People, Ideas & Objects is revitalizing the oil & gas industry by reintroducing a modified Profitable Production Rights Licensing method. This approach not only funds the development of the Preliminary Specification and nurtures our user community but also grants licensees the dual opportunity to engage in the North American oil & gas sector and its ERP software markets. In today's era, every business is becoming a software business, making participation in our ecosystem essential. I’ll restate here why participation in People, Ideas & Objects et al is valuable in the 21st century. It’s no longer enough to just own the oil & gas asset, it’s also necessary to have access to the ERP software and services of People, Ideas & Objects et al’s Cloud Administration & Accounting for Oil & Gas that makes all oil & gas assets profitable.
The transition of producer officers and directors towards clean energy and consolidation, coupled with their historical dismissal of shale's commercial viability, highlights a disregard for the oil & gas sector they once managed. This has led to a culture resistant to change, lacking in accountability and transparency, and neglectful of real profitability. Our 2023 / 2024 focus on the LNG issue has illuminated over $4 trillion in lost revenue since July 2007, a testament to the officers and directors willful misconduct.
The North American producer is portrayed as a failing organization, risking societal jeopardy with its inability to sustain shale production. The industry's operational, financial, and political challenges call for innovation and entrepreneurship—qualities the status quo lacks. As Edmund Burke suggests, technology represents a dynamic counterforce to stagnation and tyranny, offering a path towards innovation and change.
Despite the transformative potential of shale technologies since the 2008 financial crisis, the industry has failed to capitalize on this value. The status quo has led to distorted business practices and value destruction, underscoring the necessity for a new approach. People, Ideas & Objects stands as the sole alternative to outdated methods, offering a solution that ensures dynamic, innovative, accountable and profitable North American energy independence.
Our Profitable Production Rights Licensing provides the keys to accessing a new model of oil & gas organization—one that prioritizes dynamic, innovative, accountable and profitable oil & gas production, everywhere and always. As the industry faces its future, the choice between embracing this new path or clinging to the status quo will determine its trajectory. People, Ideas & Objects invites everyone to join us in building a future where oil & gas remains a cornerstone of North America's economic prosperity.
In terms of implementation, our objective is to encode each Profitable Production Rights License onto a dedicated blockchain, specifically secured through Oracle Cloud Infrastructure and the Oracle Autonomous Database. This capability is made possible by the recent introduction of the Oracle Blockchain Table. Within the context of the Preliminary Specification, this Oracle database will oversee the administration of Profitable Production Rights Licenses, effectively managing the contracts of rights holders. Consequently, this enables contracted licensees to access People, Ideas & Objects software and services, while also overseeing and managing their revenue and expenses.
Should any assignments, sub-leases, or transfers of the Profitable Production Rights License occur, these actions will not alter or remove the original purchaser's transaction in the database. Instead, they will generate an additional block on the chain or a new row within the Oracle Blockchain database instance. Profitable Production Rights Licenses are organized via their serial numbers to collate all related transactions, assignments, current ownership details, and the licensing of production rights to the respective producing Joint Operating Committee.
The licensee of the Profitable Production Right will maintain ownership and control over the encryption key necessary to access the record database. This database archives the production contracts executed with producers, who are invoiced based on the terms of the Profitable Production Rights Licensees' contracts. The licensing structure grants exclusive access rights, positioning it as a unique solution for organizing North American oil & gas exploration, production, administration, and accounting in a profitable manner.
Oracle's Blockchain Tables are specifically designed as append-only tables to support centralized blockchain applications. Within this framework, peers are identified as database users who rely on the database's integrity to preserve a tamper-resistant ledger. This ledger, implemented via a blockchain table, is both defined and managed by the application, allowing existing applications to safeguard against fraud without the need for a new infrastructure or programming paradigm. Although the transaction throughput for a blockchain table is lower than that of a standard table, its performance is notably superior to that of a decentralized blockchain system.
It is essential to acknowledge that Oracle's Blockchain Database does not represent a pure blockchain implementation, as it does not distribute its blockchain across servers for validation in the case of suspicious transactions. Instead, its design prioritizes higher transactional performance, a critical requirement for our applications. Managed by the Oracle Autonomous Database, it serves as a crucial component of our Cloud Administration & Accounting for the Oil & Gas Software & Service, ensuring data immutability—a fundamental blockchain feature. This system guarantees that Profitable Production Rights Licensees have secure rights, necessitating that North American oil & gas producers obtain sufficient licenses to access our Cloud Administration & Accounting Software & Services for the entirety of their production profile. People, Ideas & Objects is confident that this solution will provide an unmatched competitive advantage in profitably organizing producers.
Oil & gas production inherently comes with its unpredictability. This is particularly true for fields experiencing decline, with shale regions showing notable variability. The global market demand has witnessed significant fluctuations, as evidenced by a 25% decrease in worldwide consumption during the COVID pandemic. Although such a steep decline might be rare, it establishes a critical baseline for analysis. This situation is further complicated by the decentralized production models and the price maker strategy introduced by the Preliminary Specification, potentially leading to greater and less predictable variations in a producers production volumes.
