Blockchain implementation reaches another major industry this week with the announcement that S&P Global Platts has adopted the technology for reporting oil inventory and storage data.
S&P Global Platts is an information provider focused on petroleum, natural gas, oil, and other energy commodities. Headquartered in London, the company is the leading independent provider of information, benchmark prices, and analytics for the energy and commodities markets. The implementation of blockchain in this case will streamline the submission of oil storage and inventory reports to Fujairah Oil Industry Zone (FOIZ).
FOIZ holds the greatest commercial capacity for refined oil in the Middle East and the automated reporting through blockchain technology will reduce the need for the regulating body FEDCom to carry out manual inspections. As with other industry applications of blockchain, this process will save time and prevent human error in reporting.
The new reporting process will allow Fujairah’s terminal operators to report their data and inventory on private channels through smart contracts. When FEDCom receives the data, it returns another smart contract to the company’s public channel. According to James Rilett, Senior Director of Innovation and Digital Strategy at S&P Global Platts, the blockchain system of reporting “represents a first for oil markets by offering a full blockchain deployment to provide market participants with data that is increasingly critical in the region and to the global oil markets.”
Developers at FOIZ are enthusiastic about the progress. They see this innovation as a path to the forefront of technology and security, pushing Fujairah into the global spotlight for trading.
S&P Global Platts now joins the ranks of other major companies including IBM, Dutch bank ING, and Walmart, who are in the process of implementing blockchain technology to increase security and efficiency in a global market.
Featured Image: Fuel Barrels By Trevor MacInnis, via Wikimedia Commons