The advent of Distributed Ledger Technology innovation is offering many significant blockchain investment opportunities. I have been researching about blockchain companies to invest in that not only yield high returns but also create social impact. In this blogpost I will discuss about one such innovative blockchain idea that could potentially solve an ecological crisis contributing to the green revolution and establish a . I call this “Liquid Crypto Gold” project.

You might have guessed already that I am inching on energy sector. Yes, I am going to talk about a specific niche in energy sector, “Oil wells”. A recent investigation by Reuters estimates that the Unitedcrypto passive income stream States could have more than 3.2 million orphaned and abandoned wells leaking methane, a climate menace. This is one of the biggest environmental hazard and estimates are skyrocketing to upside $500 billion spend from USA Fed to address this. Texas alone will spend close to $117 billion on this clean up.

So what is the problem statement?

So Why do these wells get abandoned? Well it’s simple economics – these wells are unprofitable to operate as they have old equipment that is inefficient and the cost of repairing or replacing the pumps on these wells unjustifiably high.

Abandoned wells are primarily due to the use of inefficient technologies tampering crude oil extraction levels and combined with price pressures led to shrinking operating margins. This resulted in water/soil contamination and carbon/methane pollution. Tax payer dollars has to bite this clean up leading to economic crisis. Don’t jump on to the conclusion that oil industry will die away as most of us stared driving Tesla and other electric cars. Oil has a much broader usage across various walks of life. Petroleum, jet fuel, lubricants to name a few.

The perfect solution

One solution to the above problem is replacing traditional pump jacks with eco-friendly solar powered hyper-efficient pumps. This creates cleaner environment, revitalize economies, and by reducing carbon intensity. This new technology is hyper-efficient and eco-friendly with no moving parts above ground, dramatically lower power consumption, and tremendous reductions in carbon intensity. The result is a complete transformation of the landscape! The hulking antiquated piece of metal is removed, and an elegant, automated Solar pump takes its place.

The oil well that was an environmental hazard now turns into a safe productive oil well again with daily production of 3 to 5 barrels of oil. Thanks to the improved efficiency, oil is now produced for an average of 50% per barrel instead of $27-$40 per barrel. This means that while traditional, inefficient companies struggle to survive in a low oil price
environment, and the stakeholders can continue to grow profitably while being socially responsible.

How blockchain solve this problem?

What if we build a smart contract (no human error) based blockchain platform where anyone from across the globe can participate in revitalizing the old wells thereby revenues generated from oil production will be reallocated proportionately. With millions of underutilized oil wells, there is a limitless opportunity.

Solar energy is simply a part of the process and is primarily there to help lower the environmental impact of oil production. The true cost savings are achieved through the significantly more efficient pumping technology (Pneumatic or PCP) while the Solar aspect helps with making the project greener and better from an ecological perspective.

“Oil For Profits” decentralized blockchain platform enables this well modernization ecosystem. The blockchain platform integrates all the stakeholders includes investors, abandoned oil well owners, decentralized dev teams, and other ecosystem partners. The investor willing to fund these abandoned wells can do so by buying SOAX (Solar Oil Access Tokens). To boost the investor confidence SOAX can be a stablecoin pegged to dollar denomination. Investments also can be as little as 1 SOAX token or fractional token based on the face value. That way the platform can leverage DeFi protocol to tap into large pool of small investors across the globe.

The “Oil For Profits” planform then allocated the collected funds via SOAX to abandoned wells. There could be may operating models. One viable partnership model could be revenue sharing model by agreeing to the share of production of the well proportionate to the SOAX / funds borrowed. With the collected funds abandoned wells replaces traditional pump jacks with eco-friendly solar powered hyper-efficient pumps. The output of modernized wells via shared production / revenue model gets allotted to the investors.

The oil production from the “Oil For Profits” project is issued to the stakeholders in form of the ERC-20 token – SOPX (Solar Oil Production). The SOPX is pegged to the global WTi spot price of barrel of crude oil and can be liquidated through the live Commodity exchange to a host of other assets such as Gold, Silver, Natural Gas, as well as tens of equities and cryptocurrencies. This represents the first major blockchain development allowing for open exchange between true commodity-backed crypto-assets and other fiat-based assets. The goal is to establish a robust financial ecosystem that new disruptive technologies can be onboarded into. This can become a very viable crypto token unlike many thousands of the tokens currently valuated in the marketplace with either anticipated value or network effect that token creates. Pegging SPOX token to barrel of oil makes less speculative compared to super speculative nature of majority of crypto tokens.