Addressing these challenges necessitates a robust mechanism to manage the financial implications of production variability, especially considering the fixed overhead costs associated with Profitable Production Rights Licenses—predominantly those related to Oracle software licenses for Cloud Administration & Accounting for Oil & Gas software and services.
To mitigate these challenges, People, Ideas & Objects have introduced two distinct categories of Profitable Production Rights. The first category has already been described as the Profitable Production Rights. The second, the Flexible Profitable Production Rights License, is designed to account for up to 25% of the total production profile of the continent or the subscriber base of People, Ideas & Objects, whichever is lower. This allocation is intended to buffer against up to 25% of production variability across all operations. Each producing property is automatically allocated 25% of the Flexible Profitable Production Rights License to compensate for any potential production decline, thereby indemnifying Profitable Production Rights License owners against the financial risks posed by variable production volumes of a Joint Operating Committees production.
In scenarios of extreme production declines, as observed in the past decade, or when production is halted due to unprofitability—a situation expected to represent a small fraction of North America's total output—the Flexible Profitable Production Rights License comes into play. It covers the revenue loss for any shut-in production, assuming the property is being reworked to resume production, aligning with the core objectives of the Preliminary Specification. Should production become indefinitely suspended or abandoned, Profitable Production Rights Licensees are freed to seek new production opportunities, provided North America's production deliverability remains above 75% of the established baseline volume for the continent. In such cases, revenue impacts would be borne by Flexible Profitable Production Rights Licensees, not the standard Profitable Production Rights Licensees.
The pricing strategy for the Flexible Profitable Production Rights License does not undervalue it compared to the standard Profitable Production Rights License. By People, Ideas & Objects acquiring all Flexible Profitable Production Rights Licenses this will redistribute the margins generated through People, Ideas & Objects to those shut-in areas. Therefore allocating 25% of the overall production profile in consideration for 100% of the Flexible Profitable Production Rights Licenses. Thereby purchasing the Flexible Profitable Production Rights in exchange for 40% of the budgeted earnings of People, Ideas & Objects. Holding all Flexible Profitable Production Rights Licenses is expected to strengthen our negotiating position when leasing these licenses to producer firms that require coverage for a quarter of their total production. Negotiations for Flexible Profitable Production Rights will begin once all Profitable Production Rights have been fully allocated to each Joint Operating Committee.
Therefore to summarize the configuration of Profitable and Flexible Profitable Production Rights.
The strategy outlined for the Flexible Profitable Production Rights License within the context of People, Ideas & Objects (PIO) involves a nuanced approach to pricing and redistribution of value within the oil & gas sector, specifically targeting areas of production that are currently shut-in or underutilized. This approach does not undervalue the Flexible Profitable Production Rights License in comparison to the standard Profitable Production Rights License. Instead, it aims to leverage these flexible rights to enhance the overall production profile and financial health of the involved entities, particularly Profitable Production Rights Licensees through strategic negotiations and allocations.
1. Acquisition of All Flexible Profitable Production Rights Licenses by People, Ideas & Objects: By acquiring all Flexible Profitable Production Rights Licenses, People, Ideas & Objects positions itself as a central figure in the redistribution of margins to shut-in areas. This action underlines the intent to revitalize these areas by ensuring that they can contribute to and benefit from the broader production and profit mechanisms within the industry.
2. Redistribution Mechanism: Allocating 25% of the overall production profile in exchange for 100% of the Flexible Profitable Production Rights Licenses signifies a strategic redistribution of resources and opportunities. It effectively means that a quarter of the total production capacity is considered in the valuation and acquisition of these flexible rights, aiming to balance the scales between different production potentials and needs within the industry.
3. Financial Arrangements: The decision to exchange these rights for 40% of the budgeted earnings of People, Ideas & Objects highlights a significant purchase in the potential of these shut-in areas. It reflects a confidence that the activation and utilization of these areas will not only be profitable but also contribute substantially to the overall earnings and operational success of People, Ideas & Objects.
4. Strengthening Negotiation Positions: Holding all Flexible Profitable Production Rights Licenses enhances People, Ideas & Objects ability to negotiate with producer firms that need to cover a significant portion of their production. This strategic position allows People, Ideas & Objects to dictate terms that are favorable and ensure that the licensing of these rights contributes positively to its objectives and the wider industry's health.
5. Allocation and Negotiation Process: The strategy indicates a phased approach, beginning with the full allocation of Profitable Production Rights to each Joint Operating Committee before initiating negotiations for Flexible Profitable Production Rights. This sequence ensures that the foundational elements of production rights and responsibilities are established, allowing for a more focused and effective negotiation on the flexible aspects.
The narrative provided outlines an innovative approach introduced by People, Ideas & Objects aimed at transforming the operational and financial frameworks within the oil & gas industry. This transformation pivots around the concept of Profitable Production Rights Licenses, which serve as the cornerstone of People, Ideas & Objects strategy to overhaul how the industry functions, particularly in addressing the inefficiencies and value destruction perpetuated by current management practices.
