Specialization and the division of labor have their origins as far back as the 1790’s and Adam Smith. These two concepts are responsible for all economic growth since that time. Simply through the act of specializing on tasks and dividing up the labor throughout the organization, or markets, economic output is expanded from the same resource base. Therefore for the oil and gas producers to approach the demands for more energy in the insatiable demand era, requires that we reorganize the division of labor and specialize the tasks within the industry.
To undertake this specialization and renewed division of labor we need to take into consideration two important points. The first is that we are currently standing on the shoulders of giants. That we live in a place and time where the specialization and division of labor that is employed in the oil and gas industry is very sophisticated and complex. We therefore have far to fall. Secondly it is necessary to approach a revised specialization and division of labor with the use of software to define and support the organizational constructs. The next level of economic expansion may not happen by the indirect changes made by people on a day to day basis. But will need to be designed and implemented in the software first, before the organization can attain the benefits.
It is in the Preliminary Specification that we use the tools of specialization and the division of labor extensively. They are used to focus the energies of the producer firm on their competitive advantages of their land and asset base, and their earth science and engineering capabilities. Taking the administrative functions that are focused on the Joint Operating Committee and outsourcing them to independent service providers. These service providers are independent in that they are not affiliated with any one specific producer in the Joint Operating Committee. And they are focused on the efficiencies that can be attained when they look at a process, such as lease rentals, from a global industry wide perspective.
It is through the identification and supporting of a higher level of specialization and division of labor that People, Ideas & Objects makes our claim that we provide the innovative oil and gas producer with the most profitable means of oil and gas production. Without the software as detailed in the Preliminary Specification, the ability to organize the industry will remain at the status quo level of operation. The ability to approach the insatiable energy era is a deliberate act that starts with the development of this software.