In what ways can blockchain technology disrupt the oil and gas industry?

What if someone figured out how to use blockchain technology to revolutionize the oil and gas industry? What will it look like, I want to know.

It all started with an old friend who is now a senior official in the oil and gas industry. He believes that blockchain technology has great potential in the oil and gas industry. As we know, the oil and gas industry has great potential for human life. Important role.

Blockchain has got rid of its position as a purely niche technology, and is now regarded as a technology that can change all walks of life by bringing digital automation, security, and saving a lot of potential costs to traditional industries. The shareholders of oil and gas companies have been trying to push companies to cut expenses while increasing revenue. This has brought a lot of invisible pressure to the enterprise. Blockchain technology can help optimize the oil and gas supply chain through a large number of automated procedures and provide greater transparency.

Three American oil companies including Chevron and ExxonMobil have joined forces to become the industry’s first blockchain technology alliance. The alliance is seeking potential use cases of blockchain technology for the oil and gas market. This technology has the potential to improve the efficiency of the oil and gas industry by reducing operating costs, eliminating operating delays, and increasing industry transparency.

In this article, we will explore some potential applications of blockchain technology in optimizing the oil and gas industry.

Blockchain digitizes crude oil trading

Blockchain provides three benefits to the crude oil industry, digitizing transactions to improve security, transparency, and efficiency. In 2017, Natixis, IBM and Trafigura were the first to use smart contract platforms to launch blockchain technology solutions for U.S. crude oil trading.

Blockchain enables buyers, sellers, and banks to share information in real time, and through the same ledger, improve the process from order confirmation to delivery or cancellation.

Blockchain technology improves trust

Another possible application of blockchain in the oil and gas industry is the storage of certificates required for critical industrial equipment related to operational safety. The company’s blockchain network can securely record and store employee or contractor certifications, such as H2S, first aid, welding certificates, and so on. By storing this information in the blockchain network, all members can verify certificates and standard operating procedures at any time, thereby increasing the trust among stakeholders.

The role of blockchain technology is not only to increase the trust between the company and contractors/employees, but also to help solve problems such as expensive employment and ensuring job performance safety.

The oil and gas industry supported by Crypto

Blockchain technology can optimize mining services for the oil and gas industry by providing Crypto to the public. In addition, parties can use the token to convert value in it without using a bank. This can provide a very important opportunity to enhance the value of the industry and provide investors with more choices. At present, investors are very clear about where the future lies. Tokenization will help the oil and gas industry.

As one of the most valuable non-renewable energy sources in the world, oil-related Crypto tokens may become a substitute for traditional financial transactions, allowing parties to directly transfer value while eliminating the need for third parties (such as banks).

Eliminate intermediaries and reduce costs

Because there are many participants, the international oil and gas supply chain is difficult to monitor, and each participant needs to access information at any time. Data is usually scattered in multiple systems, and manual reconciliation is required to understand the full picture of the process, which means that a large number of intermediaries are required in the traditional process.

Blockchain is a decentralized technology that can guarantee the security and accessibility of records, thereby eliminating the need for most intermediaries. The potential of blockchain technology to help oil and gas companies improve the efficiency of supply chain management is huge, and transactions between suppliers, buyers, and financial institutions can be completed quickly and easily without intermediaries.

Improve asset transparency in the oil and gas industry

The oil and gas industry is directly affected by world population growth, which will lead to more energy consumption. The industry is currently dealing with two important issues. The first issue is the increasing demand for more oil assets to meet the growing demand for oil and natural gas products. The second problem is the opacity of oil and gas operations. Oil and gas companies need to spend a lot of time and money to maintain oil assets. In the business activities of the department, a correct understanding of these assets is essential.

Blockchain technology can help increase the visibility of oil assets, which will reduce the time it takes to solve problems. In addition, by seamlessly connecting with other technologies, blockchain technology may help improve the ability to identify asset solutions. Blockchain technology will also help improve the oil and gas industry by reducing time and costs.

Summarize

Blockchain provides many value propositions for the oil and gas industry, and the most notable is the development of a privately accessible blockchain network to support the transaction process of all its stakeholders. However, there may be practical challenges in implementing this broader ecosystem; therefore, the best proposition is not easy to determine, and expert advice is essential. A broad team of multidisciplinary experts can provide expertise and leadership to help the areas that can benefit most from blockchain systems.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/in-what-ways-can-blockchain-technology-disrupt-the-oil-and-gas-industry/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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