"Blockchain Industry Observation" Column · Article 53
Picture丨From the Internet
Picture丨From the Internet
What if someone figured out how to use blockchain technology to revolutionize the oil and gas industry? What would that be like, I wondered.
It all started with an old friend, who is now a senior official in the oil and gas industry, who believes that blockchain technology has great potential in the oil and gas industry, which is crucial to human life as we know it. important role.
Blockchain has shed its status as a mere niche technology and is now seen as a technology that could transform industries of all kinds by bringing digital automation, security and potentially substantial cost savings to traditional industries. Shareholders of oil and gas companies have been trying to push companies to cut expenses while boosting earnings. This has brought a lot of invisible pressure to the enterprise. Blockchain technology can help optimize oil and gas supply chains by automating a large number of procedures and providing greater transparency.
Three U.S. oil company conglomerates, including Chevron and ExxonMobil, have joined forces in the industry's first blockchain technology consortium. The consortium is looking at 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 operational delays, and increasing industry transparency.
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Blockchain Digitizes Crude Oil Trading
Blockchain offers 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 launch a blockchain technology solution for U.S. crude oil trading using a smart contract platform.
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Blockchain technology improves trust
Another possible application of blockchain in the oil and gas industry is the storage of certificates required to operate safety-related critical industrial equipment. A company’s blockchain network can securely record and store employee or contractor certifications such as H2S, first aid, welding certificates, and more. By storing this information in the blockchain network, verification of certificates and standard operating procedures can be performed by all members at any time, increasing trust among stakeholders.
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The Oil and Gas Industry Backed by Crypto
Blockchain technology can optimize extraction services for the oil and gas industry by making Crypto available to the public. Additionally, parties can use tokens to convert value among them without using a bank. This can provide a very significant opportunity to increase the value of the industry and provide investors with more choices. Right now, investors have a good idea of where the future lies, and tokenization is helping the oil and gas industry.
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Eliminate intermediaries to reduce costs
International oil and gas supply chains are difficult to monitor due to the many players involved, each of whom needs to have access to information at all times. Data is usually scattered in multiple systems, and manual reconciliation is required to understand the whole process, which means that a large number of intermediaries are required in the traditional process.
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Improving Asset Transparency in the Oil and Gas Industry
The oil and gas industry is directly affected by the growth of the world population, which will lead to more energy consumption. The industry is currently dealing with two important issues, the first being the increased need for more oil assets to meet the growing demand for oil and gas products. The second problem is the opacity of the oil and gas operating process. Oil and gas companies spend a lot of time and money maintaining oil assets. Having a proper understanding of these assets is crucial in the business activities of this sector.
Summarize
Summarize
Blockchain offers many value propositions for the oil and gas industry, the most notable being the development of a privately accessible blockchain network to support transactional processes for all its stakeholders. There may be practical challenges to implementing such a broader ecosystem; therefore, the best proposition is not easy to determine and expert advice is essential. A broad multidisciplinary team of experts can assist blockchain systems by providing expertise and leadership in the areas that can most benefit from them.
Originally reported from www.forbes.com by Sani Abdul-Jabbar, Chairman of the Board of Directors of VezTek, a Los Angeles-based startup support and on-demand technology provider. The Chinese version is compiled and organized by the Chain Market team, and the English copyright belongs to the original author. Please contact the editor for Chinese reprint.
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