Our Value Proposition

People, Ideas & Objects our user community and their service providers value proposition is that we provide North American oil & gas producers with the most profitable means of oil & gas operations, everywhere and always. We do this by developing, providing, implementing, supporting and defining within the Preliminary Specification a business model and vision that enables the producer to be more profitable than in any other business model. Our value proposition is quantified over the next 25 years in the range of $25.7 to $45.7 trillion. This incremental value is compared to oil & gas producers' current "corporate" business model. The difference between average oil & gas prices currently realized vs. actual exploration and production costs determined by accurate and timely accounting constitutes the value of this ratio. To earn "real" profitability, producers need higher commodity prices. From Professor Richard N. Langlois' recently released book, The Corporation and the Twentieth Century: The History of American Business Enterprise.

To economists, a “bubble” occurs when the prices of assets diverge from the “fundamentals”: when people do not trade strictly in light of a careful and sober assessment of the prospects of the firms issuing the stock, including the prospects for dividends, but rather trade purely in expectation that asset prices will continue to go up and provide them with capital gains. Essentially all popular accounts take it for granted that the crash of 1929 was the result of a stock market bubble. So too do Keynesian (and post-Keynesian) economists, who believe that financial markets are inherently unmoored from the fundamentals and are inevitably at the mercy of “irrational exuberance.” Experimental evidence suggests that even when trading is clearly grounded in fundamentals, adjustment is never instantaneous and bubbles are possible during the process.

The Preliminary Specification assumes that producers' property, plant and equipment accounts, as they stand today, will need to be exhausted in the next 30 months. Producer firms need to cease using investor capital to subsidize consumers' capital costs. All industry value and cash resources are held in producers' property, plant and equipment accounts. They’ve literally “put the cash in the ground.” This reflects the cumulative subsidies producers have forced investors to subsidize consumers by. If industry were to recognize those costs based on our Preliminary Specifications decentralized production models price maker strategy they would resume normal healthy operations without the need for outside capital. Key to this strategy and the realization of this value is the implementation of our price maker strategy. This would enable oil & natural gas prices to capture all exploration and production costs in a timely and accurate manner. This would ensure profitable operations. And therefore the industry could compete on the North American capital markets. Oil & gas is a capital intensive industry, so it is reasonable to assume that consumer costs will be predominantly capital in nature. This hasn’t been the case for four decades. Please review the Preamble to the Preliminary Specification for more information on our decentralized production model's price maker strategy.

Everyone intuitively understands that if each producer scaled back their production by 5% their revenues would triple. Oil & gas are commodities that reflect economic characteristics of price makers, not price takers as assumed today. With an elasticity of supply / demand characteristics severely affected by the incremental barrel. The issue is producer organizations built today were developed during resource scarcity. When resources are scarce, full production is assumed at all times. Therefore, using the high-throughput production model to offset high costs of an operation, especially overhead, would be a logical organizational approach. In the shale age, however, the market consistently experiences that incremental barrel, which leads to commodity price collapse. Therefore, an organizational methodology is needed to organize North American producers. One in which only profitable production is produced everywhere and always. And profitable from the point of view of all exploration and production costs being recognized on a timely and accurate basis. Turning over the capital trapped in property, plant and equipment so that capital resources, or cash, are not sitting idle waiting for decades to be returned and redeployed. In addition, investors are asked to fund basic operations. Investors are unwilling to invest their money and watch it sit in property, plant and equipment for ten to twenty five years. This is when other industries turn capital over in six months. Oil & gas producers are not competing for capital, only consuming it as evidenced by their claims of “building balance sheets” and “putting cash in the ground.”

People, Ideas & Objects are turning the entire industry's focus to where its value can best be increased. Profitable energy independence in North America. The producer's value proposition to the oil & gas consumer is quantified in the area of 10 to 25 thousand man hours of mechanical leverage. This is for each barrel of oil equivalent. The greatest contribution to society of any industry. One that civilization loses without. This needs to be the heightened focus and drive of producer firms. This is where their value is realized and the outsized role they play in the critical nature of providing abundant and affordable oil & gas products to the most powerful economy man’s ever known.

Who Are We Building Systems For?

