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Blockchain Technology in Oil & Gas

Even though Blockchain is not directly related to earth’s mantle for natural resources, DLT has the capability to cut a disruptive path through automotive, finance and healthcare ,thereby benefiting the Oil & Gas industry.

Blockchain is an emerging technology with many interesting use cases in Oil and Gas. Even though the Energy sector is slow in adopting blockchain, the scenario is rapidly changing, a recent survey has revealed that 72% of oil and gas executives expect blockchain to interrupt the industry.

Interestingly Blockchain is not directly related to earth’s mantle for natural resources, however, DLT can cut a disruptive path through Automotive, Finance, Healthcare & Oil and Gas, which can benefit Oil & Gas companies.

Use Cases of Blockchain in Oil & Gas

Digitization of Crude Oil Transactions

Blockchain can help in digitizing crude oil transactions, thus ensuring enhanced security, improved transparency, and optimized efficiency.

Improvised trust among Partners

All the employee track record and contractor certifications can be stored safely in the blockchain network. This type of setup could easily boost trust between companies and contractors/employees. It can also ensure cutting hiring costs, along with improved job safety and performance.

Hydrocarbon (Fuel) Tracking

Blockchain ensures accountability in the Oil and Gas industry by effectively tracking regulated substances at reach stage of the supply chain process.

Augmented Compliance

Oil and Gas industry is known to be the most regulated industry in the world, with several protocols and regulations being imposed from environmental to taxation by the regulatory authorities. Blockchain network can ensure maximum visibility in the industry for the regulatory authorities, by making available all the data stored on the network to get accessed in real-time.

Enhanced Land Record Management

The traditional process of maintaining land sale records of oil gas companies, which represents millions of dollars of investments is cumbersome and can be prone to forgery. Deploying blockchain inland record management creates an immutable record of land ownership, transfer, and value.

Benefits of Deploying Blockchain Oil & Gas Industry

Increased Efficiency

Blockchain has the capability for improvising the efficiency, by standardizing regulatory reporting requirements and data formats across multiple organizations. The DLT technology can reduce the number of intermediaries, thereby helping players to move products from one checkpoint to the other. This helps in interoperability, thereby ensuring the overall process is performed with integrity and transparency.

Security Compliance

Usage of blockchain forces companies to share digital data flow with each other, for ensuring that the information between parties is accurate and readily available on the blockchain. This distributed database creates a true history of transactions. As the Oil & Gas industry is heavily regulated, a secure and accurate database will ensure compliance. The ledger creates a secure system, that allows parties to both confirm and validate transactions in real-time seamlessly.

Reduce Costs

Blockchain can provide a significant reduction in the overall costs of oil & gas processes, by streamlining procedures and reducing the number of intermediaries, and improvising supply chain management. Overall blockchain can reduce administrative errors, improves invoice accuracy, and limits the need for third-party intermediaries. The concept of oil-based digital currency powered by blockchain, can also significantly reduce intermediary costs because the need for the intermediation of any single central authority will be eliminated.