Oil Demand to reach 100 million barrels per day — How the digitization of oil can help maintain liquidity, supply and demand.

We have had come across this quote in the past “Information is the oil of the 21st century, and analytics is the combustion engine” and today we will try to understand where and how does the PermianChain’s blockchain business-model fit into this vast ecosystem.

Before getting deeper into the technologies and use cases around the amalgamation of blockchain and analytics, lets first understand what is a blockchain. A blockchain is, in the simplest of terms, a time-stamped series of immutable record of data that is managed by cluster of computers not owned by any single entity. Each of these blocks of data (i.e. block) are secured and bound to each other using cryptographic principles (i.e. chain).

A blockchain network is, in most cases, a decentralized, distributed and serves as a digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network. The world of blockchain is ablaze with novel ideas.

So, what is so special about it and why are we saying that blockchain is a business-model enabler that has industry disrupting capabilities? We strongly believe in the “adapt and adopt” motto of our leadership who have brought the PermianChain to where it is today and who are filling a real industry gap with the use-case to bring-forth the digitization of oilfields [and hydrocarbons] assets into the wealth, savings and overall portfolios of the global market to benefit industry sustainability.

The PermianChain network serves as a permission(ed)-access trust-protocol to provide a shared and immutable ledger of hydrocarbon investments. Therefore, anything that is registered on the network is by its very nature transparent and everyone involved is accountable for maintaining its transparency.

The reason why the blockchain has gained so much admiration

• It is not owned by a single entity making it is decentralized;
• The data is cryptographically stored within the network;
• The blockchain is immutable, so no one can tamper with the data;
• The blockchain is transparent allowing participants to track the data;

The three main properties of the Blockchain which has helped it gain widespread acclaim are as follows:

• Decentralization
• Transparency
• Immutability

The three pillars of blockchain and how they relate on PermianChain’s platform

• Decentralization — Providing users access to an inaccessible asset-class by reforming hydrocarbon investments (in the form of digital assets);
• Transparency — Platform enabling global statistics of underlying assets with complete set of data registered and stored on a dedicated trust-protocol allowing users to track, trace and ascertain key performance indicators;
• Immutability — The function and nature of the trust-protocol disallows any change or manipulation in the stored data. The regulatory compliant framework restricts misleading information, imposes compliance standards to restrict unqualified users and allows for investments in hydrocarbons (i.e. oil) to be fairly traded.

Market Forecast Overview and our thoughts…

As per the reports from top consulting firms such as McKinsey, Bain, Statista and Big Oil companies such as BP, they predict a peak oil demand near 2030 and then a rapid decline in demand for oil [but the questions remain; how rapid will this decline be determining the future of oil industry?]. Regardless of the push for cleaner fuel, the share of natural gas in the primary energy mix will still be significant, at least for the next four to five decades. So, altogether the future of oil and gas industry still leads the global energy mix.

• Global oil consumption growth averaged 1.8%, or 1.7 million barrels per day … Coal consumption increased by 25 million tons of oil equivalent (Source: BP Statistic Review)
• The number of barrels of crude oil required to meet the energy demands of the growing population can be higher than the current levels. In 2010, global crude oil demand was 86.4 million barrels per day. In 2019, it is expected to increase to approximately 100.6 million barrels per day (Source: Statista).

To sustain our global energy consumption and the demand for oil globally there will be a need for renewable sources of energy, which are inevitably emerging to markets worldwide. With this in mind, the state of oil demand globally will not be effected as oil is the main source of energy for many industries and vertical sectors alike (i.e. cars, manufacturing, raw materials for food packaging products, etc..). The PermianChain solution expects to bring in newfound liquidity to the sector, allowing producers to maintain supply and providing a global community of qualified investors with their fair share of the industry’s growth and income generating potential.

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