The oil and gas industry is plagued by bureaucracy and administrative fees that drastically reduce the level of efficiency and profits that could potentially be realized by the industry.
Now, a new technology has emerged to challenge the industries aging methods and hopefully revolutionize the sector. PermianChain Technologies, a company based in Canada and with links to the United Arab Emirates, has developed the Permian token in order to leverage blockchain technology to improve systems in the oil and gas industry. Confusingly, the coin will use the ticker XPR, which seems likely to get confused with Ripple’s XRP token.
Through the use of smart contracts to replace and automate the complex legal agreements necessary to trade oil and gas, PermianChain hopes to reduce delays and attract further investment into the industry. Liquidity issues and brokerage burdens are additional problems that the system has the ability to resolve while improving profits and reducing margins.
Blockchain has been touted as a catch-all solution to a number of problems over the past few years but has recently come under fire for being misappropriated within a number of sectors. However, it would appear its permissionless and autonomous nature could be a genuine benefit to the oil and gas industry due to the massive scope of legal and networking requirements that the industry poses.
Permian Token (XPR) will act as a digital asset that represents holding rights for as yet unspecified reserves of oil and gas. In other words, it will create a digital method by which to easily and cost-effectively trade on resources that are yet to be mined.
It is reported that over 30,000 XPR tokens have already been pre-booked and PermianChain are ready to launch the first round of private placement to over XPR token rights to accredited investors.