. . . Creating The Next Oil Industry


Significant changes in the oil industry continue:
Supply is falling and demand is raisingPrices are raisingMargins remain low
Technical Staff is agingCollege Students are not attracted to the industryLack of experience will become more of an issue
Mergers continue to consolidate assetsSuper Giants can not compete with lean managementCompanies like Apache will continue to grow at historical rates
Industry R&D has been decimatedSeismic Services are in financial troubleThere is increased competition from China, Brazil, Mexico, etc.
Bureaucracies in large organizations create business frictionNew technologies allow very small companies to compete technicallyOutsourcing is moving upstream


Consultants are self-organizing as The NetWork to meet these demands:
Retired and displaced geoscientists love the industry and their workEconomic downturns have compromized retirement plansExceptional experience and talent is available, especially when there is an opportunity to participate in the upside
Mapping experience against a model of industry processesMapping experience against a spatial indexFormalizing participation through purchase of technical and spatial niches


The economic value of The NetWork is the Next Step beyond Synergistic Organizations:
TMI's (Technologies of Mutual Interest):
  • "Nobody is as smart as everybody"
  • "Communities of Interest" enhance skills inside and outside traditional organizations
  • Formalized "Best Practice Libraries" become a key resource
  • Contract R&D (like the on-line outcrop atlas) targets results to operational issues
  • New sensors will change business processes
AMI's (Areas of Mutual Interest):
  • "Portfolio Analysis" cross-referenced against geology
  • "New Opportunities" cross-referenced against geology and upside
  • "Ranking" based on automated cross-referencing
  • NetWork AMI's insure non-compete by all members of The NetWork
  • The "Best Resources", in terms of experience and technology, optimize identification of AMI opportunities
The Exploration Farm Clubs:
  • "Data Mining" enables individuals to be competitive in exploration
  • "Pattern Finding" allows semi-automated generation of new exploration Concepts, Leads, and Prospects
  • "The Lead Generation Machine" optimizes exploration at the regional and reservoir scale
  • Funding "Virtual Teams" enables natural absorption of successful projects
  • "The NetWork" is the epitomie of natural selection
.The following are three approaches for testing The NetWork. It is logical this test start out with a small project and grow. Confidentiality is important for each approach. Understanding Intellectual Property is key to the TMI Approach..
Approach 1: Fund TMI's:
  • specific technology evaluation
  • specific technology R&D
  • technology productization and implementation
  • outsourced R&D for specified operational issues
Approach 2: Fund AMI's:
  • contract interpretation
  • "Data Mining" a Texas County sized area
  • "Pattern Finding" in 1,000 wells and/or 3-D seismic
  • Outsourced Exploration or Reservoir Development
Approach 3: Fund a new company to test "The NetWork":
  • data, evaluation, lease acquisition, and drilling in a specific county sized area
  • do above for a state sized area
  • do above for a country sized area
  • do above for a worldwide exploration program


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