Petroteq Energy Inc. announced a co-development agreement with First Bitcoin Capital Corp. in which the companies will develop a new supply chain management platform based on advanced blockchain technology to be used in the global oil and gas industry. Per the agreement, Petroteq and First Bitcoin Capital will share industry experience and financial and technological resources with the intent to develop and operate an enterprise-grade, blockchain-based platform that will enable oil and gas companies globally to conduct transactions.

The oil and gas industry is involved in an extensive global supply-chain that includes domestic and international transportation, ordering and inventory management and control, materials handling, import/export facilitation and information technology. A recent Deloitte industry report, titled, Blockchain: Overview of the Potential Applications for the Oil and Gas Markets and the Related Taxation, notes that transaction verification for product trades and transfers can be instantly verified across a network without reliance on a central authority, potentially reducing operating costs, more securely storing and managing data, and improving the speed of transaction processing on the blockchain. Technology executives in oil and gas companies can consider the following key areas in determining whether and how blockchain technology could be of benefit: Transparency and Compliance: Blockchain, by design, should enable greater transparency and efficiency.

Sharing digital blockchain information in joint-operating agreements could reduce, if not eliminate, the need for reconciliations between companies and for data hubs controlled by third parties. This could completely disrupt the current processes for balloting partners on new projects, performing joint interest billing, and reporting production revenue.