True to popular form, as there have been many previous trials on how to improve supply chain transactions through various industries with use of the blockchain, so it comes as no surprise to finally be witnessing the first attempts for tracking crude oil.
In an announcement that was released on November 30th, 2018, it was reported that both the Shell and BP corporations are gearing up to use the Vakt platform. For this collaborative effort to take shape and succeed as the industry moves ahead, it is important that Vakt, being the logistics arm of the project, and Geneva-based Komgo, which will handle the financial aspects, work together seamlessly and effectively. This collaboration will, of course, aid the Shell and BP corporations in their efforts to solve various problems and inefficiencies processes behind current trading and methods.
Shell’s Head of Training, Andrew Smith made a brief statement to Reuters, in which he said:
“Collaboration with our peers and some of the industry’s key players is the best way to combine market expertise and achieve the scale necessary to launch a digital transaction platform that could transform the way we all do business.”
This statement alone marks what it will take for any type of mass adoption throughout various industry sectors, and this collaboration possesses it all.
Vakt began serving this particular consortium in 2017, effectively serving big players in the oil industry, including, Shell, BP, and Norway’s Equinor. Additionally, the consortium also consisted of globally acknowledged trading firms, Mercuria Energy Group, Gunvor, and Koch Supply & Trading.
Now, the initial launch will only be accessible to the companies mentioned above and will have a set of parameters that limit their contracts to 5 grades of North Sea Crude Oil, however, 3rd party access will also be available at a later date. With all of the advancements that are taking place in the technology sector, it is going to be amazing to see how this new trading platform acts to revolutionize the world around us, and the way that we go about our everyday lives.