VANCOUVER, British Columbia, April 12, 2021.
Your solution OilEx is built for small independent producers. Why?
Small independent producers are a significant part of the global oil industry. In the USA alone, the small and private independent producers collectively across more than 2,000 companies produce 22% of all oil and generate around $60,000,000,000 (60 Billion) US Dollars in annual revenue. Each company, on average, is relatively small with less than 2,000 barrels of oil per day in production, around 12 employees and often without a dedicated person marketing the product. So uniquely the USA -the largest oil producer and exporter in the world - sees a significant portion of total production coming from small producers.
Hunter is focused to bring its digital innovation to this target group, which tends to have the most significant gap to digitalize the selling of their product compared to the larger companies who started this process earlier. With a fully digital proposition, it becomes possible to aggregate and profitably serve this sector in the industry at scale, providing a corresponding economic opportunity for us.
Hunter acquired the financial and blockchain technology company FinFabrik that you co-founded. How does that support Hunter's mission?
FinFabrik specialized early in developing digital trading platforms for multiple asset classes, using blockchain technology. As a FinTech company, we brought both the people and their expertise as well as deployable solutions to Hunter Technology.
For example, the FinFabrik platform CrossPool enables digital investment in alternative assets. It uses a proprietary permissioned blockchain infrastructure to digitalize the investment process and assets as well as to manage the identity of investors. The experience and expertise we gathered by building this system and the technology itself today help us develop Hunter's solutions such as OilEx and bring it to market faster.
Is there real value in using blockchain technology for what you are trying to achieve?
Blockchain, like any technology, is neutral. It can be used for good and bad and applied to solve real problems or be a mere gimmick. As a rule, we apply blockchain in our solutions where it is the best technology to solve a problem. The standardized, reliable, and trusted recording of production and transaction data is one such area where the qualities of blockchain technology such as immutability and decentralization of records are truly valuable. Another example is digital contracts: by using blockchain to create smart contracts that combine machine and human readability, agreements become digital with the potential for automation of processes. At the same time, leveraging cryptographic signatures ensures legal enforcement.
Beyond that and looking further into the future, there will be more and more innovation coming out of interesting areas such as Decentralized Finance. This will not happen immediately, but we will be well positioned to offer the benefits and opportunities of this space to our clients when the time is right. For that, we are natively building our solutions on blockchain.
What is the opportunity in digitalizing oil value chains?
We see vast potential in this. If we look at the world today, numerous sectors and industries already function fully digitally. Software has eaten the world, in many ways. But there remain a few areas that are just starting with this development. Transacting between producers and buyers of physical oil is one of them. If oil is sold by a producer to a buyer today, most of the process is manual, offline, and follows a complex process with many different incompatible systems involved, including fax machines and paper documents. This leads to challenges that we can tackle by lifting the entire process on a digital level, using modern technology. It will unlock tremendous value in this market.
What are your priorities this year?
The first six months are all about building and delivering a product with a great market fit, reflecting the market convictions we have and following the insights we generated from industry research. We do this in close collaboration with industry experts, our advisers, and potential future clients and by leveraging our internal expertise in technology and the energy industry.
The second half of the year will bring the most important milestone for us: the first live transaction of physical oil between independent producers and purchasers on our digital marketplace OilEx. This will serve as a proof point of our vision and our ability to deliver. After that, OilEx will be live in a Private Beta with selected partners, and we will accelerate platform development based on the valuable insights from continuous real-world transactions and the engagement with our early clients. With the end of the year, OilEx will go publicly live in our target markets of serving small producers and connecting them to purchasers, brokers, and traders in a fully digital end-to-end process.
Which long-term goals have you set?
Over the next three to five years, we will take up market share in the specific area of physical oil transactions between smaller producers and purchasers, on a global scale. We will use our technology to support clients and go after new opportunities in this highly dynamic sector. Industry change will be our friend and we will actively explore the expansion of our platforms to additional services and potentially other resource categories.
Podcast interview conducted by the Austrian Federal Economic Chamber and published on its websites and social channels.
Video interview conducted by Star Finance GmbH and published via Stock Telegraph.
Both interviews are available as direct links on our website.
ON BEHALF OF THE BOARD OF DIRECTORS
Florian M Spiegl
Chief Executive Officer
For further information, visit our website at www.huntertechnology.com
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