This strategy is the exclusive access granted to licensees of Flexible and Profitable Production Rights to the Cloud Administration & Accounting for Oil & Gas Software & Services. This exclusivity is pivotal, ensuring that the revolutionary services developed under the Preliminary Specification are reserved for those holding the appropriate licenses. It's a model that not only underscores the value of these licenses but also sets a clear boundary for access to innovative operational capabilities. Each license is designed to enable the profitable processing of one barrel of oil equivalent (BOE) per day, marking a significant step towards more efficient and profitable operations.
An interesting aspect of this strategy is the anticipation of a development phase, a period characterized by the absence of financial transactions, both in terms of revenues and expenses, for the licensees. Despite this, licensees are encouraged to engage with producers early on to secure production rights, laying the groundwork for operations ahead of the commercial launch of Cloud Administration & Accounting for Oil & Gas Software & Services. This proactive approach is indicative of the strategic foresight embedded in People, Ideas & Objects model.
The revenue model proposed is another key element, with Profitable Production Rights Licensees generating income by levying fees on producers for the processing of their BOE through the platform. The flexibility granted to rights holders in structuring these fees allows for diverse and potentially innovative business models to emerge, tailored to the specific dynamics of the engagements between licensees and producers.
PIO's critique of current industry practices forms a critical backdrop to its strategy. The critique is sharp and comprehensive, pointing to a systemic failure to create value, manage capital structures effectively, and compete for capital since the initial oil price collapse of 1986. Through this lens, People, Ideas & Objects highlights the vast potential for transformation in the industry, underscored by the identification of a $4 trillion revenue loss in the natural gas sector from July 2007 to the end of 2023—a stark reminder of the opportunities missed under current operational paradigms. And a source of value in the Profitable Production Rights Holders offering to producer firms.
In response to these challenges, People, Ideas & Objects presents its value proposition as a beacon of change. By leveraging the Preliminary Specification, People, Ideas & Objects envisions an industry that is not only more dynamic, innovative, and accountable but also significantly more profitable. This vision extends across the full spectrum of oil & gas operations, from exploration and production to administration and accounting, offering a comprehensive blueprint for transforming all producers from the startup to integrated multinationals.
In essence, People, Ideas & Objects strategy represents a bold step forward in reimagining the oil & gas industry. By placing Profitable Production Rights Licenses at the core of its approach, People, Ideas & Objects aims to catalyze a shift towards preservation, performance and profitable operations. This strategy challenges the status quo, proposing a future where the industry not only recovers from its historical inefficiencies but also positions itself as a competitive and financially robust sector, capable of attracting and managing capital with unprecedented efficacy.
The innovative approach introduced by People, Ideas & Objects through the Profitable Production Right License represents a significant shift in the oil & gas industry's operational and financial paradigms. The essence of this shift lies in leveraging advanced technological solutions and strategic pricing models to enhance profitability and operational efficiency. This model meticulously balances the integration of technological advancements with pragmatic financial strategies, aiming to redefine the industry's standards for profit generation and resource management.
The core of the revenue generation mechanism under the Profitable Production Right License is a sophisticated negotiation process. This process aims to establish a share of the present value of the differential, which effectively compares the value proposition offered by People, Ideas & Objects and its associated technological and service advancements against the industry's status quo. The outcome of these negotiations, which will be uniquely tailored to each agreement between the Profitable Production Right Licensee and the producer firm, determines the revenue potentials. Such contracts are managed using the Oracle Blockchain database, ensuring transparency and efficiency in handling each specific barrel of oil equivalent (BOE).
A proposed revenue model suggests linking the licensees' earnings to a percentage of the oil & gas commodity price, with a discussion range between 5% and 10%. This range is designed to capture a significant portion of the pretax profitability of commercial operations, ensuring that producer operations remain profitable under the Preliminary Specification. The rationale is to establish commodity prices that are not only marginal but are elevated to a level that secures profitability. This approach addresses a long-standing indifference from current producers towards optimizing profitability, thus presenting a cost that future producers would consider essential for determining their profitability.
The pricing structure of the Profitable Production Right License, set at $1,000 U.S. per BOE, is reflective of the current North American production profile and accounts for the inclusivity of heavy oil production within the People, Ideas & Objects budget. The model acknowledges the unique operational dynamics of heavy oil producers, including their existing ERP systems, while still positioning them as direct beneficiaries of the price maker strategy advocated by People, Ideas & Objects.
Addressing the operational costs associated with the Preliminary Specification, the long-term maintenance of software development and community support is deemed non-material relative to the gross revenues of producers. An analysis comparing the development costs of the Preliminary Specification against the gross revenues of producers in 2021 illustrates that the operational and incremental software development costs post-commercial release are sustainable, amounting to a modest percentage of a single year's oil & gas revenues.
The financial strategy extends to encompassing the overhead costs within a manageable framework for both Flexible and Profitable Production Rights License owners, translating into an all-in cost that reflects these long-term support and development costs. This model ensures that the Profitable Production Rights Licenses do not adversely impact the service providers' fee structures or billing practices, yet indirectly influences the producers' access to service providers through the softwares access rights.
The foundational principle of the Profitable Production Right License is its role as a contract granting producers access to a suite of organizational capabilities aimed at securing profitable production. This right, inherently reconfigurable, detaches the risks typically associated with oil & gas property ownership, providing a transferable, assignable, and leasable avenue for operational flexibility.
