The last year has seen a notable proportion of crypto processing move from country to county. After being effectively kicked out of China at the start of the year, it moved into Kazakhstan, which initially welcomed it with open arms before the national power-grid started to struggle and the government started to actively discourage crypto infrastructure. Unless it takes a different approach, crypto could become a haunted shadow of its own potential, doomed to wander from country to country, grid to grid, in search of a place that it can call home. The good news is that there’s a solution already in place.

There has been a lot of focus on the natural gas sector over the last few months. Demand was already rising as a result of its increasing importance as a transition fuel, and a recent mix of hurricanes, heatwaves and pipeline issues have complicated supply. Ructions in the crypto sector have added fresh demands and new challenges. The result, naturally, is rising costs. According to Mohamed El-Masri, founder and CEO of PermianChain Technologies, this is the perfect time to look at how we use natural gas globally and see if there are ways to make it more efficient.

It is probably fair to say that at a regulatory level, the response to the rise of crypto has been tepid in many countries. There is plenty of investigation going on into the potential of central bank digital currencies (CBDCs) but in the main though, governments in most countries have been distinctly ambiguous. The problem is that while governments try to develop a response, alternative solutions are taking the opportunity to fill the void, and communities are missing out as a result.

There is a neat way of reducing waste in the oil and gas sector that will also meet the crypto sector’s growing appetite for electricity in a responsible way. And it could be the first step in significantly enhancing the way that the entire natural resources sector operates. Tokenization is more than hype.

Digital securities are receiving a great deal of attention at the moment, but what is getting lost among the hyperbole and technical explanations is an objective, simple, view of their benefits. Let’s try and remedy this issue, looking at the five key benefits from the perspective of the natural resources sector.

Let’s be honest from the start, the first rule of investment is that there are no rules. As the last couple of months have proved, the markets can and sometimes do move in a variety of different directions and anyone that tells you that they have developed a structure that guarantees returns should, politely, be treated with a really high level of scepticism.

As we move into the 2020s, the long-term future of the oil and gas sector seems less assured than it was a decade ago. There’s competitive pressure from increasingly credible renewable alternatives, challenges from regulators and significantly less warmth from investors. If oil and gas is going to maintain its central role in the global economy then it needs to evolve. One of the most efficient ways of achieving this would be through embracing technology.

The oil and gas sector is in an unusual position. It has a preeminent role in the global energy mix, and has a broadly effective supply chain that has evolved with the sector’s requirements over the last century. At the same time however, its position is being challenged by increasingly viable alternatives and the underlying inefficiency of its supply chain is drawing attention from regulators, investors and even consumers. If it is going to maintain its central role within the global economy, the oil and gas sector needs to change.

PermianChain Technologies

PermianChain harnesses blockchain technology to digitize, tokenize and monetize proven natural resources, starting with oil and gas.

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