Saudi Arabia Is Eager To Adopt Blockchain in Aramco
Nick Spanos, one of the original blockchain developers, said that Saudi Arabia is becoming impatient to recruit the blockchain technology in its oil industry. In his interview with bitcoin magazine, Spanos informed that almost everybody in the Saudi kingdom has high hopes in the breakthrough technology and are eager for its implementation.
Recently, Decoding Blockchain KSA was hosted by Saudi Arabia which was the first blockchain centered event in Riyadh. Spanos was escorted by an official from Aramco who believes that their company is exploring the different applications of the technology. They further said that Saudi’s energy sector would employ blockchain sooner or later.
Spanos said, “The future has arrived for the energy sector. Decentralized, peer-to-peer trade will slash costs and lessen administrative burden for the entire process, from upstream to downstream to shipping and chain-of-custody logistics.
Currently, Spanos enjoys the position of the co-founder of Zap.org, a smart contract application and a supply chain which has been developed for the oil industry. The app is useful in tracking every barrel sipped through smart contracts, automation on a large scale and securing payments. It seems like Aramco will be integrating the application in its framework to go smart and automatic.
In such a case, competitors will enter the market without wasting any time. It is quite evident that Riyadh is willing to invest in any project that revolves around change and transformation even after the hard situations the kingdom is facing. As of now the oil industry accounts for more than forty percent of Saudi’s GDP and is a significant factor in the success of the Vision 2030.
Currently, the kingdom is experimenting with the technology in the financial sector which is a natural platform for blockchain to serve. Unlike any other sector, the oil industry is slow in the adoption of change even if it is none other than blockchain technology.
In the United States, blockchain has faced issues in terms of lack of knowledge and professional for its low profile entrance in the oil and gas industry. It can be an opportunity for Saudi Arabia to tame a new technology before its major rival gets the benefit.
The US blockchain solutions have been supported by the digitization drive prevalent in the energy sector and also the need of cost-cutting after the 2014 price slump. The US counterparts won’t be wasting much time in accepting the technology amidst traditional conservatism and regulatory confusion.
The kingdom will have to make quick moves, or the US will take a significant edge on international oil supply. The technologies will probably cost thousands of workers their jobs as automation will take over. It won’t be a problem for Aramco as it is positive on cost cuttings especially before its long-anticipated initial public offering.
Right now, things are not concrete as talks have not finished. But, calculating the current outlook of the kingdom and Aramco blockchain will be making Saudi’s most important and abundant natural resource more competitive in the international market. The kingdom will also be using this technology in other industries as well as public services to gain an edge over other nations.