Moreover, by seamlessly joining with other technologies, blockchain may help improve the identification of asset solutions. Oil and gas companies spend a significant amount of time and money maintaining oilfield assets in the operational activities of the sector, it is critical to have proper insights of these assets.īlockchain can help improve oilfield asset visibility, which will decrease time spent resolving oilfield asset issues. The second issue is the opacity of oil and gas operational processes. Two of the most significant issues the sector is currently dealing with include an increased need for more oilfield assets to meet the growing demand for oil and gas products. The oil and gas industry is directly affected by the world’s population growth, which will lead to more energy consumption. Blockchain’s potential for helping oil and gas companies increase efficiencies in their supply chain management is substantial: transactions could be completed quickly and easily between suppliers, buyers and financial institutions without the need for intermediaries (and their fees).īlockchain For Transparency In Oilfield Assets Because the data was generally dispersed across several systems and manual reconciliation was required to obtain a full picture, this meant that numerous middlemen were necessary in the past.īlockchain is a decentralized technology that maintains records as safe and accessible, thus eliminating the need for most if not all middlemen. International oil and gas supply chains are difficult to monitor because they involve many participants who come together for a short time, each of which requires access to current information at all times. The intended purpose of cryptocurrency tied to oil is allowing parties to direct value transfer with one another while removing the need for a third party, like a bank.Ĭost Reduction Through Elimination Of Middlemen For now, tokenization will be helpful mainly in oil and natural gas.Īs one of the most valuable non-renewable energy sources in the world, a cryptocurrency that is tied to oil could be an alternative for traditional financial transactions. That’s a nice way to go with a cryptocurrency supported by oil. Further investment options would only benefit both sectors. At the moment, investors are quite clear on where the future lies. This can provide a very important opportunity to tokenize this sector and offer more options for investors. Moreover, diverse parties could use the token and transpose value inside them without ever using banks. By storing such information in a blockchain network, verification of certificates and standard operating procedures can be done by all members at any time that in turn would improve trust among the stakeholders.īlockchain technology can play a role beyond improving trust between companies and contractors/ employees blockchain can also help address issues like expensive hiring and ensuring safety in work performance.īlockchain might serve oil and gas mining by offering cryptocurrencies to the public. A company’s blockchain network may securely record and store the employee or contractor certification, such as H2S training, first aid, welding and so on. From the time an order is confirmed until its delivery and cancellation of a letter of credit, blockchain can improve the process.Īnother possible application of blockchain in oil and gas is to store the certificates required to operate safety-critical industrial equipment. Blockchain enables buyers, sellers and their respective banks to all share information simultaneously because they are looking at the same ledger.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |