Several countries in the world’s biggest oil producing regions are moving to adopt Blockchain technology in their operations. In Gulf Cooperation Council (GCC) countries, the race to adopt the technology is being led by the United Arab Emirates (UAE).
According to Smart Dubai Office Director General, Dr. Aisha bin Bishr, they are making sure that the novel technology will suit the city’s requirements:
“We’re taking the responsibility here in Dubai to make sure that we shape this nascent technology and make it happen in a way that really suits [the] city’s needs.”
Blockchain’s prospects in the oil industry
In the oil industry, Blockchain is being considered as a possible solution to stabilize oil prices.
The adoption of the technology in the sector is expected to satiate the demand for efficiency and transparency by the majority of industry players.
The implementation of smart contracts and distributed ledgers is also expected to propel the sector into the digital age.
According to Swiss trading major Mercuria CEO Marco Dunand, the adoption of Blockchain technology will greatly reduce the massive paperwork in the energy sector.
“The energy industry will have to digitalize more and more in oil production, refining and shipping. So traders will also have to participate. It is a pre-archaic process. So introducing Blockchain will allow passing title from buyer to shipper to seller without going through the massive paperwork of bills of lading.”
The technology is also expected to facilitate the implementation of regulations in the industry.
As Blockchain increases the security and accessibility of transaction data, a new level of communication and transparency in global partnerships will emerge. This will nearly eliminate the complicated lawsuits and lengthy legal processes that are usually seen in such collaborations.