Oil and gas supply chains involve a multitude of oil and gas operators, who often operate in multiple countries. Moreover, you will get live customer support. The consortium will be an open-source blockchain platform with significant potential to streamline the cost-intensive operations of today’s supply chain networks. If you are looking for a trusted platform to start oil trading, you may check öl profit de and sign up.
Its participants are Chevron Corporation, Shell Exploration & Production Company, B.P. plc, ConocoPhillips Company (USA), Imperial Oil Limited (Canada), ExxonMobil Corporation, and Total S.A.
It is expected that the collaboration will reduce friction within the industry and increase cost savings for companies through more efficient operations on a global scale. Blockchain technology is ideal for the energy sector, where security and efficiency are paramount.
Because blockchain enables secure, permanent data sharing across organizations within a network, it can lead to significant cost savings through improved process efficiency. Let’s get into detail about this consortium.
The All New Consortium with Seven Oil and Gas Major:
Chevron Corporation and Shell Exploration & Production Company have joined forces with ExxonMobil, B.P., and Total to develop a new open-source distributed ledger solution for use within the oil and gas industry.
The consortium launched in July 2019 and is managed by a non-profit foundation called the Blockchain Research Institute (BRI). It is expected to be one of the largest blockchain consortia in the energy industry.
The consortium members are working on a joint whitepaper that lays out their plans for establishing a Blockchain-as-a-Service platform managed by ConsenSys, an enterprise blockchain solutions provider. They will also consider other open sources of blockchains such as hyper ledger Fabric, Quorum, and Ethereum.
The consortium will use a blockchain network designed for the energy industry. The All New Consortium was formed to develop an open source, enterprise-grade platform based on a private permissioned Ethereum network, which will act as a collaborative space where energy companies can innovate, develop and grow.
Both B.P. and Shell already have active blockchain technology projects, with B.P. working on a system for easier tracking of fuel products used in vehicles and Shell working on “digital contracts” in collaboration with Microsoft Azure.
Why are Oil Majors adopting blockchain technology?
The consortium will introduce a private permissioned blockchain operating system to the energy industry. The first use case will simplify contract management, maintenance, and repair agreements expiry dates, and regularized proactive operational activity checks.
The consortium is expected to significantly reduce the risk of cyber-attack by maintaining data on a distributed ledger platform instead of in individual master databases. Once changes are made within the blockchain system, these changes are easily broadcast across the network and recorded in multiple databases at any time.
It allows verification of operations in real-time, which has been proven crucial to protecting against cyber-attacks on computer systems, including smart cards that can control access in various industries.
Features of blockchain that make it ideal for the oil trading industry:
Cost savings – All the information required to streamline supply chain operations is currently stored on thousands of individual spreadsheets and databases. It can result in unnecessary duplication of work and consequential costs for companies that don’t have a complete picture of their supply chain’s status.
Security – Many large oil and gas companies are placing their oil and gas assets into a Smart Contract to increase security. The distributed ledger platform can manage all data that are being managed by such intelligent contracts. In addition, the blockchain platform allows all entities within the network to share nearly identical data on a single distributed ledger, making it virtually impossible for anybody from outside the network to gain access to sensitive data.
Efficiency – The consortium members have confirmed that they are working on a private permissioned Ethereum network, which will be entirely managed by ConsenSys, an enterprise blockchain solutions provider. It will allow the consortium to access a tailor-made blockchain network most suitable for their needs, reducing operational costs for companies looking to implement the technology.
Optimized agreement – Currently, exportation, supply, and trading agreements are held on multiple databases and spreadsheets. Once two parties enter into these agreements, it must be broadcast across numerous systems to be officially documented and allow for future updates.
Because blockchain technology is decentralized, such transactions can be securely recorded in any part of the network at any time. It will be highly efficient to have all transactions recorded on a single technology platform, which the consortium aims to do. The upcoming projects will reduce costs by creating intelligent contracts between companies along an oil supply chain.