Blockchain Technology Is Set To Transform Oil IndustryDecember 13, 2018
With this being the trend around the oil industry, the blockchain technology is all set to transform the oil and the natural gas sector.
Simon Tucker of Infosys Consulting, previously stated, “Possibilities of Blockchain in the oil and gas industry come with a few limits.”
There is a lot of data revolving about oil production in the industry. The data has transited from being a boon to a burden. The industry needs a system to authenticate the oil-based data from false and manipulated data. Blockchain technology has a lot of potentials to bring down the risk of fraud, error and invalid transactions in the industry.
The ADNOC recently announced that they have successfully collaborated with IBM in piloting the blockchain based automated system to integrate the gas and oil production. This system ordained for oil production from IBM helps the company track, validate and execute the transactions from every stage starting from to the point where it reaches the end customer. The time taken to complete transactions will be greatly reduced using this technology.
The digital unit manager of ADNOC, Abdul Nasser Al Mughairbi, during the World Energy Capital Assembly in London shared their success story concerning incorporating blockchain and several other advanced technologies in oil production. They are also planning to integrate artificial intelligence into businesses to improve operational efficiency. This is set to improve the ability to enable greater performance eventually.
The blockchain pilot project of ADNOC is made available in a single platform, which will track the financial values in bilateral transactions among the different operating ADNOC companies.
Al Mughrabi stated that this is probably one of the first blockchain based application in the oil and gas production industry. This platform will help with accounting from anywhere in the world. It helps to leverage innovative partnerships, which is crucial to unleash the power of technology. Time-consuming labor consuming processes can be executed quickly, and the operating costs as well can be greatly reduced. This will eventually help in sustainable value.
XDC Protocol from XinFin can help deliver sustainable strategies for the industry. Saudi Arabia and several major oil producers are looking to increase oil prices. Saudi Arabia stated that they would be looking to taper off the oil production from the next month. The price of oil jumped in the news.
The OPEC members are set to discuss the deals related to cutting off production. While Saudi Arabia stated that they would be cutting off as much as half-a-million barrels in the next month, Russia has to state that they will cut production only if there will be some consensus regarding the matter. Russia will be waiting to see how the market further develops.