Today’s producers' tactical management approach includes everything that comes into their minds. In the past few years we’ve seen $25 million in executive bonuses paid by Chesapeake the week prior to its bankruptcy declaration. It appears that bankruptcy is the means to deal with shareholders who have become too dissatisfied with management performance and is how producers can reshuffle the deck as it were. Profitable Production Rights Licenses circumvent these actions by having a clause that terminates the Profitable Production Rights License upon bankruptcy. Therefore freeing up the rights and maintaining value in the hands of the rights owner. Endorsing the purpose of Profitable Production Rights by separating ownership of oil & gas production from the right to process that production. This is done through organizations represented by Cloud Administration & Accounting for Oil & Gas. The Licensees could then engage bankruptcy trustees to reinstate the Profitable Production Rights License. This would be on terms that maintain independent ownership of the Profitable Production Rights License separate and distinct from the means of production.
Answering the who and why would be interested in acquiring Profitable Production Rights outlines a comprehensive strategy aimed at revolutionizing the oil & gas industry. Through the development of People, Ideas & Objects Preliminary Specification, and building of the Cloud Administration & Accounting for Oil & Gas software and services. This approach is designed to address the industry's long standing challenges with preservation, performance and profitability. Marking a decisive shift from traditional practices that have proven ineffective and unpopular among producers investors and stakeholders. Here’s a breakdown of the key elements and their significance:
Introduction of Profitable Production Rights License: A core component of the strategy is to incentivize various stakeholders within the industry to adopt new practices that ensure profitability and sustainability. This involves shifting from traditional methods of operation to more innovative and accountable approaches, facilitated by the Profitable Production Rights License. This license serves not only as a revenue generation tool for People, Ideas & Objects but also as a catalyst for industry-wide change.
Investors:
Engagement Strategy: Highlight the disillusionment investors have with past industry practices. Our strategy aims to re-engage them by offering a license in a dynamic, innovative, accountable, and profitable oil & gas producer.
Value Proposition: Provide a direct, persistent royalty share in oil & gas production, showcasing a shift towards transparency and profitability.
Oil & Gas Employees:
Risk Mitigation: Acknowledge the risks faced by individuals supporting industry transformation.
Future Promise: Emphasize confidentiality and the potential for a safer, more rewarding future in a transformed industry.
Service Industry Representatives:
Stability Advocacy: Address the boom/bust cycle and advocate for a more stable and trustworthy relationship between producers and the service industry.
Trust Rebuilding: Focus on rebuilding trust and ensuring mutual profitability, emphasizing long-term partnerships.
Producers (North American and Worldwide):
Direct Purchase Incentive: Encourage direct purchase of North American Profitable Production Rights Licenses.
Cultural Shift: Promote a culture of preservation, performance, and profitability across the industry through our approach.
Our user community and their service provider organizations:
Participation and Motivation: Reflect their motivation for profitability everywhere and always by participating in these software developments.
Incremental Value-Add: Offer a Profitable Production Rights License that provides incremental value-add, enhancing their role in the industry.
Direct Participation: Highlight the attractiveness of direct participation in the production process as an incremental form of value for those within the oil & gas community.
Disintermediation through Information Technology: Leveraging IT to streamline operations, reduce inefficiencies, and foster a more direct connection between production and profit.
Organizational Constructs to support a Cultural Shift: Proposing a reimagined structure for the industry that emphasizes dynamic, innovative, accountable, and profitable producers. Advocating for a wholesale cultural change within the industry to embrace new ways of working that prioritize profitability and sustainability.
Collaborative Effort: Recognizing the need for a collective industry effort to overcome the challenges and risks associated with transitioning to new operational models.
The strategy outlined is ambitious and seeks to address the multifaceted challenges facing the oil & gas industry by fundamentally rethinking how it operates. By focusing on innovation, accountability, and sustainability, and by engaging a broad spectrum of stakeholders through the Profitable Production Rights License, the approach aims to transform the industry into a more profitable, sustainable, and innovative sector. This transformation is not only necessary for the industry's survival but also for its ability to compete and thrive in a global market that increasingly values these attributes.
People, Ideas & Objects now hold commercial rights to Paul Cox’s Intellectual Property, marking a significant issue for the traditional officers and directors in the oil & gas sector. Historically, these stakeholders have neither accepted nor recognized IP, fearing that doing so would conflict with their established protocols and operational methods. Intellectual Property safeguards the software within Cloud Administration & Accounting for Oil & Gas, securing its value proposition and, consequently, its asset value. This protection enables us to generate development and maintenance revenue by creating Profitable Production Rights License products, thus preserving their inherent value.
People, Ideas & Objects and the status quo aim to secure commercially what rightfully belongs to People, Ideas & Objects' value as represented in the Intellectual Property developed in the Preliminary Specification and beyond. We leverage this value to drive productive change in the industry and challenge the status quo. The traditional powers seek to halt this progress to preserve their dominance for another generation, hourly compensating those who contribute to their cause, thereby keeping a critical aspect of the industry's future under their control. We have chosen a different path to ensure the health and prosperity of the oil & gas industry.
