I Have No Recollection of the Facts in Question

We are excited to welcome Geoforce guest blogger Charles (“Chip”) Davis. Mr. Davis serves as the Lead Independent Director on the Geoforce Board of Directors, and is the Managing Partner of Houston Ventures III, a private equity fund launched in 2011 that is focused on energy technology. He also manages PEG I and PEG II, launched in 2004 and 2006, respectively, which target growth-oriented technology, energy, and healthcare investments. He has over 15 years of experience investing in early stage technology businesses, a deep energy industry network, and extensive deal structuring experience. Welcome, Chip!   “I Have No Recollection of the Facts in Question.” When I was young…I spoke to my parents with a certain disdain for their forgetfulness. I would wonder how they could not remember in complete detail each and every word we exchanged and every promise they had made. I did not know how humans could operate this way. Thirty five years later my own children wear a similar disdain for their father whose powers of memory are diminished. Imagine a business where commercial exchange relied on the “But You Promised!” parent/child memory system. Imagine the level of disagreement that would occur if commercial facts were contemplated not until a full 30 days after they occurred and at a location hundreds of miles away from the origin of those facts. A significant part of oil field service, in fact, does this – let me explain. Most oilfield transactions occur in remote locations. Generally the economic terms of those transactions are negotiated well in advance however many of those terms are conditioned on the facts of the situation. These facts might be about on-site risks or punctuality or mechanical breakdowns or the like. It is these facts that many times are not reviewed until 30 days later and miles away the result of which is the same parent/child forgetfulness gap I observed 35 years prior. This GAP finds its way not only into what should be paid but also the institutional perceptions of quality. History Shall Be Kind to Me For I Intend to Write It. The value of mobile technology is that we are able to all AGREE NOW on every aspect of a commercial oilfield service event including the relationship. I can walk up to you on site with my mobile device and we together (customer and service provider) can create a single memory on the spot in the middle of nowhere. An entire month is made to disappear and the anxiety of “but you promised” is forced into exile. How much would you pay for an entire month?

 

*A special thanks to Houston Ventures for allowing us to repost this blog. To read more from Houston Ventures, visit their blog site here.