We now apply and extend Professor Jurgen Habermas’ 1960s theory of different knowledge interests from his book The Theory of Communicative Action. We delve into the difficult question regarding what we need the Preliminary Specification for. Are we developing systems that manage oil & gas producer commercial operations? Yes we are, but that does not address the societal and individual needs of these systems. If we continue to look at just producers' needs, we leave many needs unaddressed. Society and individuals are critical elements of a profitable oil & gas industry. For example society benefits by having producers and the service industries efficiently interact, develop profitable operations, pay royalties and taxes. Individuals create innovative solutions to producers' demands for their services. Profits from primary industries such as oil & gas are necessary to ensure prosperity throughout the secondary and tertiary industries that exclusively support North American producers. Trickle-down economics is valid in its application. This has not occurred in oil & gas and now there are significant issues ahead and large consequences as a result of the past management of the industry. Today no one in oil & gas would question the need for real profitability in North America, everywhere and always.

Organizations, individuals and society benefit from increased automation, expanded division of labor and specialization. As defined by Professor Anthony Giddens' The Constitution of Society and Professor Wanda Orlikowski's structuration model. In today’s globalized, high technology workplace an expanded division of labor and specialization can be more efficiently created through permanent industry-wide software development capability. People, Ideas & Objects describes this in its Preliminary Specification. When we consider the oil & gas industry's economic output, increasing it requires increased levels of specialization and division of labor. Responsibility for increasing output does not fall on society, individuals or organizations in isolation but on all three. Therefore it is reasonable to state that what we need is the Preliminary Specification to address societies, individuals and organizations' needs. I do not foresee further development of the division of labor or specialization within the oil & gas industry without systems development involvement. In a somewhat deliberate manner where all groups are represented such as People, Ideas & Objects Preliminary Specification.

The Flow of Funds

As well as their work with People, Ideas & Objects our user community relies on this as one of two sources of funding. I now seek to clarify how our revenue model provides funds flow within these associated communities. To start we need to clearly identify the two different groups that are supported by People, Ideas & Objects revenues and who is not. These groups include (1) People, Ideas & Objects, (2) our user community members. Service providers are a separate and distinct group of independent businesses funded by producers. These funds replace their current accounting and administrative resources. They will deliver People, Ideas & Objects software with process management services directly to producers. Therefore, our user community members will receive another revenue stream since they are the service provider's principal owner and operator. The size of the service provider's revenue stream would be consistent with what is incurred today in the oil & gas industry for accounting and administration. The need for financial support for these communities is as follows.

Funds will then be distributed from People, Ideas & Objects to our user groups for their participation in our software development. Our user community members are independent business people. They define and design the systems needed by the oil & gas industry based on the Preliminary Specification vision. This is a revenue-generating activity for their organizations. It is in this way that People, Ideas & Objects acquires Intellectual Property rights to our user community members' contributions. Please see our User Community Vision for further information.

People, Ideas & Objects Capitalization

Another element of our Revenue Model is the means by which People, Ideas & Objects are capitalized. Traditionally software developers are stand-alone organizations with their own banking, regulatory and venture capital influences. People, Ideas & Objects takes a project management perspective in providing this software solution to the marketplace. Our capital structure differences are significant, with our Revenue Model being a critical element in defining and supporting these differences. Other key deliverables of this organizational structure are People, Ideas & Objects earnings, Intellectual Property royalties and Flexible Profitable Production Rights.

Our ability to maintain our focus on our user community's needs. I believe the situation in oil & gas today is the most significant issue in its history. The monetary value of our solution to the oil & gas industry is substantial. On the other hand the oil & gas industry, from an ERP perspective, is very small and raises a number of difficulties in terms of realizing any value from our efforts. Our budget is immaterial to the value created when producers implement the Preliminary Specification. Far more money is lost each month due to oil & gas overproduction and oversupply.

Our application scope and scale are very large. We need to eliminate and deal with any constraints that would otherwise occur with a compromised capital structure of People, Ideas & Objects. Therefore People, Ideas & Objects is funded by its Revenue Model and focused on its users, making it more of a project management venture. To be clear the scope and scale of People, Ideas & Objects is well beyond what venture capital groups would fund. Complicating our capital structure only complicates and compromises our software and services deliverability. To suggest that People, Ideas & Objects can be structured without investment capital might be naive for me to consider. However I do know that it would be naive to suggest that the systems as described in the Preliminary Specification could be built with the traditional influences of a capital structure. It would be contrary to the best interests of breaking from the existing failed industry culture. Theoretically our investment capital demands may require us to compromise with producers on a few key issues. To then suggest that we were focused on quality and achieved that through our user community would be a farce. Therefore, with that in mind and to ensure that the Preliminary Specification captures the full scope and scale of the technical and geographical concerns of the profitable North American oil & gas industry we can ensure that our user community basis for our software development remains our priority.

