Oil and gas companies must keep track of the oil they produce and sell, from the well to the refinery to the end user. Still, due to exponential growth in the number of transactions and the increased need for transparency, paper records are no longer a scalable option or solution. How do I exchange Ethereum for money? Here’s how to convert Ethereum for cash so you may use it locally.

That’s why oil companies are increasingly turning to blockchain technology like Ethereum. The introduction of innovative contract capabilities enables automated tracking of oil production, prices and consumption as it is bought and sold worldwide. Smart contracts embedded in a blockchain allow each participant in the value chain to see data, automating many processes that would otherwise require human intervention. As a result, it creates greater efficiency and helps reduce risk while increasing product visibility.

Global trade and global commerce need a global solution

The energy sector has had a front-row seat in developing disruptive technologies, including Ethereum. It is one of the first sectors to use smart contracts to improve supply chain visibility, and the industry has recognized this need. As the demand for transparency and automated processes increases, so does oil and gas’s desire for a more cost-effective solution.

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Blockchain technology is available across all progressive supply chains – from pharmaceuticals to wine. Appropriately implemented, Ethereum technology can streamline processes without risk of fraud or tampering and improve product visibility as it moves through the value chain.

Ethereum will help in the digitization of crude oil trading

The current market scenario of crude oil trading is quite simple. Crude oil is sold based on FOB (Free on Board) or CFR (Cost and Freight). So it mainly depends on the mode of transportation, whether the seller or buyer pays for that. 

As per recent statistics total share of crude oil trade over the sea was around 19% in 2015. However, irrespective of the shipping method, the bill of lading is still issued manually. In addition, there is a massive chance for fraud in such an industry where a large amount of money is involved. One might face severe legal consequences if caught in illegal activity like human trafficking or drug smuggling. 

Ethereum-based cryptocurrency is quite similar to fiat currency, giving users a better way to carry out transactions digitally. Besides, the amount of money that must be paid when the trader goes on an offshore shipment or places an order for an overseas shipment is relatively high.

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 Ethereum will help digitize crude oil trading and other commodities in such cases. In addition, online clearing systems will allow many oil traders and refiners to get on board with Ethereum blockchain technology.

Land Record Management

Companies can also use Ethereum blockchain technology for maintaining land records. Blockchain technology enables the tracking of land documentation from where the ownership is transferred. As a result, it will help reduce fraud and ensure that the right of land transfers has been recorded accurately.

Land Registry Management:

Land registry management has become a difficult job to do these days because of all the complexities involved in it. Ethereum-based smart contracts will make this whole process a lot easier and simpler. But unfortunately, people sometimes have to face legal consequences due to incorrect entries made by people not even aware of them or any mistake committed by a government team member or a person who is not authorized to make any changes to it. 

The advantage of Ethereum-based smart contracts is that nothing can be changed without some authorization. Such technology will also help make the whole land record management process more transparent and accurate.

Venture Capital Management 

The objective of any venture capital is to create a new business which will offer consumers high-quality products at reasonable prices and make the world a better place by employing people who were left out of this corporate world due to a lack of skills. 

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Better tracking of oil supply

Ethereum can help reduce the cost involved in tracking oil supply and will also help in removing any loss that might occur due to human actions. It can also help reduce the wastage of oil companies’ products that are not used as per their specification or consumed as required. In addition, it will also benefit because if the product is not being used, there is a considerable loss involved. 

Ethereum blockchain technology can have a significant role to play in making energy management more transparent, accurate and efficient. In addition, people involved in the crude oil trade will also help reduce fraud. With the Ethereum-based intelligent contract facility, people involved in this industry will save a lot of time as it will help them run their businesses much more efficiently.

With the help of Ethereum blockchain technology, many companies that were until now not permitted to trade with those companies which were already dealing with other countries due to some embargo on them or because they had tension with the government of the country where they were based can now be opened up to their trading partners. As a result, they can now increase their business more effectively.

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