Standardized Data Model

 We’ve come across an opportunity in terms of implementing the Preliminary Specification in oil and gas. The opportunity is presented to us through the work that Oracle has done with their products, services and offerings. Moving to the cloud has enabled them to bring about enhancements to their offerings, but most importantly it’s the changes that we’ve seen to the Oracle Database. We’ll get into more detail as we proceed however my research has determined that what is attainable and desirable is that we standardize the data within the business model’s and markets of the Preliminary Specification into a data model. The objective being to standardize all the elements of the administrative and accounting processes and management of the greater People, Ideas & Objects community and the greater oil and gas economy onto Oracle’s Database offering. In order to achieve this otherwise unattainable objective, an industry would need to be undertaking a comprehensive, industry wide “rip and replace” development and implementation of their ERP systems. An industry that has been determined to have comprehensively failed and one that has no plans or vision for its future or what to do about the current crisis it finds itself in. Granted our use of the Oracle Database in this manner is at the forefront in terms of technological demands, however I see no issue with the maturity of their technologies undertaking these tasks. I do see unnecessary complexity and confusion being introduced through non-standard data elements being included within the Preliminary Specification due to prior preferences, convenience and time constraints. Convenience and time constraints for the people that are imposing the constraints not for the implementation of the Preliminary Specification. I see my role in the development of the Preliminary Specification as a need to ensure that its development and implementation is successful. I believe that the North American oil and gas industry is unable to resolve its issues without the timely solution of People, Ideas & Objects and our user communities Preliminary Specification. What are the alternatives? The more time that is spent developing the solution the many more hundreds of billions of dollars that are being lost each year in the greater energy economy. This should be evident to everyone at this point. I would ask therefore, what would the data elements of an ERP system be in the year 2030? When and how would that standardization of the data have been established? Is the incidental cost of standardized data offset by People, Ideas & Objects value proposition?

I have spoken many times of the superiority of the Oracle Database technologies. Their development over the past decade has been breathtaking to me in terms of the performance and all other attributes of the product. Interestingly the competitive markets response to their superiority has been to break down database services into unique disparate database offerings. The most obvious of this is Amazon’s offerings of relational databases that include Amazon Aurora, Amazon RDS and Amazon Redshift. Each with a distinct purpose and use. These are the premier database products of Amazon’s eleven databases offered. Oracle uses just one database for all purposes. Therefore no matter what the data, the type of performance that is needed, or the structure of the data, Oracle handles it within the same database. Which presents us with this unforeseen opportunity to standardize the data model for the decentralized production model, overall business model, which includes the three market models of the Preliminary Specification and application user groups. I see this as an opportunity that will enhance the quality of our offering, reduce the need for standardization in the future, reduce the time required to develop and implement the solution and increase the usability and understandability of the applications, and therefore bring the Preliminary Specification to market quicker and with greater efficiency than otherwise would be available. 

The comprehensive scope and scale of the Oracle database in the oil and gas industry once the Preliminary Specification is implemented is comprehensive. The more that we make the data standard the more secure, reliable and capable it will be able to meet our performance expectations. We are using a micro-services architecture to implement the data processing and process management from the expected 3,000 service providers. The application itself will run much of the industry on Oracle ERP Cloud through the People, Ideas & Objects applications. Some producers will use the proprietary cloud offering that Oracle provides which moves Oracle's Cloud physically inside their shop. And then there will be a variety of People, Ideas & Objects applications that are used within the oil and gas producers themselves in order to understand and operate their businesses and operations. This can all be done far easier with the standardized data being managed within the Oracle Database as opposed to accessing it from here and there in various formats that are not incompatible, but introduce complexity and risk to our development and implementation and to what we are seeking to achieve. That being our $25.7 to $45.7 trillion value proposition over the next 25 years. 

It’s important to note here that what I'm talking about is the data model, not the database. The database requirements in this post can all be handled by Oracle's Cloud Autonomous Database offerings. The fact that each service provider will possibly be operating their own Oracle Database, a shard or through shared tenancy is unknown at this time. The same would apply to each of the producers, however having access to the database through shared tenancy would more than likely be the method used there. The use of one tool, the Oracle Database across the entire People, Ideas & Objects application domain, using a standardized data model provides real value for all concerned and a step closer to everyone realizing our value proposition.

I want to reiterate what my personal plans are for the development and implementation of the Preliminary Specification. I have stated here many times that these developments are derivative of the Intellectual Property that I’ve developed over the past number of decades. It’s unknown how much longer it will take before these developments begin however we can all see that the industry is accelerating the steepness of its downward trajectory. The key for me is to watch the actions of OPEC+ as they have attempted for the past 34 years to deal with the North American producer in what I feel is a reasonable way. A way in which the North American producers' best interests reside. North American producers fighting everyone has not done anything for them and now their business is more or less finished. And as we’ve noted in June and July the only thing left to do would be to litigate the losses that have been created over these past decades and secure some of the benefits of the enhanced officers and directors insurance. 

