Petroteq Energy, a Canadian-registered company engaged in heavy oil processing and extraction technologies, has entered into a co-development agreement with First Bitcoin Capital to develop a new blockchain-based supply chain management platform for the global oil and gas industry.

Under the terms of the agreement, the companies will share industry experience and financial and technological resources to develop and operate an enterprise-grade, blockchain-based platform that will enable oil and gas companies globally to conduct transactions.

"Oil and gas companies could benefit from blockchain technology for a range of applications, from optimizing efficiency to transparency in business transactions to securely storing inventory data on the blockchain,” Greg Rubin, CEO of First Bitcoin Capital, said. “Blockchain is gaining traction and broader acceptance by oil and gas industry for its potential to fundamentally change the way certain transactions are conducted.”

The supply chain of the oil and gas industry includes domestic and international transportation, ordering and inventory management and control, materials handling, import/export facilitation and information technology. Blockchain technology, by enabling instant verification of product trades and transfers without any reliance on a central authority, would help reduce operating costs, securely store and manage data, and improve the speed of transaction processing.

According to industry experts, transparency and compliance, smart contracts, and trading and third-party impacts, are the keys areas which will help determine whether and how blockchain technology could be of benefit.

"As a company focused on the development and implementation of proprietary technologies for the environmentally safe extraction of heavy oils, we understand the importance of developing new technologies, especially blockchain-based innovations, to help companies in our industry to get competitive advantage and cost efficiency," says Petroteq CEO Alex Blyumkin.

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