Oil and gas giants sign deal to implement blockchain technology

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The applications of blockchain technology seem limitless, and now some of the largest gas and oil companies in the world have formed a blockchain consortium that will be used to help to improve the administrative efficiency in the Bakken Shale oil field in North Dakota.

The OOC Oil & Gas Blockchain Consortium, which will include such members as Exxon Mobil Corporation, Chevron, ConocoPhillips, Royal Dutch, and Equinor, among others, has awarded the contract to Data Gumbo to create the technology. This new pilot program will be used for the water handling services in the North Dakota shale field.

While this platform will be used in North Dakota, it is expected that it will be tested to see how effective it can be used in operations across the globe. With many seeing the great benefits that blockchain has to offer, it is expected that this initiative will help to improve the overall efficiency of the administrative services of this field, as well as reduce operating costs.

According to Rebecca Hofmann, chairman of the Board of Directors of the OOC, “Creating the OOC Oil & Gas Blockchain Consortium is a significant step toward establishing key blockchain standards, frameworks, and capabilities for the oil and gas industry. Blockchain technology is a catalyst for reimagining the way we do business and this consortium represents a collaborative effort to explore the technology’s potential and leverage learnings to drive industry adoption.”

According to a release, there are four objectives that the consortium hopes to achieve by using this technology. They include:

• Learning how to use the technology for additional uses across the globe.
• Evaluating to see if the benefits will include faster transactions, reduction of disputes, and improve safety as well as lowering costs.
• Creating an industry standard for data, security, processes, and compliance.
• Create standards that can be used by other agencies, including government agencies and regulators.

Last week, it was announced that Sinochem Energy Technology Co Ltd was partnering with Macquarie Group and Royal Dutch Shell to build a new platform that will be used for trades and settlements of crude oil.

This new platform is currently in the early stages, as they are looking for strategic investors to help in the creation of the platform. That may mean that it is at least a year or more away before that platform is operational.