As the budget for the Preliminary Specification denotes there is a big payday for myself personally once we’re funded. However, I’ve also stated I would sell People, Ideas & Objects to the industry upon successful completion of the development and implementation. What I have referred to as my second big payday. Included in that would have been the operating company and all of the Intellectual Property associated with these developments. I’m now changing that as I feel it does not reflect the necessary situation that the user community will need to be placed in once the industry is in the position of owning both of these assets. Therefore, upon reflection and discussion with user community members, I’ll be granting 51% of the Intellectual Property to our user community and selling 49% to the producer purchasers in the sale contract. It is in that way the future of the user community is not in question and will be within their own control. Something that I feel more comfortable with and assured that the direction of the software will be the appropriate direction for the needs of the greater oil and gas economy. Please note this has also been changed in the user community vision. 

The Preliminary Specification, our user community and service providers provide for a dynamic, innovative, accountable and profitable oil and gas industry with the most profitable means of oil and gas operations, everywhere and always. Setting the foundation for profitable North American energy independence. People, Ideas & Objects have published a white paper “Profitable, North American Energy Independence -- Through the Commercialization of Shale.” that captures the vision of the Preliminary Specification and our actions. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don’t forget to join our network on Twitter @piobiz, anyone can contact me at 713-965-6720 in Houston or 587-735-2302 in Calgary, or email me here. 

Some Miscellaneous Items

A Subdued Stampede

The Stampede in Calgary is as much of a corporate event as it is a tourist attraction. We welcome the tourists each year to what we call the “greatest outdoor show on earth.” And as a visitor, I can only assume they have a good time. The town transforms itself into one party city. I for one have looked upon Stampede as a time to let loose and enjoy the weather and the festivities. This tradition has been upheld throughout the city since the beginning of time. Well over the past 100 years, our big flood of a few years ago, gave it the appropriately named “come hell or high water” as the theme. That flood was the countries biggest natural disaster, happening one week before the big event, and it didn't slow this town down. Apparently this year we will witness what does slow the Stampede down.

Cancellation of corporate events is the name of the game in town. It would seem the oil and gas industry wants to send a message to the new government that they are not happy with their plans for a revised tax and royalty regime. Since when did the bureaucrats concern themselves about the business of the oil and gas business? Optics? It doesn't look good to be partying so hard when the people need to be told that their choice in government doesn’t sit with them. So instead of partying, everyone will be present at their desks for the entire Stampede. No corporate breakfasts or festivities. That'll send the message.

Its one thing to sit down and make representation about how the industry is having difficulties financially. To engage the government to advise them and educate them about the industry. The New Democrats are now running a $40 billion government with many of the cabinet ministers never being responsible for much more than their local communities budget. A little help and encouragement might have been the appropriate direction. Particularly their leader Rachel Notley is of fine pedigree and seems capable and approachable. These bureaucrats however have fallen into their classic pattern of attack and bully to make it as difficult for everyone, and the bureaucrats importance is the key and only issue.

These bureaucrats don't concern themselves with the business unless they can exercise some real public relations value out of the issue. By ramping down the Stampede festivities they attempt to destroy an annual tradition so that they can look good in the eyes of, well I don't know who will buy in to the BS, or who will give them credit for being prudent about the business. If they were really concerned about the business they would be focused on our $45.7 trillion value proposition over the next 25 years and how they can make that real. Not in punishing everyone during Stampede week.

The Cloud Paradigm

Amongst our distinct competitive advantages, the cloud provides us with much value over the traditional decentralized IT infrastructure. Today, each producer is tasked with the needs of developing, maintaining and operating their organization with the IT resources afforded by their budgets. This may have been easier in the past when the organization was less dependent on IT, and when the IT infrastructure was less robust and mature. Now with so much dependent on these technologies the ability and capability to have the skills, talent and resources housed within the producer organization are exceeding the budgets that are provided to these departments. None of this activity is within the domain of a producer's competitive advantage of their earth science and engineering capabilities, or land and asset base.

Maybe the best example of this is in the area of security. Where cyber security has become the issue of the day and is occupying many hours and days within a producer firm. Each producer is having to spend this time and effort to ensure the firm's data and resources remain secure. Each producer is undertaking the same tasks and activities to ensure their systems are safe. With the cloud, or more specifically with People, Ideas & Objects, producers will be able to rely on the efforts of our software developers, our user community and the service providers to provide this security. By aggregating the resources of the industry we are able to focus our budget on items such as cyber security and devote more resources to the issue than what a producer can. This centralization theme works most effectively in our key competitive advantage of providing the oil and gas industry with a software development capability for the long term. A capability that will enable changes to be made in the business model when and if they are required.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative, profitable and successful means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

We Are on Trend Here Too

I have two articles today that show that we are on trend in terms of the implementation of our technological infrastructure. The articles are from McKinsey and from Forbes. Both speak directly to the type of activity that we are applying here at People, Ideas & Objects to the oil and gas industry.

