Over the past few years, many industries have adopted the most disruptive technology, ‘Blockchain’, the decentralized ledger system of facilitating transactions. But the oil and gas industry is still sceptical on putting the sensitive information’s in the decentralized database. But, there are numerous ways that the oil and gas industry can benefit from the use of block chain technology, especially with a more effective data management technique, and the security of highly-sensitive data.
Oil and gas industry is now struggling with price volatility and production levels, which has led to cost-cutting efforts, reduced outputs and layoffs. These challenges have prompted many companies to rethink how they operate and to identify new ways to optimize supply chain management and transaction processing. As such, block chain is gaining traction and broader acceptance by oil and gas industry for its potential to fundamentally change the way certain transactions are conducted. For the sensitive oil and gas industry, there’s a fair amount of appeal in adopting this type of technology. Curious about what the introduction of blockchain could do for the oil and gas industry? Here are some of the major areas.
Let’s find the major areas where O&G Industry can be benefited from blockchain
One of the significant areas of application of Blockchain in oil and gas can be supply chain management. Blockchain eliminates the need for an intermediary; it can offer transactional verification across a network without relying on a central authority. This will further reduce the operation cost, allows the security of data and other relevant information and more also improves the speed of transaction.
Blockchain technology will offer considerable benefits to the existing security challenges that the oil and gas industry is facing. The native decentralized feature of blockchain to store information in hundreds of servers makes it a more secure and resilient solution for data storage.
Blockchain by design should enable greater transparency and efficiency. Sharing digital blockchain information in joint-operating agreements could reduce, if not eliminate, the need for reconciliations between companies and for data hubs controlled by third parties.
Assets are going to pass through lots of different hands before reaching their destinations. Tracking these exchanges and automating payment release is a tedious and time consuming process. Blockchain smart contract feature can solve all the many issues in this cycle by changing the way transactions is carried out. Smart contract creates a more efficient, automated supply chain and improves project expenditure analytics.
The oil and gas industry’s global reach is a complex one with a dizzying array of national regulations and restrictions. Simplifying and improving the supply chain is a high priority for any company centred on profitability. Exploring the benefits of blockchain technology makes not only business sense but also help the business to be competitive.
How Insight Consultants can help you?
Insight Consultants use technology solutions to many of the emerging Oil & Gas Industry challenges. We address emerging business challenges by aligning people with processes and driving operational excellence with technology solutions. We provide 360-degree solutions starting with consulting, solution creation, deployment and roll out of Blockchain based solutions for IoT, supply chain and the oil & gas verticals. So, if you are looking for ways to harness the power of blockchain or would just like to know more,