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Blockchain could make a big leap into the global supply chain of large oil companies.
VAKT, a London-based blockchain company that tracks physically traded commodities, is seeking to make such a move by collecting primetime partners in the oil industry. Already Royal Dutch Shell (RDS.A) (RDS.B) Equinor (EQNR) and Stock of the Day BP plc (BP) are seeking to strengthen their supply chains with technology.
"The launch in our first market with such high caliber users is a transformational moment for us and for industry," said VAKT CEO John Jimenez. "But it's only the beginning: the success of a blockchain solution depends on widespread adoption and we are not looking forward to seeing the ecosystem grow".
The technology will track contracts and allow each of the consortium companies to follow the same register.
"Digitization is changing the way the energy value chain works, it's an exciting time," said Andrew Smith, EVP Trading & Supply, Shell International Trading and Shipping Company Limited. "Collaboration with our colleagues and some of the industry's key players is the best way to combine market expertise and reach the scale needed to launch a digital transaction platform that could transform the way we all do business. the goal is to improve speed and safety, which benefits everyone along the supply chain from market operators to customers. "
In fact, the adoption of the blockchain has helped other industries to control supply chain management, particularly Walmart (WMT), which has used blockchain for its green monitoring. The need for a company like Walmart to employ blockchain throughout its company could provide a model for the oil industry.
In fact, the adoption of the blockchain has helped other industries to control supply chain management, particularly Walmart WMT, which used blockchain for its green monitoring. The need for a company like Walmart to employ blockchain throughout its company could provide a model for the oil industry.
"Every time there is a collection of actors who need to work together but do not trust each other, this creates a confidence gap, everyone wants to keep control of the data", Kevin Werbach, a professor of business ethics and law firms at the Wharton School of Business at the University of Pennsylvania, said Real Money. "This leads to all kinds of errors and inefficiencies".
To learn more about the impact of the nascent blockchain technology among traditional industries, check Real Money coverage of all oil industry news and BP Stock of the Day, after the G20.