In this vein, People, Ideas & Objects poses critical questions: Will a dynamic and innovative oil & gas industry emerge without the contributions of those individuals dedicated to solving complex scientific and business challenges? Moreover, will these problem-solvers commit their time, resources, and effort without the safeguards provided by Intellectual Property Laws? These questions underscore the indispensable nature of IP protection in motivating innovators to push the boundaries of what is possible in the oil & gas sector.
This software infrastructure is a primary concern for the Profitable Production Rights Licensee, aiming to secure leverage for their value proposition. It is entirely derived from People, Ideas & Objects and its licensed Intellectual Property. Intellectual Property is a key construct among the seven Organizational Constructs outlined in the Preliminary Specifications. We invite readers to review this section to grasp IP's significance in our community and the broader oil & gas industry.
The prevailing mindset among producers' officers and directors, and the broader commercial marketplace, is that commercial software applications like the Preliminary Specification should be accessible via published Application Programming Interfaces (APIs). The preference for open-source software, due to its expansive community and low cost, allows for creative and innovative enhancements to software through these APIs. This approach seems to offer an improved method of software delivery. However, it's crucial to understand the underlying motivations for this architecture choice and to compare it with People, Ideas & Objects’ strategy of using private APIs for proprietary software, which is accessible only within our licensed domain.
Publicly publishing an API as desired by the status quo would breach the terms of our user community provisions. Our licensing agreement grants users the rights to uphold, secure, and create derivative works. Consequently, publishing an API would enable producer firms to access software code without compensation, undermining the value proposition of the underlying Intellectual Property. This issue came to the forefront on May 6, 2021, when the United States Supreme Court ruled in favor of Google against Oracle, regarding the unauthorized use of the Java Programming Language. The Court determined that using a published API constituted “fair use” and did not violate Oracle’s copyright.
Despite this, producers are still willing to pay for software development conducted by "blind sleepwalking agents," as long as it serves their interests. This situation highlights the contrasting motivations and arguments surrounding this legal nuance. People, Ideas & Objects and the status quo aim to secure commercially what rightfully belongs to People, Ideas & Objects' value as represented in the Intellectual Property developed in the Preliminary Specification and beyond. We leverage this value to drive productive change in the industry and challenge the status quo. The traditional powers seek to halt this progress to preserve their dominance for another generation, compensating those who contribute to their cause, thereby keeping a critical aspect of the industry's future under their control. We have chosen a different path to ensure the health and prosperity of the oil & gas industry.
People, Ideas & Objects ask what benefit will oil & gas producers gain from the ownership of ERP softwares Intellectual Property? Their distinct competitive advantages fall under their land & asset base and their earth science & engineering capacities & capabilities. It is the application and coordination of these towards their asset base that will generate the value and profitability for the producer firm. ERP Intellectual Property will continue to be distractions if producer officers and directors continue to seek them. At the same time IP is critical to the structure and means of an effective ERP marketplace.
Potential Profitable Production Rights Licensees should note that my holdings are evenly distributed between Intellectual Property royalties, People, Ideas & Objects earnings, and fees from producers through the Flexible Profitable Production Rights Licenses I possess. I’m all in to ensure I benefit from a profitable and prosperous North American oil & gas industry as a result.
Absolutely, and we embrace this label with pride. Our approach has avoided locking ourselves into rigid solutions that might later require expensive software redevelopments. This strategy has allowed us to remain agile and financially autonomous, focusing squarely on the pressing matters at hand. As the oil & gas ERP provider that has faced financial neglect, criticism, and outright vilification, People, Ideas & Objects stands resilient. Despite the heavy criticism from entrenched interests within the industry, we continue to present the sole viable solution to the existential and organizational challenges facing the sector.
Embracing the concept of vaporware to its fullest, we've focused primarily on nurturing our user community since 2014, a meticulous and time-intensive endeavor. The Preliminary Specification, published in 2012, serves as a blueprint for our community, enabling them to grasp the future dynamics of oil & gas operations and contribute their expertise to this vision. This initiative empowers them to actively participate in shaping the industry's evolution. With the exclusive license provided to our user community, they have the unique opportunity to:
Craft derivative works based on our Intellectual Property exclusively.
Provide essential feedback to our software developers at People, Ideas & Objects.
Exercise discretionary control over their budgets.
We safeguard the outcomes of our user community's efforts, protecting them from the scrutiny and jealousy of the industry's traditional power brokers. This protective measure ensures that our contributors can continue to thrive in their roles without risking their positions. They engage in shaping both the future and the revisitation of past practices, doing so both overtly yet inconspicuously.
Upon the completion of our user community's in-depth analysis and enhancement of the Preliminary Specification, we will be positioned to finalize a system architecture and operational framework. This groundwork will enable us to implement cutting-edge, dynamic, and accountable oil & gas operations, setting new standards for dynamic, innovative, accountable and profitable oil & gas producers in the industry.
The Preliminary Specification introduces an unprecedented scope within the ERP environment, driven not by mere ambition but by the profound challenges and the unwavering stance of industry leaders over decades. The oil & gas sector, essential to our advanced standard of living, faces potential risks. Yet, the ability of producers' officers and directors to address these challenges dynamically, innovatively, accountably, and profitably seems limited by a pervasive culture of complacency.