The question arises then is future value projection of barrel of oil. As highlighted above the demand for crude oil continue to exist in long foreseeable future, JPMorgan estimated a price tag of $190 per barrel by 2025. The average price per barrel of oil is estimated at $72 over the next decade from many oil & gas research experts. So the SPOX token value gain a high degree of confidence appreciation based on the industry estimates. The “Oil For Profits” DeFi platform can then distribute the SPOX token in proportion to the SOAX token held by an investor.

The real blockchain investment opportunity

The DeFi platform based on DLT technology described above offers one of the great blockchain investment opportunity to the small scale investors across the globe. Aligning to the concept explained above, I recently learned about the “Solar Oil Project” a rare and revolutionary application of technology to address one of the major ecological challenges of our time while providing oil commodity backed token rewards.

Solar Oil Project works directly with multiple partner manufacturers, oil well owners, and oil well operators to ensure the project is moving forward properly. The project allows anyone globally to have a positive environmental impact while also benefiting from the Trillion-Dollar energy and commodity markets.

Solar oil project rewards mechanism is is extremely straightforward and transparent. From the moment of investor buys SOAX tokens and stake them, the stakeholder starts receiving oil production allocation from the oil wells for the next 10 years. Each barrel of oil produced is represented as the SOPX token.

For example, an oil well portfolio has a total of 10m SOAX tokens staked and produces 30 barrels of oil in a day. Let us say you staked 100,000 SOAX tokens. In this case your wallet would receive 0.3 barrels of oil or SOPX tokens. To prevent runaway transaction costs, SOPX tokens are credited to a wallet when the total rewards accumulation exceeds 0.5 SOPX. You can convert the SOPX token to ETH or BTC at whatever the current global price of oil is
minus times 0.6. If the current WTI price of oil is $50, then you would receive $30 equivalent. In this example, where you receive .3 SOPX, that would equate to roughly $20 equivalent in ETH/BTC/TRN (at the time of this article, crude oil price is $69/barrel).

Additionally the platform offers an option to reinvest a portion or total SPOX tokens earned and create the compounding returns with ease of set it and forget features. The following diagram slows a sample calculation and magnitude of compounding effect a small investment of $10k yields over 10 year period.

The more people gets involved in such projects the more powerful an initiative becomes. Refer your friends and make a referral commission of 10%. Leverage your six degrees of separation to fuel the earnings potential (Six degrees of separation is the idea that all people on average are six, or fewer, social connections away from each other).

Finally you have an opportunity to heal the world joining this eco-friendly project and get rewarded. The platform enable you to measure and track the GREEN IMPACT you investment creates and potential gains you can make resulting from the social impact being made. It’s an awesome blockchain investment opportunity with multitude of benefits!

In Summary..

It’s quite a paradox that an infrastructure bill proposed the biggest crypto tax ever. US lawmakers plan to raise $28 billion through digital assets’ taxes to fund a $550 billion act for roads & bridges. But the “Liquid Crypto Gold” project has promising offer to counter these restrictions and yields not only by getting a share on increased crude oil production, but also leverage DeFi to compound the yields, earn commission spread a word on green propaganda and ultimately benefit from “social impact” being created by your sphere of influence.

Get the FREE access and hands-on training to participate in “OIL FOR PROFITS” blockchain investment opportunity.

Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the crypto industry.

Related blog post: DAOtising Traditional Organization

Recommended

Get FREE Helium Miner $449 In Value

A New Way To Mine Crypto. By deploying a simple device in your home or office, you can provide your city with miles of low-power network coverage for billions of devices and earn a new cryptocurrency, HNT. Start Your CRYPTO Passive Income Now!

Claim Your FREE Crypto Trading Bot

Discover best opportunities to maximize your Crypto profit

Get an advantage over the fluctuating market with minimum risks with our automated algorithms generating a profit on every market move

Crypto Swap Profits

Crypto Swap Profits is a training and ongoing online mastermind with a focus on Decentralized Finance Crypto Trading.  This is an emerging area of trading and 99.9% of the world has no idea this even exists.  This is not the “Crypto” most people think about when they first hear the word.