With numerous raw materials, storage facilities, and modes of transportation involved, the oil and gas supply chain/asset management network is extremely complicated.
It is quite challenging to link the dots throughout the oil and gas supply chain because many of these phases are completed in isolated settings using manual and non-digital techniques. Business leaders frequently have to deal with bad or incorrect data among a massive volume of unorganized information that makes it challenging to make accurate decisions. There are several problems with documentation, ranging from inadequate records, differences between nations, and burdensome manual operations that are still primarily carried out on paper. Within this industry, clipboards, whiteboards, or spreadsheets are used to record important information, so not all essential stakeholders have access to this critical data.
Due to this, many businesses want to use blockchain in their business transformation efforts. Blockchain functions as a digital and distributed ledger that holds information blocks which are protected by cryptographic hashes that cannot be undone or changed, unlike traditional databases which allow users to modify and delete information and data. As an extremely transparent and trustworthy technology, blockchain allows for the visibility of every piece of data to all stakeholders, based on their responsibilities.
The oil and gas supply chain can use blockchain in a variety of ways to address its top challenges.
|Top Challenges in the Energy Sector||Blockchain Solutions|
|Supply Chain Management||Oil companies must manage a complex supply chain that includes a range of suppliers and contractors.||Blockchain can improve how to track the movement of oil and gas products through the supply chain, enabling greater transparency and traceability.|
|Oil companies must manage a wide range of assets, including drilling rigs, pipelines, and other equipment.||Blockchain allows track and trace of ownership and movement of assets such as drilling rigs and pipelines, enabling more efficient asset management.|
|Oil companies generate a large amount of data, which must be managed and analyzed to make informed business decisions.||Blockchain can store and manage data related to the oil and gas industry, including exploration and production data, environmental data, and regulatory compliance data.|
Overall, this industry will benefit from the accuracy, efficiency, and increased ROI across the chain by utilizing blockchain to establish a private blockchain network to support the transaction life cycle across all stakeholders. The track-and-trace of crude oil, cross-border chain-of-custody for safety certificates, oilfield asset management, digitization of crude oil transactions, administration, management, and sale of carbon credits are just a few of the energy sectors’ business operations that can benefit from the inherent advantages of blockchain.