Big Oil Looks to Blockchain Technology

In a $2.7 billion crude oil industry, verifying ownership of commodities is important for business. The bill of lading is the document that does just that. But unlike other industries that have switched to higher tech for their documentation processes, big oil still uses the pen and paper method, and some oil companies want to change that. To cut costs and up productivity, companies are looking to online ledgers known as Blockchain. 

“In our business, you have people managing transactions all over the world,” said Souleïma Baddi, a managing director and Deputy Head of Commodity Trade Finance for Societe Generale in Switzerland. With a blockchain system, “people will perform their tasks immediately—directly on their phone or on their iPad where they do their job—rather than relying on others to collect the necessary paperwork.” 

Paper documents are more susceptible to fraud, and traders want to secure transactions in the future. “It will allow traders and everyone within an energy firm or within a bank to spend more time on the work that really matters,”[1] says Anthony van Vliet, ING Group’s Global Head of Trade Commodity Finance. 

[1] http://www.worldoil.com/news/2018/2/26/big-oil-buyers-ditch-paper-for-blockchain-to-track-tanker-sales

Follow us on social media for the latest updates in B2B!

Latest

How Teach for America Brings Diversity in Education to Houston Schools
August 12, 2022
Teach for America has been a cornerstone in creating more educators for the nation. The nonprofit founded in 1989 operates in more than two dozen regions across the country and introduces commitment Read more
The Tips Restaurants Need to Avoid Scammers and Extortionists
August 12, 2022
If restaurants didn’t already have enough to deal with during this pandemic, scheming scammers have cooked up an elaborate plot to target them with negative reviews. According to CBS News, there’s Read more
US Inflation Forecasts Marked Higher for 2023, Survey Shows
August 12, 2022
(Bloomberg) -- Economists boosted their inflation estimates for each quarter in 2023, a potentially worrying sign for Federal Reserve policymakers trying to keep price expectations anchored. The personal Read more