access to the Preliminary Specifications Intellectual Property and our developers, but also exclusive access and attention to the producer firms in order to determine what is the best method to meet their objective of real profitability everywhere and always and how to rebuild their business in this vision.