Oil Industry Exec Bullish on Blockchain – Says Could Save 30 Percent in Savings

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The head of one of the world’s largest oil commodity traders, Swiss company Mercuria, says that adoption of Blockchain Technology will take place in the oil and gas industry over the next two years. 

“We think this could reduce costs, certainly on payments, by 30 percent,” stated Marco Dunand, chief executive of Mercuria in a report by Reuters by journalist Amanda Cooper. 

“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,” he told the Reuters Commodities Summit.

Dunand added he believes a key part of the Brent market that helps to set the global benchmark price for oil could be making regular use of Blockchain payment technology, provided enough participants agree to employ it.

“BFOE [Brent, Forties, Ekofisk and Oseberg, four physical crude oils] for instance, is a market that has a limited amount of participants that requires a reasonably solid balance sheet,” Dunand said. “You could see this type fo market going to blockchain payments within the next 12 months.”

Samburaj Das  from Cryptocoinnews reported:

Blockchain has already seen use cases in commodities trade finance. A recent real-world proof-of-concept endeavor demonstrated a trade finance transaction which saw cheese and butter exported from an Irish agriculture co-operative to a Seychelles-based recipient.  In November 2015, Kynetix, a post-trade technology company announced a consortium of 15 commodities industry participants that will seek to develop blockchain solutions for the industry.

About Richard Kastelein

Founder, Publisher and Editor in Chief of industry leading online publication, Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC. Kastelein is also an advisor with a number Blockchain startups doing ICOs including Humaniq.co where hs is interim CMO, DECENT.ch, Inchain, Chronobank, eGaas and others. He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List.

As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven, Bucharest, Nairobi, Tel Aviv, Manchester, Brussels, Barcelona etc, where he helped spread the cause for Blockchain technology and cryptocurrency and, consequently, has built a notable network in the scene.

He’s also a director of a Dutch foundation called The Hackitarians and has run innovation events in London, San Francisco, Berlin, Amsterdam and other cities around the world on topics such Blockchain, Health, Energy, Internet of Things, AI etc.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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