In the past, it was common for multinational oil companies to work in isolation or with limited levels of integration. However, POPs are now looking at new partnerships and alliances to counter volatile prices and challenging market conditions. In addition, they are adopting unconventional strategies like partnering with non-traditional suppliers, exploring commercial collaborations within the industry, and joining forces with Bitcoin. Begin trading oil with the Öl profit app today and become a part of the trading adventure!
Ultimately, they are striving to create a more agile organization that can quickly adapt to suit changing market conditions while continuing to generate healthy profits. It is a proactive measure to protect profits and maintain high returns.
The industry’s most prominent multinationals have been hiring complex supply chain specialists for many years. It is especially true of the oil majors, who are looking at this paradigm shift as an opportunity to develop new models and improve their effectiveness in response to the current challenges in the energy industry.
Many of these companies have already turned their attention to blockchain technology, which can alter how transactions are recorded so that all parties involved will benefit from it, depending on how it is implemented. For example, institutional investors from China recently signed an agreement with ExxonMobil for exploratory work in this sector.
How hard will it be to implement blockchain technology in the oil industry?
Although there are currently several different blockchain applications in the oil and gas industry, the main challenge is identifying those that offer real value to producers, suppliers, and consumers alike.
The winners in this hotly contested exploration space will likely be companies who can combine the newest technology with their existing systems and skillsets to stay one step ahead of their competitors. Companies like BP are already taking an active role in this regard.
BP has just launched a new exploration platform where firms can trade oil directly using blockchain technology. More specifically, it’s a blockchain-based trading system that allows users to trade digital oil directly on a peer-to-peer basis. It also integrates with several third-party systems to ensure transparency and data verification.
BP also works with other energy majors like Royal Dutch Shell and Statoil. They are all using the same blockchain technology. They hope to improve liquidity in the energy market and remove some of the barriers that often complicate these types of transactions.
BP’s digital oil trading experiment is currently limited to many unnamed companies that have expressed interest in the platform. However, BP hopes to grow this pilot project over time as it progresses toward a broader launch sometime next year.
North American mining partnership:
Another way the oil industry is working to combat the adverse effects of volatility is through joint ventures between companies and start-ups. For example, the world’s largest producer of natural gas, ExxonMobil, recently joined forces with a U.S.-based blockchain start-up called Neumann Ventures. This joint venture will enable oil and gas firms to work with each other more frequently to advance their business models without incurring substantial capital costs for new development projects.
The deal is significant for both companies because users often complicate this collaboration between large corporations due to varying risk tolerance levels and legal requirements. However, with this innovative start-up on board, both companies can make the most of their expertise and resources to focus on a shared goal. The hope is that these joint ventures can help improve oil prices, which have been trending downward for years.
The current trend:
Many major oil companies are also focused on partnering with non-traditional suppliers in the petroleum industry. This trend is well underway thanks to several innovative start-ups doing more than just embracing blockchain technology; they’re attempting to transform the industry entirely.
One such company is BTL Group, which has developed a platform called Interbit that uses blockchain technology to connect utilities and consumers. Interbit aims to help energy companies improve how they buy and sell gas and perform other similar functions.
This start-up created a decentralized system where companies can trade their goods and services using cryptocurrencies. It also provides liquidity to these tokens using smart contracts, which means that it’s possible for these platforms to continuously change the prices of their products thanks to automated transactions.
It is an important development for large oil companies like Saudi Aramco, which is reportedly interested in integrating Bancor’s blockchain technology into its platform to make transactions more efficient overall. The oil-rich kingdom is also working on other initiatives to increase its digital transformation, including a partnership with the MIT Media Lab to develop a Saudi blockchain ecosystem.
The future:
Significant oil majors are keenly aware of the need to revamp their corporate structures in response to how global energy markets are evolving. By working with blockchain platform developers, they can generate fresh ideas and access new technologies while improving their operating efficiencies. The goal is to stay ahead of the curve and ensure that they remain profitable in all types of market conditions, including periods characterized by high volatility.
