Blockchain News

Oil and gas consortium to start blockchain testing to automate payments

The Texas-based OOC Oil & Gas Blockchain
Consortium, consisting major players like Chevron Corp, ConocoPhillips, Exxon
Mobil Corp, Equinor, and Royal Dutch Shell, will soon start testing the
blockchain technology to lowering administrative costs in their field
operations, along with reducing payment disputes and risk of fraud.

For this purpose, as
initially reported by Reuters
, the Group has given a contract to
Houston-based software company Data Gumbo to pilot blockchain for water
handling services in the Bakken shale field in North Dakota.

The pilot project will be using Data Gumbo’s
blockchain technology to automate payments and expected to generate around £3 billion
annually in cost savings for the oil and gas water business. According to Data
Gumbo chief executive Andrew Bruce: “There is going to be a huge amount of cost
taken out of the whole supply chain.”

Late last month, a
report from Navigant Research
argued the market for communications nodes
and associated infrastructure for water and gas utility networks is estimated
to go above £1.97b in 2019 and is expected to reach £2.22bn in 2024. The report
found that after 2024, the rising market share among LPWA solutions is expected
to cause communications infrastructure revenue to decrease, even as equipment
and node shipments continue to increase globally.

In June, Global Market Insights had estimated the blockchain in energy market would see 50% profits to reach valuation of £2.43 billion by 2025. Growing complexity of power grids owing to increasing integration of renewable energy sources along with burgeoning demand for energy efficient systems for optimising the grid operations will boost the market size. Eminent players operating in blockchain in energy market include Oracle, Accenture, SAP, Power Ledger, and Conjoule among others.

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