We must break from the dysfunctional culture of the current industry's administration. We will only recreate the same failed state if we need to compromise on their failing methods in order to receive our funding next month. Another issue with our funding is that we are subject to producer firms' whims. When push comes to shove, market dynamics may have changed as they did in 2022 with higher commodity prices. It would then be a good time to cancel this project by cutting its funding. Please note that 2022 may be the producers' 6th good year out of 36! Only when they have some “skin in the game” will they remain committed to the manner that will make this project successful and carry it to completion. Expecting producers to directly, or indirectly through our Profitable Production Rights, pay for large development costs. And it is to ensure that they face the difficulties and accountability necessary to firstly admit they've failed and secondly be committed to one solution.

We have discussed the risks of becoming “blind sleepwalking agents of whomever feeds us.” It's an issue of concern when discussing systems development. People, Ideas & Objects Revenue Model shows these risks are real and require an entirely different approach to funding our software development. It serves no one's interests, People, Ideas & Objects, our user community, service providers, producers or the service industry to proceed without dealing with this issue. It is advisable to identify these conflicts and compromise situations now, while the influences are manageable. Financial participation is how our communities are supported and can avoid becoming “blind sleepwalking agents of whoever feeds us.” People, Ideas & Objects are user focused developments. Software development projects can prioritize many choices. Users are one, technical efficiency is another and there are many other possibilities. To support the oil & gas industries' profitability needs everywhere and always. It is critical to focus on a producer's competitive advantages, their land & asset base, and their earth science & engineering capabilities. Users need to have the software tools, capabilities and means of production (the financial resources to build these products and services) under their control. If funding were to be cut or suspended mid-way through this project only the producer's officers and directors would win. There would never, or could ever, be a resurrection of the project or anything similar for the foreseeable future. Producer officers and directors need to be removed from the future success or failure of this development. Cutting their control of this project's funding is only the first step.

Change-Based Software Development Capability

People, Ideas & Objects focus on our user community. They are one of our three competitive advantages. They are our customers. Providing them with the software development capabilities they need to support oil & gas business opportunities and issues in the 21st century. This is not a static instance. As the oil & gas business changes, the software derived from the Preliminary Specification will accommodate those changes. This will be done through the establishment of our permanent software development capability and our user community. We therefore provide change-based software development capability for the North American oil & gas industry. We are not introducing “new” technology for technology's sake. Technology will have a substantial impact on our revenue model. However it is the oil & gas business, and the changes in that business that drive our user community and People, Ideas & Objects.

Traditional ERP vendors in the oil & gas marketspace "sold" a solution to oil & gas producers and supported that application through an annual service contract. Our competitors sell a product that does not keep up with changes in the business environment. Contrast that to the People, Ideas & Objects Revenue Model that is dynamic in that we focus on business environment changes. Preparing Cloud Administration & Accounting for Oil & Gas software and services. These changes generate our revenue stream. Without changes to the software, there would be no developments and no fees assessed in that year by People, Ideas & Objects. These fees are the annual fees incurred by producers once the Preliminary Specification is released.

It is a fundamentally different point of view. Traditional ERP vendors are constrained by their code and their customers. Any changes to the code need to be populated for the variety of customers who use their software. As a result, the vendor is resistant to change. The more code the software vendor generates the more complex the changes will be. And the more customers vendors have, the more costs and conflicts arise. Innovations and enhanced features are not covered by the software vendor's service contract. People, Ideas & Objects will use Oracle's Cloud ERP where changes will be populated for our user base on the same quarterly basis as Oracle’s product. We are oriented to the changes in the oil & gas producers business environment through the demands of our user community. These changes drive our revenue. The contrast between the traditional ERP vendor and our change-based software development capability could not be greater.

Our applications provide software development capability for the oil & gas industry, service providers and service industries. It allows the industry to adapt when opportunities and issues arise. We believe that proceeding through the 21st century without a team of committed and capable ERP software developers will unnecessarily constrain the oil & gas industry within the Preliminary Specifications definition. Evolution of that model is necessary to eliminate systemic and chronic issues. As an example, the current problem of overproduction and oversupply has been around since the mid-1970s.