The challenges posed by the Preliminary Specification are unique, yet the essence of what we offer does not deviate from what producers must inevitably create themselves. Every producer faces the burden of development costs tied to their Intellectual Property, which must not infringe upon the IP of People, Ideas & Objects. This situation raises a significant issue: the lack of a clear vision and understanding to tackle long standing problems like Production Discipline, unresolved for more than four decades.
Oracle's current initiative to overhaul the U.S. healthcare system by shifting the focus from facilities to patient-centric care presents a parallel in ambition. Their approach, aiming to unify patients' medical histories across different healthcare providers, surpasses the scale of our efforts in complexity and scope. This comparison highlights how isolated systems fail to meet contemporary needs for integrated care.
The question arises: Are the initiatives of People, Ideas & Objects and Oracle merely experimental phases for ERP systems, or are they essential responses to the growing demands for enhanced capacity, capability, and organizational performance within their respective sectors? The necessity of such transformations for societal advancement is undeniable. The success or failure of these ambitious projects will ultimately provide the answers. Given the absence of viable alternatives to the Preliminary Specification, the pressing time constraints, and the urgency of our mission, the success of People, Ideas & Objects is imperative. Resolving these industry-wide challenges requires a collective effort, underscoring the importance of every stakeholder's contribution to achieving this goal.
Disintermediation is essential across all industries. The future viability of structured hierarchies is in question, as their current functionality fails to meet the efficiency and commercial performance society demands. The internet has catalyzed various organizational models that introduce innovative approaches to value generation, surpassing the capabilities of traditional structures.
The need for disintermediation within the oil & gas industry is a point of contention. People, Ideas & Objects posit that the existing framework has fundamentally failed, a perspective not universally recognized but gaining traction due to the growing concern over the industry's tendency to overlook or inadequately address business challenges.
A hallmark of disintermediation is the clash between defenders of the status quo and advocates for change. In North America, the oil & gas industry's resistance has been so staunch that it detrimentally impacts all facets of the sector and its ancillary industries.
Viewing the situation optimistically, People, Ideas & Objects see disintermediation not merely as a necessity but as an opportunity. The extensive damage inflicted requires substantial corrective measures to rejuvenate the service industry's capacities and capabilities and to revitalize exploration and production competencies within the producing entities. Restoring trust, faith, and integrity among producers is crucial to re-engaging the investment community with the industry. Ensuring that the sector adopts the most profitable means of oil & gas operations is paramount, along with guaranteeing that consumers have access to energy that is affordable, abundant, and reliable. Therefore, the question arises: Why should the industry revert to outdated methods when modern, proven tools and strategies from other sectors can lead to success?
Our extensive value proposition hinges on a critical premise, leveraged by both categories of Profitable Production Rights Licenses. The historical dependence of producer companies on external capital and the consequent erosion of value over the past four decades have rendered these entities neither profitable nor commercially viable. A well-established principle emerges: over-reported assets lead to inflated profitability figures, triggering excessive investment and, consequently, overproduction. In the realm of oil & gas commodities, adhering to price maker principles is crucial. Decades of overproduction have severely undermined the prosperity of all stakeholders in the oil & gas sector.
This situation reveals an insidious problem eroding industry performance over time. Profitability and financial performance, taken for granted and unquestioned, become ostensibly easy targets. However, over time, organizational performance degrades to a point of complete reliance on external capital for basic operations. The oil & gas industry's culture of unwavering persistence against change has become its Achilles' heel, rendering the sector economically not viable as its present value dips into the negative.
This predicament appears terminal. A market economy cannot thrive with a counterproductive culture; such a culture must be dismantled to prioritize performance as the benchmark for success. Unfortunately, the energy required to dismantle this bureaucratic culture is immense. Luckily, People, Ideas & Objects is poised to reconstruct the industry based on the performance-oriented culture outlined in the Preliminary Specification, ensuring the most profitable oil & gas operations universally.
The industry's pervasive "muddle through" approach, stemming from the assumption that commodity markets will absorb any level of production, sees producers operate at full capacity. However, the Preliminary Specifications decentralized production model and price maker strategy face criticism as potential collusion. Unlike this perception, price makers curtail unprofitable production until it becomes viable, considering oil & gas commodities as price makers to regulate supply by introducing only profitable production to the market.
Directors and officers often mistakenly believe the market will magically balance any volume they produce. This misconception has led to dramatic price declines, including several collapses since 1986 and the unprecedented negative oil price of $37.64 in April 2020. Markets operate on the principle that price conveys information, suggesting production is only justifiable if it yields profit; otherwise, it results in value destruction. This fundamental misunderstanding by oil & gas officers and directors—that they are mere spectators in the market—leads them to persist with production at 100% capacity regardless of market conditions, embodying a culture of loss acceptance.
