PTAC webinar: An overview of PermianChain for oil and gas teams, investors and bitcoin miners

It would be difficult to understate the challenges facing the oil and gas sector, even before the Covid-19 pandemic. With the collapse in demand, the survival of many organisations could depend on whether they embrace innovation. Petroleum Technology Alliance Canada (PTAC) hosted an open PermianChain Technologies webinar on April 21 to discuss a promising approach that could help organisations reduce costs, attract investors and create new revenue streams.

The webinar, which was held for communications and educational purposes only, was an opportunity for PermianChain’s leadership team to explain the development of the company, how its platform works and how the blockchain could be used to reduce waste and costs and increase efficiency and profit across the natural resources sector.

Mohamed El-Masri, PermianChain’s founder, explained how the platform, which is technically described as a Blockchain Platform as a Service (BPaaS), utilises blockchain technology to bring oil and gas and potential oil and gas investors together in a way that is far easier and cheaper than has been possible in the past.

“We have created a platform for oil and gas companies that helps with the funding challenge that many oil and gas organisations face by making it possible to work with exempt market participants in a more simple way,” he observed. “We are also helping with the market challenge, because even before Covid-19, the volatility of prices meant that it was very difficult to sustain oil and gas operations even when a project had proven reserves.”

Listen to the full presentation

The PermianChain approach reduces funding challenges by turning a stake in oil and gas reserves into a primary digital security, using the blockchain to tokenise the securitisation process simply, efficiently and transparently. This means that oil and gas firms can enjoy continuous capitalisation with real time, automated functions that keep administration costs low. PermianChain streamlines the direct investment process, suggests El-Masri.

The webinar also looked at another aspect of the PermianChain offering: a simple way to turn stranded gas into a revenue stream for oil and gas projects. “The cost of setting up gas pipelines can make it difficult to avoid waste, and there are also regulations in place that limit flaring,” he said. “We have developed a way of putting server units on site at oil and gas projects, powering them with electricity that’s converted from gas that would otherwise be wasted and then giving technology firms access to the available processing power.”

According to El-Masri, major technology firms have been using a similar technique very efficiently and to great effect for the last three years, but this is the first time that it is being offered at a smaller scale. It would mean that bitcoin mining operations could invest in oil and gas projects by buying tokens and enjoy access to server resources in return.

“This all sounds complicated, and it is if you try and do it yourself, but we have learned a great deal as we have developed. We have a working proof of concept in place, and we are making it simple for oil and gas organisations, investors and technology firms to work together in a way that everyone benefits,” El-Masri said. “The significant challenges facing the sector mean that this is the time to have open mind and innovate. We are offering a product that delivers income, offers manageable risks and does not tie organisations into long holding periods.”

The team at PermianChain would like to thank PTAC for hosting the event and would welcome questions from the oil and gas and technology communities.

PermianChain Technologies is a pioneer member of the Blockchain Research Institute and a startup member at the Petroleum Technology Alliance Canada (PTAC). 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.

PTAC is a Canadian hydrocarbon industry association that serves as a neutral non-profit facilitator of collaborative research and development, and technology development. It operates in partnership with all industry stakeholders to transform challenges into opportunities. By effectively leveraging financial resources and technical expertise through our proven model, PTAC supports collaborative networks which advance innovative R&D and technology development projects that address pertinent industry challenges through activities which reduce costs, improve operational efficiencies, enhance environmental stewardship, advance regulatory development, and provide our industry with the social licence to operate.