It’s a complicated process getting oil and gas from the earth’s core to the corner store. See how IBM Blockchain can help.

1. Achieve supply chain
visibility from earth’s core
to corner store.

2. It’s a complicated process getting oil and gas from the earth’s core to the corner
store
You have an extensive supply chain network exchanging assets, goods and services.
Your Customers
Customer
B
Customer
A
Customer
C
Customer
D
Your Company
Exploration &
ProductionProcurement
Engineering Regulators
Your Supply Chain
DistributorsSuppliers
Partners
Joint
Ventures

3. Each participant in the value chain network records their transactions in their
individual ledgers
Every transaction must be manually reconciled among other participants in the network. The process
becomes even more complex when third-party validation is needed to resolve disputes.
The reconciliation process is:
 Time-consuming
 Susceptible to errors
 Prone to manipulation
Multiple ledgers
Multiple transactions
Third party validation

4. For a network to function properly, transactions must be recorded accurately
in a system that is accessible to all participants
IBM Blockchain delivers one single, visible, immutable, scalable, real-time truth to all participants.
A wants to send
money to B
The transaction is represented
online as a “block”
The block is broadcast to every
party in the network
The money moves
from A to B
The block then can be added
to the chain, which provides
an indelible and transparent
record of transactions
Those in the network approve
the transaction is valid

5. Blockchain technology can transform your value chain
“Over the past two decades, the internet has revolutionized
many aspects of business and society – making individuals and
organizations more productive.
Yet the basic mechanics of how people and organizations
execute transactions with one another have not been updated
for the 21st century.
Blockchain could bring to those processes the openness and
efficiency we have come to expect in the Internet Era.”
Arvind Krishna
IBM Research

6. The tenets of IBM Blockchain technology
 Shared ledger
Append-only distributed system of record shared across
business network
 Smart contract
Business terms embedded in transaction database and
executed with transactions
 Privacy
Ensuring appropriate visibility; transactions are secure,
authenticated and verifiable
 Consensus
All parties agree to network-verified transaction
Indelible ledger
Need a permanent,
indelible record of
transactions.
Distributed
ledger
Need to share data
across multiple
companies.
Smart contracts
Business rules
and data used in
transactions should
be visible to multiple
members.
Distributed
No central point of
control or ownership
(no shared server).

7. Benefits of IBM Blockchain adoption
 Reduce the cash cycle time from months and days to almost
instantaneously
 Lower overhead and reduce the number of intermediaries
 Make tampering, fraud and cyber crime much more difficult
 Increase the level of trust
“Over the next 10 years…Blockchain technologies will change a great
deal about how the oil and gas industry works.” 2
In the next two years, “we think this could reduce costs, certainly on
payments, by 30 percent,” within the Oil and Gas industry. 3
2. http://www.mckinsey.com/industries/oil-and-gas/our-insights/five-technologies-for-the-next-ten-years
3. http://www.the-Blockchain.com/2016/10/19/oil-industry-exec-bullish-Blockchain-says-save-30-percent-supply-chain-savings/

8. IBM Blockchain enables multiple use cases across the value chain
Billing & invoicing errors
Product exchange accounting reconciliation
Hydrocarbon accounting invoice & reconciliation
Asset life cycle management
Product exchange accounting reconciliation
Incident reporting
Many other additional use cases to help your business

9. Why IBM?
Clients choose IBM because we are the only company who can bring
together deep Chemicals and Petroleum industry and process
expertise with our cloud-based tools and secure blockchain services
to establish trusted blockchain networks and solutions.
We strongly believe in the value generation potential of blockchain and
use it in our own IBM Global Financing business.
The results speak for themselves; IBM Global Financing freed up 40%
more capital and decreased dispute resolution time from 75% with our
solution.

10. Start planning for IBM Blockchain adoption now
…so you can become more productive now
and realize even greater benefits
with increased adoption of Blockchain
throughout your supply chain.
Learn how you can increase your supply chain visibility from earth’s core to corner store.
Visit www.ibm.com/blockchain/geetting-started.html for more information or to speak to a blockchain expert