Petroteq Energy, First Bitcoin Capital Partner on Oil and Gas Blockchain Supply Chain

Announcements, Blockchain | November 9, 2017 By:

Petroteq Energy has teamed with First Bitcoin Capital to create a blockchain-based supply chain management platform for the global oil and gas industry.

Petroteq Energy is a Canadian-registered holding company focused on value creation through the development and implementation of proprietary technologies for the environmentally safe extraction of heavy oils from oil sands, oil shale deposits and shallow oil deposits. The company is publicly trading on the TSX Venture Exchange and the OTCQX trading platform. Its offices are located in Toronto, Canada, Los Angeles, California and its initial plant location is in Vernal, Utah.

First Bitcoin Capital is engaged in developing digital currencies, proprietary blockchain technologies, and the digital currency exchange. The company aims to provide shareholders with diversified exposure to cryptocurrencies and blockchain technologies. The Securities and Exchange Commission temporarily suspended trading in its shares this summer because of concerns about the accuracy and adequacy of public information on the Canadian company.

The concerns related to the value of the company’s assets and its capital structure, the SEC said in a statement. “The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company,” said the statement. The suspension was terminated at 11.59 a.m. on September 7.

Under the partnership, both parties 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 includes domestic and international transportation, ordering and inventory management and control, materials handling, import/export facilitation and information technology. By using blockchain, transaction verification for product trades and transfers can be instantly verified across a network without reliance on a central authority. The technology could potentially reduce operating costs and improve the speed of transaction processing.

The companies stated that 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 for oil and gas companies.

“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,” said First Bitcoin Capital CEO Greg Rubin. “In the last few years, the industry has struggled with price volatility and production levels, which has led to cost-cutting efforts, reduced outputs and layoffs. These challenges have prompted many companies to rethink how they operate and to identify new ways to optimize supply chain management and transaction processing. As such, blockchain is gaining traction and broader acceptance by oil and gas industry for its potential to fundamentally change the way certain transactions are conducted.”

“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,” said Petroteq CEO Alex Blyumkin.