The first is the Forbes article which was published on January 27, 2015 and is quoting Mark Hurd who is the CEO of Oracle. As you are aware we are using Oracle as our infrastructure provider and recently made the decision to use their cloud based offering to support our development environment, and the hosting of our software to the oil and gas industry. Here is how they think the market will develop in the next few years.

He said that Cloud applications will account for 50 to 60 percent of the total enterprise application market within 5 to 6 years because of advantages related to speed of development of new functionality, easier implementations and much, much easier upgrades.

This is not a significant revelation to anyone and I think he might be underestimating the size of the marketplace changes in that short period of time. The important element of the discussion in the Forbes article comes later when he talks about the unique requirements of cloud computing and what kind of approach that requires companies to take.

Steve Miranda, the Executive VP of Development at Oracle, said that because of these advantages, “It is not a question of ‘if,’ it is a question of ‘when,’ all new applications (from all enterprise vendors) will be delivered in the Cloud.”

Miranda made the point that to fully leverage all the advantages inherent in the Cloud, applications need to be rebuilt from scratch rather than just hosting existing applications.  In particular, the Oracle applications were rebuilt to: first of all, support frequent updates, through the use of more metadata; and secondly, to reduce the need for customization by building out Platform as a Service (PaaS) capabilities that allow extensions to the SaaS-based Cloud applications to be built and thus allow for protected upgrades.

Industry and producers need to rewrite their applications in the coming years “from scratch” in order to realize the value of the coming new technologies. At least that is how I interpret those statements. And I agree with the statement. The current crop won't do for the future. What better way to do that application rewrite than with a value proposition who’s present value is in the $5.7 trillion range.

I like to keep these posts down to small bite sized format. Have each day with something tangible for my readers to digest. Therefore to add the McKinsey article here would violate that need. So I'll be putting that up in Part II tomorrow.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

Time, Time, Ticking

And that is what I did on my Christmas vacation, Mrs Herman. All joking aside I was busy doing a review of the project from stem to stern in terms of what could be done to improve the time and speed of our delivery. As you could see I was not too concerned about our cost. We can always justify our cost if our value proposition is being met. The existing business model of the bureaucracy provides us with a baseline for our value proposition. Cost isn't the issue, it will be the time that we take to deliver our product to the market. If the bureaucracy. Scratch that. When the bureaucracy fails there will need to be an alternative in the marketplace as quickly as possible. We will need to be there before (ideally) anyone realizes there has been a wholesale failure. As it stands today that is the opportunity we currently have in hand.

In terms of making the People, Ideas & Objects organization faster and lighter, 2015’s version seems remarkably nimble and flexible. The decisions that I announced to you of the cloud computing infrastructure for the development environment and deployment to the industry may not seem that significant to you at this time. From my point of view they are significant. I was able to cross off many boxes within our organization that don’t have to be filled now. A number of them were very senior positions. Our costs in terms of time, effort and the most important commodity energy. Are saved for our primary concern, our user community. We can keep our focus more clearly on our target without the distraction of tedious physical constraints of hardware issues.

And when we go to deploy our application to the producers through our service providers. Both of those communities will experience higher levels of hardware performance as a result of Oracles significant investment in the cloud. Something that we would never have been able to match. And something that we are able to attain by simply flipping a switch. Again without the significant deployment of capital, people, physical effort and energy to setup a facility that we might have ended up failing at in the end. The decision to go to the cloud in both the development environment and our deployment were decisions that I had to consciously make. I had always personally had the vision of the physical machinery within our own domain of control and never questioned it. The speed and lightness that this decision has made on our delivery could make the difference between our ultimate success or failure and may be responsible for reducing up to a full year in terms of our delivery time.

The other major decision that was announced. I made many decisions that I did not announce, some where the impact is too minimal or of little consequence to you. The other decision was to ignore the bureaucracy. As I stated to the investors and users the impact on them is significant. The impact on People, Ideas & Objects is sizable in terms of the time that will be required for us to deliver our product into the marketplace. This too may take a full year off our delivery time. But more importantly, as I stated, it may be responsible for removing 10,000 man years of frustration and heartache from the user community in having to deal with the compromises and contradictions of dealing with the bureaucrats. What could be more valuable?

Accelerating our speed to market will be a pressure that we all will begin to feel soon. It should be something that all members of the user community should ignore and disregard. It is beyond what can be dealt with in your day to day efforts. What is important is the quality of your efforts in making sure that the oil and gas producers attain the most profitable means of oil and gas operations. I’ll take care of the time of delivery issues and how we can make sure our efforts are more efficient. Its decisions like these that can save years, frustrations and heartache that are far more effective than what you can do to “speed up” your work. You can only affect quality. And by feeling the pressure to deliver sooner you’re going to affect your quality negatively. So don't concern yourself with speed and be assured that whatever can be done about the time to delivery is being done on your behalf.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here.