LONDON, March 14, 2018 /PRNewswire/ --
Blockchain could be about to revolutionize the energy industry. Jerry Bailey, former President of Exxon operations in the Arabian Gulf explains, "The Blockchain holds the promise of unlocking billions of dollars in profits for the Energy Industry by reducing the friction inherent in the business processes we need to control."
Few people outside of the energy industry understand the complexity of the transactions involved in getting crude oil from the ground to your car. Included in today's commentary: Transocean Ltd. (NYSE: RIG), National Oilwell Varco, Inc. (NYSE: NOV), Whiting Petroleum Corporation (NYSE: WLL), Helmerich & Payne, Inc. (NYSE: HP), BHP Billiton Ltd. (NYSE: BHP).
There is no such thing as a 'simple transaction' in oil & gas. Even the smallest producers are managing
- Land lease agreements
- Royalty agreements
- Revenue shares
- Profit shares
- And many more.
Bailey, one of the leading tech minds in oil & gas today, sees the blockchain as the obvious solution to reducing the friction, fees, and costs in the complex ecosystem.
The resulting profits could be in the billions.
BP, Shell, Statoil and major commodity trading houses all seems to agree. They are all getting involved in blockchain solutions for the energy industry.
Today, Bailey is President & Director of Petroteq (PQE.V; PQEFF) a technology company that develops and monetizes tech in the oil & gas industry.
Petroteq is at the heart of blockchain use cases in oil & gas. They are aiming to create an oil & gas consortium to deliver a blockchain-based solution to manage transactions across the industry.
PetroBLOQ is the solution it is working to develop through First Bitcoin Capital Corp.
The major problem PetroBLOQ tackles is the difficulties oil and gas companies encounter when putting together supply chains in constantly changing geopolitical conditions and shifting regulations.
Services to streamline such efforts cost a lot, and costs can multiply at times when prices are low. That really takes a bite out of profits. PetroBLOQ is being developed to allow companies retain to save many of those costs.
Geoffrey Cann, a Director at Deloitte specializing in the oil and gas industry, recently cited PetroBLOQ as a serious contender for becoming the blockchain solution in the energy arena.
Why? Because with PetroBLOQ deals normally taking weeks to complete can be done in hours, or even minutes.
Even better, it's more secure than the current processes. And cuts out expensive middle-men.
PetroBLOQ is an example of Petroteq's unique tech-first approach to the oil & gas market.
But it's not the only one.
Nothing epitomizes Petroteq's (PQE.V; PQEFF) tech-based approach to oil & gas more than their revolutionary oil sands process.
Bailey's team could potentially unlock billions of barrels of oil in Utah, Colorado and Wyoming alone - for just $22/barrel!
Bailey's team is not chasing after profits in traditional upstream, midstream or downstream sectors.
Instead the company focuses on developing bold new technological strategies for unlocking energy resources.
Like its breakthrough oil sands extraction process.
The U.S. Department of Energy reports the U.S. has the third most abundant oil sands in the world.
Just three states together could hold between 1.2 trillion to 1.8 trillion barrels of untapped oil.
So far, little has been done to develop this resource, mostly because up until now oil sands exploitation has been dirty and expensive. The tar sands of Canada, for instance, were so dirty and costly, most majors had to divest from the fields altogether after the last oil price crash.
But Petroteq's new tech is on track to change that. Petroteq bought the rights to exploit a huge oil sands deposit of an estimated 87 million boe in eastern Utah.
Their unique Liquid Extraction System unlocks oil sands deposits without producing a lot of excess waste. It's a clean process.
Their first project in 2015 produced 10,000 barrels of oil - roughly 1 barrel per ton of sand.
Petroteq's potential massive licensing opportunity.
The potential for mass application of Petroteq's (PQE.V; PQEFF) new technology is vast. Canada alone has 100 billion boe of oil sands, and worldwide reserves are estimated at 500 billion boe.
Utah, Colorado and Wyoming together potentially hold about 1.2 trillion boe in oil sands and shale, worth a combined $72 trillion at current market prices.
Canada has $6 trillion worth of oil sands that could eventually benefit from safe, inexpensive exploitation through Petroteq's new methods, although Canada's oil sands are considered wet and the Petroteq technology works best on dry oil sands.
Petroteq's cheap, environmentally friendly process could make it a top solution for tapping these vast oil sands resources.
The company is led by an experienced, proven, and connected management team.
The management at Petroteq is a cut above the rest: they know the energy sector and the world of blockchain intimately.
CEO and Chairman Alexsander Blyumkin has invested millions in the business, including an interest-free loan for the production facility at Temple Mountain in Utah.
CTO Dr. Vladimir Podlipskiy is a 23-veteran of chemistry, manufacturing and R&D. He's an expert on extraction, and has pioneered the company's innovative solution for oil sands production. He's already secured patents for a variety of different methods.
President Dr. R. Gerald Bailey, the former Exxon president of operations in the Arabian Gulf, is dedicated to environmental protection: he firmly believes in Petroteq's mission to extract oil sands in a clean and affordable way.
This tiny company is situated to capitalize on two technologies capable of producing big changes in the industry.
Petroteq's licensing program for their unique oil sands extraction process could help produce a lot of oil from oil sands that were thought to be too expensive and too dirty to unlock.
Combine that with their looking to develop cutting edge blockchain solution and we could be looking at the early stages of one of the great tech companies in energy today.
Now is the time for investors to review Petroteq (PQE.V; PQEFF) in detail to determine if it's a company they want to add to their portfolio.
Other top picks transforming the energy sector:
Transocean (NYSE: RIG) This offshore rig giant has been through the ringer and might have been left off everyone's radar while its aging rigs collected dust because producers weren't willing to foot the bill for expensive offshore operations when oil prices can't support new projects. But there's a new CEO in town, and while Transocean at first looked like it would be the first ship to sink, that's not the viewpoint now.
More specifically, Transocean is in talks with multiple customers for new floating contract opportunities this year and next, and management has said that the company may have a contract to reactivate its DDI rig for up to seven months offshore Australia. The growing consensus is that Transocean is ready to absorb more market share.
National Oilwell Varco (NYSE: NOV): Its stock isn't as cheap as Transocean's, but it's still a good price, and this company will play a key role in the oil recovery when offshore rigs are reactivated-especially since it controls some 80 percent of all drilling-related equipment on rigs.
The past three years have seen NOV skydive downwards 60 percent from its peak thanks to the oil price collapse. It's again at multi-year lows. But what looks good here is a drastic reduction in operating expenses. Just as importantly, NOV is likely to benefit from the uptick in horizontal drilling.
Whiting Petroleum (NYSE: WLL): Whiting is big in the Bakken, but it's been hit harder than most, so it's a great time to buy. It took on a huge chunk of debt right when the oil price collapse happened, when it bought out rival Kodiak Oil and Gas for $6 billion. But since then it's been improving its balance sheet and cutting costs to manage low oil prices. It's work in that area has been impressive.
Now that oil has started to bounce back, investors are taking notice.
Helmerich & Payne (NYSE: HP) is a petroleum contract drilling company based in Tulsa. The company has been in operation since the 1920's so it has definitely seen oil prices rise and fall, remaining resilient the years. The company's FlexRigs have changed the face of shale drilling.
This one is interesting because the stocks been selling off because everyone thinks there will be a slowdown on market growth for land rigs, so this stock is cheap. But it's putting a lot of rigs back into play and it should be generating cash because these rigs were all ready to go, so no cash to put them in the field.
BHP Billiton Ltd. (NYSE: BHP): This giant not only mines metals, it also extracts oil and natural gas and has a diverse set of assets to that end in the Gulf of Mexico, Australia, Trinidad and Tobago. Beginning its operations in the 1800's, BHP is a well-known name in the resource industry. With headquarters based in London and Melbourne, BHP's global presence is will accounted for.
With such a huge influence across the globe, BHP has taken the role as an example in social and environmental responsibility. The company's incredible assets, global reach and leadership in the industry make it a great pick for investors.
By. Joao Piexe
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This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this release include that PETROTEQ will be able to produce oil as currently scheduled, at the rates of production announced and at the targeted low prices from its Utah property; that PETROTEQ will successfully develop a blockchain supply chain solution for the oil industry; that it will have customers and contracts for its supply chain technology; that oil will be as much in demand in future as currently expected; that PETROTEQ's technology is protected by patents and that it doesn't infringe on intellectual property rights of others; that PETROTEQ will find licensees for its technology and that it can patent its technology in many countries; that PETROTEQ's technology will work as well as expected; that blockchain technology will help PETROTEQ create a supply chain management system which can handle all transactions; and that PETROTEQ will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the Company's patents and other technology protection are not valid, patents may not be granted in countries where PETROTEQ wants to license its technology; production of oil may not be cost effective as expected, technology development costs may be much higher than expected, there may be construction delays and cost overruns at the production plants, PETROTEQ may not raise sufficient funds to carry out its plans, changing costs for extraction and processing; technological results based on current data that may change with more detailed information or testing; blockchain technology may not be developed to be as useful as expected and PETROTEQ may not achieve its business plans; competitors may offer better technology; and despite the current expected viability of its projects, that the oil cannot be economically produced with its technology. Currently, PETROTEQ has no revenues.
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