The ten benefits of the PermianChain (Part three)
The natural resources sector has reached a fascinating juncture. Oil and gas are the dominant forms of energy across the planet, supported by a vast global supply chain. New technologies are changing what is possible however, and it is perhaps time for the sector to look at how it operates and ensure that it is as efficient as possible.
This is a set of four linked articles. The first article offered a brief, non-technical explanation of the blockchain, while the second looked at the first three potential advantages of its application in the oil and gas sector from the perspective of the PermianChain. In this article we will look at four more advantages.
4. A better understanding of the pressure points
The availability of transparent data created by a blockchain-based structure would also mean that the industry as a whole would be able to have a wider understanding of its pressure points, and could take steps to alleviate them.
The level of complexity in the current environment means that people tend to focus on their own, generally limited, view of the industry and sharing best practice can be challenging.
The enhanced transparency of the structure being developed by PermianChain will make it far clearer where the pressure points are, and it would become more likely that these could be alleviated by a mixture of competitive pressure and industry discussion.
Contracts will be traded on the PermianChain using PermianChain’s native token. This will create a global oil and gas trading network with transparent, up-to-the-second ownership rights, giving everyone involved in a project a single point of reference that explains what stage has been reached, who is responsible for the next step and what the probable time frames are.
5. Less wastage
As we’ve discussed in our articles previously, it will also become clearer where oil and gas is being wasted during the process of moving it from where it is in the ground to where it is sold to consumers. If 100 barrels are drawn from a well and tracked via a blockchain, but only 80 barrels arrive at the refinery, it becomes significantly easier to investigate what happened to the lost barrels, identify if there is a problem and potentially fix it.
6. Less opportunity for graft
Similarly, it becomes easier to spot where barrels are metaphorically falling off the back of lorries and disappearing into the more shadowy parts of the economy. Public organisations such as oil ministries will also be able to understand, manage and monetise their potential oil and gas reserves more effectively.
Taking this approach could help tackle liquidity requirements, reduce government deficits and have positive implications for the whole society of a nation that has natural resources.
7. Add value earlier in the process
On a related note, assigning a value to a potential oil or gas reserve through the PermianChain platform and token will also mean that the value of oil and gas can be realised far earlier in the project’s progress than is currently the case.
In short, with the PermianChain, oil and gas contracts could have a value at a far earlier point in a project, which could help upstream companies manage enjoy a far more stable and consistent income. The whole sector would ultimately benefit from more stability across the entire supply chain.
In the final part of this four-part article, we will discuss three more benefits of moving the oil and gas sector onto PermianChain’s blockchain-based infrastructure. You can read it by following 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.