The ten benefits of the PermianChain (Part one)
We’ve looked at several aspects of the oil and gas sector over the last few months as well as discussing the development of the blockchain and other technologies and how they will impact the extraction, processing, transportation and retailing of natural resources. It is now time to take a detailed look at the benefits of PermianChain’s proposed enhancements to the way that the oil and gas sector operates. This is the first of a four part article that looks in detail at the benefits of PermianChain’s blockchain-based approach to renewing structure of the oil and gas sector. We will start by explaining the blockchain itself before moving on to explain the ten benefits that PermianChain’s approach will deliver.
Where we are today!
It’s fair to say that the oil and gas sector is colossal, operating around the world, moving natural resources from where they are in the ground, refining them into something that can be used and then transporting them to where they can be sold. This is done in a variety of ways according to the type of oil or gas and what it is needed for.
One of the big challenges for the oil and gas sector is efficiently managing supply, knowing what is where in the supply chain and managing it in a way that keeps supply constant, minimises storage costs and keeps prices relatively consistent.
Keeping track of resources in this way would be virtually impossible using traditional, paper-based record keeping. Paper, faxes or even emails would never be able to move through the administrative processes to keep up. As a result, what we currently have is a lot of natural resources being moved around the world and stored for when they are needed. It’s a costly and inefficient approach.
Redefining what’s possible…
PermianChain’s innovative application of the blockchain would change this.
Broadly speaking, a blockchain is the technology that sits behind cryptocurrencies, offering dynamic, secure, proof of ownership for an individual coin or token. There are many detailed technical explanations of the blockchain available, but at the risk of oversimplifying, think of it as a global spreadsheet that is distributed across multiple sources that authorised parties can amend. Because it is decentralised and every version of the spreadsheet must match before new information can be added, it is secure. That fact that it is spread across so many sources also means that it would be very difficult and exceptionally time-consuming to falsify.
What this means is that if I say I own something that has a token associated with it, everybody else in the market can be confident that it is indeed mine because my ownership is verified at multiple points. The history of the token is also transparent, so it is easy to see how I got hold of it, who owned it previously when and where it was created and any other relevant information.
While cryptocurrencies have commanded the attention of the world’s media, regulators and governments, the potential of the blockchain has come to be recognised by innovators around the world, as well as many of the most established companies spread across a range of industries.
The reason for this interest is relatively simple: blockchains do not need to be a way to create and store value for cryptocurrencies alone, they can be used to create and store the value of pretty much anything. They are transparent and relatively simple to use, so once they are set-up they can be used to manage a market in pretty much anything, whether it is gem stones, antiques, high-performance cars or cases of wine… or reserves of oil and gas.
Over the next three articles, we are going to examine the implications of the blockchain from an oil and gas perspective, explain how PermianChain plans to implement it, and highlight the ten main benefits. To read the next part, follow this link.
PermianChain Technologies is a pioneer member of the Blockchain Research Institute. 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.