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blockchainspot
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Level 2
Asked: 2019-12-17T23:35:40+00:00 In:

How can the blockchain support the oil and gas industry?

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Blockchain is an encrypted digital database of business transactions, protected by cryptographic methods and designed to record any quality transaction. The information stored in a blockchain is basically in ‘blocks’ on a ‘chain’ but not in a physical sense.

The essential quality in a blockchain network is that it is decentralised, implying that it is not operated by a single body, but a computer network (nodes) constitutes a blockchain network.

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    1. Level 6

      Blockchain technology has the ability to have a major influence on the oil and gas sector by minimising running time and costs, while also enhance transparency.

      Different fossil fuels industries, including two major American companies ExxonMobil and Chevron, agreed to form the first blockchain conglomerate to examine the potential benefits that blockchain technology can bring to the industry.

      • The crude oil transactions can be digitalised by using blockchain technology. Blockchain enhances protection, increase transparency and maximise productivity which can be used to digitalised crude oil transactions. Natixis, a French company and investment bank, was the pioneer for a blockchain solution in commodity trade in US crude oil.
      • The oil and gas industry is one of the major highly regulated markets around the globe. In the industry, all transactional data can be stored on a blockchain network which can be accessed in real-time and can maximise transparency.
      • The current method of land record-keeping is complex and vulnerable to forgery and other illegal activities. A big database can be held on the blockchain to establish a registry of land ownership, exchange and price. Blockchain technology is being studied as a viable solution in Georgia and Ghana, where there are high levels of land ownership disputes. 
      • The oil and gas industry can rely on IoT to track and improve operations. Although these IoT devices are close to each other, they need to transfer data over the internet and are heavily dependent on centralised storage solutions that could be at risk of cyberattacks.
      • The blockchain technology can be used for efficient monitoring in each step of the supply chain cycle for controlled products, thereby improving industry transparency.
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