. . . Creating The Next Oil Industry

Significant changes in the oil industry continue:

Supply is falling and demand is raising	Prices are raising	Margins remain low
Technical Staff is aging	College Students are not attracted to the industry	Lack of experience will become more of an issue
Mergers continue to consolidate assets	Super Giants can not compete with lean management	Companies like Apache will continue to grow at historical rates
Industry R&D has been decimated	Seismic Services are in financial trouble	There is increased competition from China, Brazil, Mexico, etc.
Bureaucracies in large organizations create business friction	New technologies allow very small companies to compete technically	Outsourcing is moving upstream

Consultants are self-organizing as The NetWork to meet these demands:

Retired and displaced geoscientists love the industry and their work	Economic downturns have compromized retirement plans	Exceptional experience and talent is available, especially when there is an opportunity to participate in the upside
Mapping experience against a model of industry processes	Mapping experience against a spatial index	Formalizing 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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