A 10-company consortium in the Oil & Gas industry has successfully pilot tested the usage of blockchain technology at key US production sites.
Impact of Blockchain
The OOC Oil & Gas, a consortium made up of companies including Exxon Mobil Corp, ConocoPhillips and Equinor recently piloted tested the use of digital ledger technology for the first time in hope that it will more efficiently manage the flow of natural resource extraction.
The pilot focused on 5 wells owned by the company Equinor in North Dakota and partnered with Nuverra Environmental Solutions to safely and efficiently dispose of excess water during the process.
A Reuters report claims that the technology was able to reduce the entire process of the supply chain from 90-120 days to a remarkable 1 to 7 days; the result of the elimination of nine fundamental processing steps. An assessment from the consortium also revealed the capacity to automatically confirm 85% of all measurements of volume.
Chairman of the Consortium Rebecca Hofmann was positive about the impact of blockchain on production and claimed that “Equinor and others in the consortium are seeing the value and investigating how this can be implemented to bring much-needed cost savings back into their companies.”
After the flash crash of Oil to sub-zero dollar value in late April, companies in this industry will be eager to implement emerging technologies if it means increased production and lower costs in the future.