Profitable Production Rights Licenses capitalize on the disparity between these industry paradigms to offer People, Ideas & Objects compelling value proposition. Predicted to be worth $25.7 - $45.7 trillion over the next 25 years, these licenses could unlock $5.7 trillion in incremental profitability. Contrary to claims that $20 to $40 trillion is needed in capital investment to rejuvenate the industry's capacity and infrastructure. In the Preliminary Specification, this amount is not necessary, since capital costs are recognized competitively with all other industries in North America. Internally generated cash is reinvested to be recovered repeatedly. As a result, it will be invested again and again competitively with what other industries in North America achieve. The costs of a capital-intensive industry such as oil & gas are primarily capital-related and therefore will be the predominant cost passed on to consumers. In contrast to officers and directors strutting down main street comparing their well-built balance sheets and "putting more cash in the ground," the Preliminary Specification puts cash to work, quickly and repeatedly.
Disintermediation, by any standard, holds promise. Despite 19 years of advocating through this blog, the choice of industry leaders to neglect available value in favor of maintaining destructive practices is unsurprising. The value unlocked through disintermediation in various sectors is well-documented, echoing Adam Smith's findings on the impact of specialization and division of labor, which have significantly increased industry throughput. Today, the benefits of specialization and labor division are universally acknowledged as fundamental to our economy's value generation. Yet, ERP software has often cemented organizations in static models, satisfying only those content with the status quo. People, Ideas & Objects advocate for the creation of our permanent software development capabilities to eradicate what we perceive as a contemporary software flaw.
Among the seven Organizational Constructs outlined in the Preliminary Specification, New Growth Theory plays a pivotal role. It aims to lower the overhead costs linked to oil and gas exploration and production by facilitating the sharing of administration and accounting services. This initiative is executed through People, Ideas & Objects, alongside our user community and service providers, via Cloud Administration & Accounting for Oil & Gas. The development of this software and service is financed through the proceeds from the Profitable Production Rights.
Professor Paul Romer's theory of non-rival goods extends and enhances the value derived from Adam Smith's principles of specialization and division of labor. People, Ideas & Objects is committed to abolishing the outdated and inefficient practice of each producer independently developing their administrative and accounting capabilities. Instead, we advocate for the adoption of Cloud Administration & Accounting for Oil & Gas, which provides a shared, variable-cost, industry-wide administrative and accounting infrastructure. Persisting in duplicative administrative and accounting efforts across producers is illogical in the 21st century, especially within an industry burdened by significant overhead costs like oil and gas.
Because the economics of ideas are so different from the economics of markets. We’re going to have to develop a richer understanding of non-market institutions, science like institutions, this is going to be a new endeavor for economics.
Our campaign in late 2023 and early 2024 to highlight the damage and destruction in the natural gas marketplace achieved remarkable success. We have now established as an industry fact that over 17 years, $4 trillion in natural gas revenues went unrealized due to the willful misconduct of certain officers and directors. This figure surpasses our initial value proposition estimates, which supported the potential for $5.7 trillion in incremental profits over a 25-year period for the oil and gas sectors combined. We extend our gratitude to these officers and directors for their unwitting contribution to our campaign.
On February 21, 2024, the Wall Street Journal reported that producers:
1023 ET – Short-covering pushes U.S. natural gas futures sharply higher after
says it plans to cut production this year in response to current market conditions. The reaction looks overdone, but “we are keeping a close eye on matching or similar production-reduction comments from the other majors,” says Gary Cunningham of Tradition Energy. “If those come in the next week or so we could see summer push towards $3 and winter make a drive for $4.” The front month March contract is up 11% at $1.753/mmBtu, with double-digit gains also for subsequent months. (anthony.harrup@wsj.com)
Few industry participants would dispute that the direct costs associated with People, Ideas & Objects would be in the vicinity of $12.79 billion USD. The status quo finds it particularly challenging to acknowledge the costs for Intellectual Property royalties, earnings, and the valuation of Flexible Profitable Production Rights as outlined in the Preliminary Specification. The expenses tied to this initiative are minor compared to the now-validated, undervalued potential the Preliminary Specification is poised to unlock. Our Request for Proposal (RFP) section delves into the rationale behind the budget for People, Ideas & Objects, offering a detailed comparison between the prospective value the Preliminary Specification promises and the existing plans enacted by the officers and directors.
People, Ideas & Objects has reintroduced Profitable Production Rights to fund the development of the Preliminary Specification and establish our user community. On February 26, 2024, we will announce a development aimed at initiating this process. The oil and gas industry faces a critical juncture; it has lost essential capacities and capabilities, rendering it unable to maintain its production profile. This situation has been aggravated by the attrition of long lead times necessary for drilling and completing wells, a process traditionally spanning ten years but now severely atrophied.
Particularly troubling is the industry's reliance on shale, which, due to its high cost and steep decline curve, has left us exceedingly vulnerable to an unprecedented industry-wide decline. The short-term inability to address this production shortfall signals a potential, catastrophic failure, compounded by our documented $4 trillion revenue shortfall created by existing officers and directors through complacency and a lack of proactive leadership.
Addressing this crisis requires an all-hands-on-deck approach, transcending the complacency that has circumvented industry motivation for action. The severe problem of declining production capabilities, exacerbated by industries overexposure to shale, demands immediate attention. Those in positions of authority and responsibility, who have historically preferred to "muddle through" using capital-intensive industry cash flows to offset their hefty compensation, must now face the urgency of the situation. The business discussion cannot end with executive compensation while ignoring these looming catastrophes. A concerted effort involving revised industry leaders, policymakers, and innovators is essential to forge a sustainable path forward for the oil and gas industry.
