Efficiency, transparency and making the most of what’s available: How PermianChain is changing the oil and gas sector
The oil and gas sector is in a state of change. Improvements in technology are making alternative sources of natural energy economically viable. At the same time, artificial intelligence is enhancing geological techniques by making it possible to analyse datasets more quickly and in more detail than ever before, giving us a better understanding of global reserves and the likely cost of extraction. The rise of blockchain also has the potential to make a key difference to the sector, delivering new efficiencies, adding liquidity and helping make the most of the natural resources that we have available.
Shale gas, tight oil, oil sands, and coal seam gas are all becoming part of the global energy mix and have led to a rapid change in the market, most notably with the US’ move to switch from being a net importer to net energy exporter.
The rise of these new energy sources creates a unique opportunity to enhance oil and gas trading. It’s an opportunity that should be seized now before these new sources of energy become business as usual, a point at which existing market inefficiencies become entrenched.
PermianChain uses the blockchain to tokenise oil and gas reserves, letting people trade oil and gas in a way that would have been inconceivable even five years ago. Tokenising natural resources at the earliest stage of a project’s development circumvents a significant proportion of the administrative and brokerage costs, meaning that it becomes viable for far smaller investors to participate in the natural resources trading markets.
The oil and gas sector has traditionally been opaque. It can be very difficult to find projects to support without the use of a broker, which adds significant costs and makes investment only viable if you are trading at significant scale.
The PermianChain will provide a platform where oil and gas firms can find potential investors and give them a better understanding of the potential value of a field or project. It also underscores the operating firm’s commitment to transparency and efficiency.
By listing potential natural reserves transparently on the blockchain, the PermianChain will also help public organisations such as oil ministries and oil producing countries monetise their potential reserves, tackling liquidity requirements and reducing government deficits.
Making the most of what is available
The process of moving an oil and gas project from exploration to extraction to refining to delivery is exceptionally long and involves a complex web of experts, contractors, regulators and investors.
By tokenising an oil and gas project at the earliest possible stage of its development, PermianChain creates a new, earlier source of income for companies involved in a project. This can help companies redefine what represents a viable project and change the complexion of the sector by giving more certainty to third parties.
As well as being significantly more efficient, PermianChain will make it possible to prove the source of reserves and reduce, or even eliminate, smuggling and illegal activities.
There is another element to the way that the PermianChain is helping the oil and gas sector make the most of what it has available. Working on oil and gas campaigns requires data analytics and simulation. The use of graphic processing units and high-performance computers are essential to enhancing data mining from field operations, but that comes with a significant power requirement.
We are powering servers using stranded and/or flared natural gas. This means that we are simultaneously delivering massive enhancements in business efficiency and making good use of natural resources that would otherwise be simply burnt off.
If you would like to learn more about PermianChain and how it is setting out to revolutionise the oil and gas sector, get in touch via our social media channels.
PermianChain Technologies is a pioneer member of the Blockchain Research Institute and a start-up member of the Petroleum Technology Alliance Canada. PermianChain is investigating ways to harness the power of blockchain technology, data science and artificial intelligence to digitize, tokenize and monetize proven but undeveloped natural resources, starting with oil and gas. The PermianChain, which already has secured oil and gas reserves to be listed on its platform, intends to unlock liquidity to revolutionise the way that oil and gas reserves are funded, produced, bought and sold on a permissioned-access blockchain. The firm is currently in the process of applying to for its regulated digital securities trading and investment platform.