I'd been wondering when this industry was going to finally step into the light of blockchain - probably should have guessed the Netherlands would be a starting point. I know BP already mentioned of experimental trials for the same trading supply chains, but there are just so many applications the industry could look at improving through blockchain tech; compliance comes to mind.
Oil and gas has always been one of the highest at-risk when it comes to AML and bribery, though I suppose simple trading costing would be the safe launching pad. This way, the actors sees it as foundational, rather than disruptive tech, something a vastly traditional industry will resist. Brent will probably lead the pack in blockchain adoption, but certainly not earlier than 2020.
Topic: [2017-11-06] BP, Shell Lead Plan for Blockchain-Based Energy Trading Platform (Read 1923 times)
November 06, 2017, 12:13:58 PM
November 06, 2017, 05:54:33 AM
This is another industry that blockchain can really be useful. We all know that this industries involves a lot of data information transfers among nations. And I agree that it gonna be 100% accurate will no potential data lost along the way. And I'm glad that they saw blockchain as the emerging technology that can truly bring data seamlessly and effortless and we all know that data is very information for large industries such as the energy sector.
November 06, 2017, 05:45:35 AM
(Reuters) - A consortium including energy companies BP and Royal Dutch Shell will develop a blockchain-based digital platform for energy commodities trading expected to start by end-2018, the group said on Monday.
Other members of the consortium include Norwegian oil firm Statoil, trading houses Gunvor, Koch Supply & Trading, and Mercuria, and banks ABN Amro, ING and Societe Generale.
Blockchain technology, which first emerged as the architecture underpinning cryptocurrency bitcoin, uses a shared database that updates itself in real-time and can process and settle transactions in minutes using computer algorithms, with no need for third-party verification.
Mercuria has been a vocal advocate of implementing blockchain technology to significantly cut costs in oil trading.
"Ideally, it would help to eliminate any confusion over ownership of a cargo and potentially help to make managing risk more exact if there are accurate timestamps to each part of the trade," said Edward Bell, commodities analyst at Dubai-based lender Emirates NBD PJSC.
Similar efforts for an energy trading platform have failed to take off, Bell said, but added this latest bid with backing from BP and Shell and the banks, "may have more success than if it were an independent party trying to convince oil and gas companies to make use of it."
The new venture is seeking regulatory approvals and would be run as an independent entity, the consortium said in a statement.
"The platform aims to reduce administrative operational risks and costs of physical energy trading, and improve the reliability and efficiency of back-end trading operations...," the statement said.
Source: https://www.nytimes.com/reuters/2017/11/06/business/06reuters-energy-blockchain.html
Other members of the consortium include Norwegian oil firm Statoil, trading houses Gunvor, Koch Supply & Trading, and Mercuria, and banks ABN Amro, ING and Societe Generale.
Blockchain technology, which first emerged as the architecture underpinning cryptocurrency bitcoin, uses a shared database that updates itself in real-time and can process and settle transactions in minutes using computer algorithms, with no need for third-party verification.
Mercuria has been a vocal advocate of implementing blockchain technology to significantly cut costs in oil trading.
"Ideally, it would help to eliminate any confusion over ownership of a cargo and potentially help to make managing risk more exact if there are accurate timestamps to each part of the trade," said Edward Bell, commodities analyst at Dubai-based lender Emirates NBD PJSC.
Similar efforts for an energy trading platform have failed to take off, Bell said, but added this latest bid with backing from BP and Shell and the banks, "may have more success than if it were an independent party trying to convince oil and gas companies to make use of it."
The new venture is seeking regulatory approvals and would be run as an independent entity, the consortium said in a statement.
"The platform aims to reduce administrative operational risks and costs of physical energy trading, and improve the reliability and efficiency of back-end trading operations...," the statement said.
Source: https://www.nytimes.com/reuters/2017/11/06/business/06reuters-energy-blockchain.html
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