The technology platform aims to be the largest tokenized commodity production and exchange mechanism in the world. The platform supports local oil well operators to deploy innovative technology solutions that dramatically reduce the carbon footprint of oil production while recycling old oil wells that are abandoned or underutilized.
This ‘oil well recycling’ program accomplishes multiple goals from an economic and environmental perspective:
- Reduce production cost and maintenance by almost 60%
- Greatly reduce carbon production intensity (up to 90%!)
- Eliminate the need for new oil well drilling
- Recycle and rehab old oil wells
- Eliminate eco-hazard of chemical leaks from abandoned oil wells
The Trillion Dollar Problem
In the Southern US alone, over 100,000 Low-Volume Oil Wells are either abandoned or underutilized. These wells can quickly become an ecological hazard and cost close to a Trillion Dollars in clean-up across North America. The current estimate for just the cleanup in the US state of Texas alone is over $117Bn USD.
What SOP does differently
SOP supplies Operators and Owners with the technology and the expertise to replace the old equipment with solar-powered pumps that are economically viable, efficient, and automated. With this, the wells are given a fresh breath of life into profitable production. This is particularly effective for the well sites that are older and have minimal profit margins with traditional technologies.
How the Process Works
After review by members of the Solar Oil team, selected oil well sites are equipped with eco-friendly pneumatic pumps, solar panels (where applicable), air compressors, and remote monitoring capabilities. The combination of these technologies results in a modern production mechanism that brings these abandoned wells back into active production.
Tokenized Rewards And How To Participate
Perhaps the most attractive part of the project is how it encourages the participation of all interested users. Anyone can create a free account on SOP’s website (solaroil.io) and purchase the Solar Oil Access Token (SOAX). This non-speculative utility token gives the users access to the platform where they can assign the access tokens towards the work on selected oil well sites. The revenue generated from the token sales is used to then update the wells in the selected portfolios.
In return, users who participate in this manner receive a portion of the oil production in the form of the SOPX token – The Solar Oil Production token. SOPX distribution is in proportion to how many Access tokens a user assigned to the oil portfolio. The SOPX rewards may then be traded on the Commodity Exchange for other commodities, currencies, or crypto assets.
This elegant solution allows for equitable rewards distribution for any users that help protect the environment while resulting in profitable energy resource production.