Blockchain Talks in the Oil Industry
Word on the street (or rather, in the oil fields) is that a subsidiary of the colossal Sinochem Group is cooking up something big with Royal Dutch Shell and Macquarie Group. Yes, you heard it right! Discussions are underway regarding a blockchain platform destined to shake up the crude oil world, reportedly named “Gateway”.
The Price Tag of Innovation
The estimated value of this ambitious blockchain project is around 100 million yuan—or approximately $14 million. That’s a hefty sum! According to inside sources, these talks heated up back in July, so you know they’ve been hashing out some serious plans. But here’s the kicker: Sinochem Energy Technology is in a bit of a pickle financially and has set a deadline to bring in strategic investors by the end of September. Time is ticking and so is the wallet.
Why Blockchain? Why Now?
The move to employ blockchain technology in oil trade is fueled by the need for transparency and efficiency. Let’s face it; the oil industry has often been plagued by trade and settlement inefficiencies and the possibility of fraud lurking in the shadows. This new platform aims to reduce those risks, making the trade process smoother than oil running through a pipeline. Just imagine—fewer headaches, clearer transactions, and maybe even some happy energy traders!
A New Era for Energy Investments
This isn’t Shell’s first dalliance with blockchain. Earlier, they tossed some cash into a blockchain energy startup called LO3, which specializes in energy tracking. The plan? Convert their investment into LO3’s native XRG tokens, giving them access to an innovative distributed energy grid. Talk about a power move!
- Transparency in transactions
- Reduced fraud risk
- Cost savings of at least 30%
The Bigger Picture
Industry experts argue that the savings from blockchain applications—like swapping paper contracts for digital contracts—could save oil firms a whopping 30%. Consider this: With recent legal woes surrounding oil companies and allegations of market manipulation, blockchain technology could be a knight in shining armor, offering a way to rebuild trust within the sector.
“The oil industry players can save at least 30% by switching to blockchain,” says Andrew Bruce, CEO of American blockchain startup Data Gumbo. Nobody hates a discount, right?
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