Blockchain in oil and gas: a collaborative approach

Abstract

Blockchain technology is a distributed ledger of data, vetted before acceptance, encrypted and shared among parties (depending on the configuration) authorised to view it. Due to the potential cost savings, revenue generation, efficiency gains and security; governments, organisations, companies and consortia across many industries are developing proofs of concept with two in oil and gas reportedly now in production. The value chain in the oil and gas industry is characterised by many remote working locations across different geographical regions; involving multiple stakeholders and regulators each with differing criteria to be met. Many opportunities for improvement across the oil and gas value chain have been identified and some are beginning to be addressed by proofs of concept and live blockchain platforms. However, these are being developed via discrete consortia and not as part of a cohesive industry strategy. Standards to promote understanding and adoption are being developed at the global, national and industry level, but this is an area currently lacking in the oil and gas industry. This paper highlights activity in other industries and suggests that the recently formed OOC Blockchain Consortia of Oil and Gas industry participants, if extended to statutory organisations, regulators, standards organisations and academia could be the forum required to accelerate understanding and adoption within the industry to release the currently untapped value.