Blockchain use could reduce costs in the oil market.
Mercuria CEO Marco Dunand, stated that they’re very interested in adopting the technology Blockchain for exchange marketing and products the company offers the oil sector, interacting with stakeholders in this technology. “I’ve seen sufficient bank presentations to believe the technology is there and it’s solid. And I believe we’re going to see a digital transformation of the oil and gas industry.”
Dunand speculated that blockchain-based payments could help significantly cut costs, he said: “[Brent, Forties, Oseberg, Ekofisk] for instance is a market that has a limited amount of participants, that requires a reasonably solid balance sheet. You could see this type of market going to blockchain payments within the next 12 months,” Dunand said. “We think this could reduce costs, certainly on payments, by 30 percent.”
Adoption won’t happen quickly unless more firms come together to collaborate on the development of any future blockchain networks tied to the oil market. “We could adapt it fast, but you need a certain amount of participants in the industry to get it going,” he told attendees.
There are many companies in the world that have begun to apply the technology to its Blockchain conventional daily operations in order to reduce costs, improve the functioning of their markets and integrate technological innovation.
Mercuria Energy Group Ltd is a privately held Swiss international commodity trading company active over a wide spectrum of global energy markets including crude oil and refined petroleum products, natural gas (including LNG), power, coal, biodiesel, carbon emissions, base metals and agricultural products. In 2014, the company bought the commodities trading arm of J.P. Morgan in a reported US$800 million deal.
It is one of the world’s five largest independent energy traders and asset operators and is based in Geneva, Switzerland, with 28 additional offices worldwide.
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