- Developing blockchain platform for oil and gas industry
- Distributed ledger technology to reduce transaction costs
- Now a member of Enterprise Ethereum Alliance
Blockchain deployment is still new, with a world of opportunities for application. Cloud providers are already moving to offer it as an enterprise service (http://dtn.fm/lM2l6). Petroteq Energy Inc. (TSX.V: PQE) (OTCQX: PQEFF) is out to disrupt the oil and gas industry with its new blockchain platform for supply chain management. The platform, to be developed in conjunction with First Bitcoin Capital Corp. (OTC: BITCF), holds the promise of drastically reducing operating costs for the industry. At present, oil is traded through a diverse network of producers, suppliers, contractors, subcontractors, refiners and retailers in such large volumes that tracking the movement of crude is a Sisyphean task. However, the new platform, by employing blockchain technology, will be able to represent physical supplies of crude by digital assets, which remain digitally attached throughout the supply chain journey.
In November 2017, Petroteq Energy announced a co-development agreement with First Bitcoin Capital Corp., under which the companies will develop the new supply chain management platform based on advanced blockchain technology. The new platform, called PetroBloq (www.PetroBloq.com), offers the promise of improving efficiency, transparency and security in the oil and gas industry. According to the company, “PetroBloq will be the first blockchain based platform developed exclusively for the supply chain needs of the oil and gas sector. PetroBloq users will enjoy cost and time savings, increased transparency and the ability to mitigate the constantly evolving geopolitical atmosphere and market fluctuations.”
Presently, the industry relies on an extensive global supply chain that includes domestic and international transportation, ordering, inventory management and control, materials handling, import and export facilitation, refining and information technology. Due to the size and complexity of this system, accurate information is difficult to compile and is usually outdated by the time it is verified and published. However, with blockchain technology transactions for product trades and transfers can be instantly verified across an entire global network without reliance on a central reconciling authority, potentially reducing operating costs, more securely storing and managing data and speeding up the processing of transactions.
A study by Deloitte proffers one example of how the oil and gas industry might benefit from employing blockchain (http://dtn.fm/Kl9x6). By issuing digital tokens with names, perhaps, like Brent or WTI (for West Texas Intermediate), a blockchain-distributed ledger could be used to trade barrels of oil. These tokens would represent the underlying asset (a barrel of oil) and would remain digitally attached throughout the supply chain journey. By using tokens in a blockchain, payment could be processed more quickly, paperwork such as title transfers would be eliminated and disputed transactions would be significantly reduced. Currently, around nine percent of crude oil transactions are disputed, which equates to around $150 billion annually.
Petroteq is moving ahead quickly with its blockchain initiative. On December 4, 2017, it announced that it had joined the Enterprise Ethereum Alliance (EEA), the world’s largest open-source blockchain network (http://dtn.fm/ylZn1). The EEA brings together over 500 enterprises and experts to discuss and develop the ethereum framework, which is currently the only blockchain running in real-world production that supports smart contracts. A smart contract is a program, which encodes the terms of an agreement and is stored, replicated and supervised by a network of computers running a blockchain.
Petroteq has also announced that it is now a member of the API, or American Petroleum Institute (http://dtn.fm/lNIq1). The API is the only national trade association representing all facets of the oil and natural gas industry. It promotes safety across the industry globally and attempts to influence public policy in support of a strong, viable oil and natural gas industry.
Petroteq Energy is also involved in the development and implementation of proprietary technologies for the environmentally safe extraction of heavy oils from oil sands, oil shale deposits and shallow oil deposits. The company has already revolutionized extraction methodology with its introduction of a unique, environmentally safe, continuous flow, closed loop technology – a first in North America and probably in the world – that requires no tailings ponds. With its new blockchain initiative, it is promising to bring that same innovative approach to oil and gas supply chain management.
For more information, visit the company’s website at www.PetroteqEnergy.com
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