Welcome to the latest edition of the Energy Recap. This week we wanted to examine the interesting topic of blockchain technology and what it might mean for the future of the energy sector. Blockchain has been called the "next revolution" in energy by some, while others seem less convinced of its possible influence.
To put it simply, blockchain technology "enables the cheap, safe, and direct processing and recording of transactions, without the need for a trusted third party acting as a central mediator - such as a bank, a public authority, or a power supplier." Check out this graphic for a good explanation of how a transaction works:
A likely scenario for this technology getting integrated into the energy sector is described by HBR.org as follows:
[B]lockchain will become part of the answer to updating and improving centralized, legacy systems with a distributed hybrid system made up of a patchwork of both large power plants and microgrids powered by distributed energy resources such as solar power. Such a decentralized energy system would be capable of delivering efficient, reliable, and, in many cases, renewable energy. This coming shift is prompting the industry to focus on blockchain's potential to make peer-to-peer energy trading a reality, though it's unclear how soon the nascent technology can be scalable.
Check out the entire article (linked to above) for more info.
So, what's your take on this technology's possible role in the energy sector? Do you think it's "revolutionary" or not? Please leave us your thoughts in the comments section below.
Energy Articles of Note
"Shell's Floating LNG Endeavor Is About To Begin" By Callum Turcan
"Why Ocean Rig Is Not A Short Anymore" By Vladimir Zernov
"Crude Oil: When A 'Draw' Is Not A Draw" By Richard Zeits
Energy Sector Bankruptcies for the Week Ended Oct. 6, 2017
Here's a list of the most recent bankruptcy announcements in the energy sector:
- None
Feel free to add any that we might have missed in the comments section below.
U.S. Oil Rig Count
As per Baker Hughes, the number of active U.S. oil drilling rigs moved lower this week.
Weekly Natural Gas Storage Report and Summary
Natural Gas Rig Count
Oil Production
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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