Status quo producers have lost sight of their purpose. They have failed, will not succeed, and have proven culturally incapable of earning "real" profitability. They have no desire to change or succeed. As time passes, the difficulties in the industry will become more apparent. The choice of alternative organizational opportunities for the greater oil & gas economy is limited to one choice offered by Oracle, People, Ideas & Objects, our user community and their service provider organizations in the form of our Cloud Administration & Accounting for Oil & Gas application. The time to consider these issues has passed. As part of the Intellectual Property available to develop any alternatives, it will be necessary to consider what solutions have already been developed and avoid what exists in our Preliminary Specification. Then undertake the difficult ten year process of researching a solution to achieve the industry needs.
In light of the trillions of dollars of damage and destruction caused by producer officers and directors throughout the greater oil & gas economy. People, Ideas & Objects provide extensive value propositions, developed new business models that bring new value as a result of disintermediation. The cultural methods we implement in the Preliminary Specification to achieve these advantages are described in our seven Organizational Constructs. We are building the future oil & gas industry on these cultural foundations.
As a result of our budget, the producers' officers and directors have maintained their distance from this project. Because of the scope and scale of these issues and this project, these costs must be recognized. Our next phase of development will not be built on one individual's success. As a result, it will be based on a comprehensive sense of urgency necessary to address these issues in the industry. In addition, the revenue potential and characteristics of Profitable Production Rights should reflect a negotiated share of the BOE's value proposition. And determined by the individual rights owner. We will be offering standard documents to aid their process.
The purchase price of these rights is $1,000 U.S. per North American BOE. In addition, the potential revenues and characteristics of that right reflect a negotiable share of the Profitable Production Rights with those who own the oil & gas production. The proceeds are used to build the Preliminary Specification. Fulfilling the need for People, Ideas & Objects revenues from oil & gas production, albeit indirectly in this case. By operating Cloud Administration & Accounting for Oil & Gas software and services, the Profitable Production Right will reflect the intrinsic value of oil & gas production's ability to organize profitably. It is a perpetual right and exists beyond today's oil & gas producers. Although our costs are large they pale in comparison to the significance of the damage done by these officers and directors. This damage is accelerating, has not been identified or approached and continues. Therefore anyone and everyone can share in the effort, the success and the reward of resolving this industry catastrophe to prevent what could become a societal catastrophe.
The status quo in the oil and gas industry is no longer sustainable. Producers have lost sight of their purpose, trapped in a cycle of unprofitability and culturally resistant to change. As challenges mount, the need for alternative organizational strategies becomes undeniable. People, Ideas & Objects, in partnership with Oracle and our vibrant user community, introduces a revolutionary solution: Cloud Administration & Accounting for Oil & Gas. This product represents the only viable alternative to reinvigorate the industry with real profitability and sustainable practices.
Our approach, delineated in the Preliminary Specification through seven Organizational Constructs, offers a blueprint for disintermediation and cultural transformation. These constructs provide a foundation for developing new business models that promise significant value by addressing the billions in damages caused by current leadership practices.
Recognizing the project's scope and the pressing need for industry-wide collaboration, we propose Profitable Production Rights. Priced at $1,000 U.S. per North American BOE, these rights not only fund the development of our solutions but also allow stakeholders to directly participate in and benefit from the industry's transformation. This model represents the purchase of a product with perpetual value in the future of oil and gas, transcending today's challenges.
As we stand at the precipice of what could become a societal catastrophe, it is imperative that we all contribute to a solution. The Profitable Production Rights provide a pathway to rebuild the industry on principles of profitability, sustainability, and collective effort. Our invitation extends to everyone to join this vital endeavor, shaping an industry capable of meeting the demands of the future while rectifying the mistakes of the past.
For over four decades, North America's oil and gas industry has seen billions of barrels of oil and trillions of cubic feet of gas extracted and reported on balance sheets, with unclear benefits to society at large. While the purpose behind these actions may not be fully understood, the necessity for transparency and a reevaluation of strategies is undeniable. Alarmingly, the prosperity generated has largely been confined to the industry's officers and directors, posing a significant risk to societal well-being. People, Ideas & Objects recently documented over $4 trillion in revenue losses were realized in the July 2007 to current period. And did so unnecessarily. With disgruntled shareholders actions since 2015 designed to focus on these issues. And a solution in the form of the Preliminary Specification since August 2012. Willful misconduct are the personal issues in which individual officers and directors need to address.
As these leaders transitioned towards clean energy, taking the industry's revenues with them, questions arose about the legality of this shift. It highlights an urgent need for a system that genuinely aligns with oil & gas profitable oil & gas practices. Enter Profitable Production Rights: a concept designed to steer the industry towards a culture of preservation, performance, and profitability, prioritizing the most profitable means of oil & gas operations.
The Preliminary Specifications seven Organizational Constructs lay the groundwork for this transformation, offering a comprehensive and intuitive cultural framework. This environment invites all concerned stakeholders to engage, innovate, and thrive, marking a pivotal step towards creating a dynamic, innovative, accountable, profitable and prosperous oil and gas sector.