Cryptocurrencies

Is Blockchain the Future of the Oil Industry? – Cryptocurrencies

December 2019, the Offshore Operators Committee (OOC) Oil & Gas Blockchain consortium digitizes a blockchain voting system. The consortium is making a new step forward in blockchain exploitation through a pilot project, which should optimize the performance of its member companies.

5 wells on blockchain

The OOC Oil & Gas Blockchain consortium announced the success of its first blockchain pilot project.

The consortium includes 10 oil and gas companies, including Chevron, ConocoPhillips, Equinor, ExxonMobil, Hess, Marathon, Noble Energy, Pioneer Natural Resources, Repsol and Shell.

The pilot project, developed in partnership with Data Gumbo, using its blockchain network GumboNet, is a payment automation platform for water treatment in oil fields.

The test was performed at 5 well level Equinor in the field of Bakken, in the North Dakota.

The visible part of the blockchain

The objective of the project is to reduce costs, increase efficiency with respect to the accuracy and automation of contract payments, ensure transparency of data in real time and, eliminate disputes in the oil and gas industry.

The result was positive. “This is just the tip of the iceberg for the potential of blockchain in our industry,” said Rebecca Hofmann, President of the Consortium. After the test, we saw a reduction in the workflow, going from 120 days to 7 days and from 16 to 7 steps, without any manual intervention.

The consortium plans to continue to develop this solution and extend it to other products and services, in order to achieve savings and efficiency gains for its member companies and the industry as a whole. “The consortium is eager to leverage this information to accelerate adoption and establish key frameworks and guidelines for the blockchain,” added the Vice-President, JD Franke.

When will a fully blockchainized society be? In 2 years, in 5 years, in 10 years? The blockchain is mutating certain practices and society as a whole, without anyone noticing it necessarily. We are waiting for the tokenization of oil and the day when the price will be fixed by token and no longer by barrel.

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