Could blockchain disrupt Big Oil? – Blockchain Magazine

The oil and gas (O&G) industry is known for being highly secretive, centralized, and disproportionate in the distribution of value. With the emergence of Vakt a blockchain commodities trading platform backed by majors such as Chevron, BP, and Shell—the oil majors will use the technology to simplify complex accounting, reduce paperwork, fraud, and costs. If all goes according to plan shareholders will be well served. 

Despite the Vakt advancement, the O&G industry still seems ready for its own ‘Satoshi moment,’ something that substantially improves the underlying issues in energy including affordability, transparency, and the environment. Simply put, a true O&G blockchain revolution needs to bring something more substantial to the table.

(In all fairness, CO2 emission is a shared problem between both the blockchain and petroleum industry—Bitcoin hash mining generates about 204.71 kilograms of CO2 per transaction, adding up to the power consumption of Portugal (Digiconomist)

One project gearing up to revolutionize the O&G space is FullToken. The objective is to deliver fleets & consumers affordable, CO2 neutralized fuels. Token holders could choose which blockchain certified CO2 offset project to back (perhaps bridging with existing platforms such as CarbonX’s Zerofootprint® and GOODcoins™

FullToken would finance CO2 offsetting with its underlying swap trade: FullToken would trade its fuels for merchant-issued gift cards, airline miles, fuel cards, or even utility bill credits. The token holder accesses the credits through a broad menu of merchant brands provided on the Dapp wallet. 

Merchants usually prefer selling gift cards because they can book the revenue right away without needing to restock inventory (float). This same principle applies to FullToken fuel trades except the merchant would be ‘floated’ fuel upfront in exchange for credits issued to token holders—a major advantage in many industries and fleets. 

According to FullToken’s modeling, a scaled operation could deliver even better pricing than retail fuel, despite the additional CO2 offset cost. Such a case would be compelling to consumers, fleets, and corporates—especially those pursuing supply chain sustainability mandates or carbon credits. An ideal FullToken trade would leave the merchant with a higher margin and customer engagement; the token holder with relatively enhanced buying power; and for the environment, no resulting net increase in CO2 into the atmosphere. 

FullToken’s use case could also prove a viable private market alternative to ‘carbon tax’—a politically toxic proposition. Set aside CO2 offset capital could be applied towards sustainable assets benefiting the token holders. For example, a fleet could apply the CO2 offsets towards eco-friendly equipment upgrades.

Ideal FullToken customers include: 

FullToken intends on rolling out their STO (security token offering) this spring. The development on the Dapp is underway and said to be powered on the frontend by Ethereum and IBM’s Hyperledger Fabric on the backend. 

Conceptually, an O&G blockchain project delivering affordable and CO2 neutral fuels would be nothing less of disruptive. 

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