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 | Large Independents 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 |
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
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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
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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
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. | 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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