According to data and analytics company, GlobalData, blockchain in the oil and gas industry can increase transparency, compliance, and data security
Compiling a report on this called 'Blockchain in Oil and Gas', GlobalData looks into the role of major oil and gas companies, such as ADNOC, bp, Eni, Equinor, Repsol, and Shell in the development of blockchain to address their challenges.
Substantial growth potential
Ravindra Puranik, oil and gas analyst at GlobalData, said, “While the initial use focused on supply chain optimisation, blockchain has evolved considerably in recent years to support transaction processing with smart contracts. Moreover, the establishment of consortiums has helped to standardise protocols and exchange best practices. With the maturation of the technology, its adoption is expected to expand, ushering in improved transparency, efficiency, and security in operations.
“Tokenisation involves digitising a tangible asset for managing big data or safeguarding sensitive information. It has the potential to streamline bureaucratic processes during the production, transportation of processing of a natural resource across various jurisdictions. A token can facilitate transparency in tracking the movement of natural resources throughout the developmental phases. This transparency not only highlights opportunities to minimize waste but also aids in identifying potential irregularities, thereby aiding the sector in fortifying its reputation at a time when it faces challenges from alternative energy sources.
“As sensor technology reaches its peak within the industry amid rising adoption of the Internet of Things (IoT), blockchain facilitates the direct storage of transactions and accounting data on these devices. By linking assets directly to service contracts, blockchain significantly diminishes processing time and fundamentally alters contracting by providing secure collaboration. Although adoption is currently in its early stages, the potential of blockchain in the oil and gas sector is poised for substantial growth as companies recognise its full capabilities.”
