Blockchain – Iot Strategies And Use Cases – Oil And Gas Industry

Blockchain and IoT technologies provide an opportunity to significantly reduce upstream and downstream costs in the Oil and Gas Industry. The World Economic Forum estimates that the digitization of the Oil and Gas industry could unlock $1.6T of value globally and realize $140B in productivity. While Blockchain and IoT won’t be entirely responsible for these savings, they are the final building blocks that allow the entire Oil and Gas ecosystem to be digitized and connected.  Besides improving productivity, these technologies which require unique systems and intrinsically safe hardware can be applied to significantly reduce the friction inside the industry caused by the need to address the following issues:

  • Currently 9% of oil transactions are disputed – Significant delay in payments, incremental legal fees, significant overhead costs
  • 15% of assets in the industry are counterfeit – Lost productivity, environmental risk, inspection and validation overhead, production delays
  • Reduces transaction friction – Payments accounting, asset utilization, third parties

All of the above issues have significant impacts on the profitability of the industry, but the most important issue is counterfeiting which affects every industry. In the case of Oil and Gas and Aviation, counterfeiting has serious environmental and safety implications.

Analysis of the Oil and Gas Industry yields a rich mix of use cases which include but are not limited to;

Near Term

  • Environmental and regulatory compliance monitoring and reporting
  • Performance based smart contracts
    • Transaction validation
    • Proof of State
  • Proof of Reputation for third parties
  • Supply Chain Management
    • Provenance, Chain of Custody
  • Asset Tracking, management across the performance lifecycle
    • Blockchain and IoT
  • Counterfeit component avoidance
    • Component integrity validation
    • Certification assignment
  • Integration of suppliers
  • Sample tracking (BHP Billiton)
  • Field Service Ticket Management
  • Tank Battery tracking and management
  • IoT data integration and management

Longer Term

  • Implement transactional protocols
  • Tokenization
  •  Asset sharing and/or leasing
  • Integration of supplier and customer blockchains
  • Management of full asset lifecycle
  • Production/resource/asset sharing
  • JV/Royalty accounting
  • Land Management

These use cases are being worked on or developed across the entire industry. When making decisions about Blockchain, it is important to understand the maturity of the technology and how:

  1. it will grow in importance
  2. it applies to your company and your industry
  3. to gain a full understanding of the transformational potential Blockchain and IoT technologies to your business and supply chain
  4. how the leadership team can carefully plan their approach to the identification and integration of Blockchain and IoT strategies

Group50, subject matter experts in productivity, cost takeout, supply chains and supporting technologies,  has developed an integrated  Blockchain and IoT plug and play solution called Scioebc™ .  We have also created a 7-step implementation process that includes 4 workshops which are focused on guiding senior leadership through the planning and integration of these transformational technologies.

To find out more about how you can apply Blockchain and IoT to the Oil and Gas Industry and to find out about our next generation of intrinsically safe IoT device, call Group50 at (909) 949-9083, drop us a line at Blockchain@group50.com or request more information here

 

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