The OOC Oil & Gas Blockchain consortium in the oil and gas sector successfully completed an initial pilot. This experiment relates to the management of water in the oil fields. Industrialists are now considering other cases of blockchain use.
Energy manufacturers are very interested in blockchain applications in their sector. This is particularly the case in the area of oil extraction and gas. Ten large companies in the market have also formed a consortium to explore the uses of blockchain.
TheOOC Oil & Gas Blockchain Consortium consists of groups like Shell, Equinor and ConocoPhillips. This consortium led a pilot project in partnership with the startup Data Gumbo, a blockchain on-demand service provider, funded in particular by the oil giant Saudi Aramco.
Shared data and smart contracts for billing
Thanks to the automation and trust enabled by the blockchain, manufacturers have been able to complete a nine-step process in just one week. These tasks have so far required over a hundred days.
The pilot led by the consortium took place in five Equinor wells in the Bakken shale field in the United States. The blockchain application focused only on the transportation and use of water. Through the GumboNet blockchain platform, the manufacturer was able to record data related to the disposal of wastewater.
Technology thus intervenes in the automation of the measurement of the volume of water. The OOC Oil & Gas Blockchain Consortium specifies that the solution has automated validation for 85% of the data.
Millions of dollars in savings
This measure, recorded and shared on the blockchain, is accompanied by the use of smart contracts for associated billing operations. Payments are made as and when the work is completed.
The results of this pilot project prove that non-manual volume validations can trigger automated payments to suppliers, and highlight the opportunities that blockchain offers to reduce costs, increase efficiency, ensure transparency and eliminate disputes in the oil and gas industry, ”said consortium chair Rebecca Hofmann.
The Covid-19 is far from having slowed down these technological developments. Due to the collapse in oil prices, companies are planning to accelerate the production of this first blockchain application. It could thus enter into service this year.
Industrialists are also considering other uses in the fields of products and services. The consortium thus estimates that it can generate millions of dollars in savings thanks to the development of the blockchain.