Block chain technology can subvert the oil industry

nnnIn the current situation, although the oil industry in the block chain is not particularly active in the application, but the relevant enterprises and even the government has recognized the technology can bring a variety of benefits for the industry, there embracing block chain the trend of. This article examines how the chain chain will bring about changes in the oil industry, highlighting the advantages of the technology, and portraying the blueprint for the future of the oil industry.n
nnTranslated by: Inan
nAs oil prices remain between $ 40 and $ 50, all small players in the oil industry are struggling to cut costs and simplify sales.n
nFor a long time, the oil industry has been very active in a variety of technologies, in recent years to achieve a great development, but also to break even break even the lowest, but the industry has overlooked one of the most important development of this century, Block chain technology.n
nWhat is the block chain technology?n
nThe block chain is the key technology behind the popular Bitcoin, which is a centralized database. Information is distributed throughout the network, rather than by a single computer or data platform, which makes it vulnerable to malicious attacks. Its records are public and can be easily verified by anyone. Each transaction is stored on a block, and each block contains a timestamp and links to the previous block. If you want to change or remove the information, you must also do the same for the subsequent blocks. The block chain acts as a complete record of all transactions on the chain, visible to everyone.n
nSome of the supporters of the block chain technology compared it to the Internet in the 1990s, pointing out that despite the need for the technology to solve problems, it will certainly affect almost all industries in some way. Although the impact of these “distributed books” remains to be achieved, but one thing is clear, that early adopters will undoubtedly grab the initiative.n
nAs finance and technology have entered a new era, the efficiency of the banking industry and its confidence in it may be at historically low levels. Many financial institutions are competing to find solutions to reduce errors, speed up transactions and provide greater transparency to meet customer requirements. Which makes the financial sector began to use smart contracts and distributed books. The development of block chains is fast. In fact, IBM expects 65% of the major banks to use block-chain technology in some way over the next two years.n
nBlock chain technology has been used for bond transfers, remittances, fraud reductions, payment processes and trading platforms. The deal is handled more quickly and safely, saving millions of business costs for banks.n
nThe biggest impact that the technology may have on banks is the KYC process, where banks verify customer identities and prevent money laundering, corruption and terrorism. The financial sector will spend between $ 60 million and $ 500 million a year to meet these requirements. The block chain is a public book, the transaction is more transparent, so you can more easily access the information, and does not take a long time.n
nThese findings even make governments in-depth study of block-chain technology.n
nAccording to another IBM recent study, 90% of government agencies said they would use or at least test block-chain technology by 2018. The new technology will be adopted by the government in a shocking way. The distribution of social services, contract management, compliance, identity management, and even voting and taxation will be significantly affected.n
nThe technology has also received widespread attention in the world’s largest oil production area. Members of the Gulf Cooperation Council (GCC) are competing to use block-chain technology, where the UAE is in a leading position.n
nDubai launched the Dubai Block Chain Strategy, which aims to use block-chain technology in all government agencies by 2020. “We are responsible for developing Dubai’s responsibility to ensure that this emerging technology is shaped and made available in a way that is truly suited to the needs of the city,” said Dr. Aisha bin Bishr, Director General of Smart Dubai Office. With this technology, Dubai can only save $ 15 to $ 200 billion per year on bank transactions, and land contract management, payment collection and business registration and licensing will further improve efficiency, which will drive the city’s financial and technological future.n
nHowever, the most notable subversion may lie in the intersection of public and private sectors.n
nOil industryn
nThe oil industry is at a crossroads of change because people are demanding more and more efficient and transparent. The industry still uses paper contracts and outdated trading platforms, while distributed books and smart contracts can help them enter the digital age. Although the impact of the technology on the oil industry does not seem to be as large as underwater oil drilling or robotic-powered power grids, it will save a lot of money for its retrofitting.n
nOne of the biggest effects of this technology on the oil industry is the way oil and oil futures are traded. Today, large quantities of oil are traded by producers, suppliers, contractors, subcontractors, refiners and retailers, and attempts to track real-time transfers of crude oil are often futile. With the block chain, the trade fair is conducted immediately, allowing everyone to track transactions, thereby reducing costs, stabilizing prices, and providing unprecedented high levels of transparency. Swiss energy trade giant Mercury (Mercuria) CEO Marco Dunand pointed out:n
nn”The energy industry must gradually strengthen the digitalization of oil production, refining, transportation and other areas, so traders must also participate in the use of block chain can achieve ownership from the buyer to the shipper and then to the seller’s transfer, do not need a lot of bill of lading documents.n
nnThere are many other benefits.n
nThe oil and gas industry is subject to strict regulation, and law enforcement agencies may be difficult to track it, but with block-chain technology, all data is protected and can be easily accessed at any time. This is an advantage for regulators, because it will help them to maintain the inspection of large oil companies, which will become a huge leap in the industry. This type of data sharing provides better communication and greater transparency for global cooperation that often complicates litigation and long legal processes. In addition, shareholders will be able to accurately track the industry, so as to make more rational decisions on investment.n
nin conclusion n
nIn such a globally associated economy, the transition to block-chain technology will have a profound impact, which will make all sectors change, especially in the oil industry. Everyone will be able to get real-time production data for free. People can easily chase regulatory compliance. The data will be shared seamlessly between the joint ventures. The time to reach the agreement will be greatly reduced. The most important may be the disappearance of the number of intermediaries, thereby reducing the cost of each division of the industry.n
nEven if the oil industry in the use of the technology some backward, but this phenomenon is bound to appear. Oil prices are difficult to stabilize, the industry seeks to reduce costs, consumers demand to improve transparency, this new technology can become the answer to solve these problems?n

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