What if someone figured out how to use blockchain technology to revolutionize the oil and gas industry? What would that look like, I wonder.
It all started with an old friend of mine, now a senior official in the oil and gas industry, approached me after reading one of my recent Forbes articles on the blockchain. He mentioned how he was intrigued by my opinion into this emerging field but also felt it had tremendous potential for his sector, which is at once both highly complex yet still critically important to human life as we know it—oil and gas.
Blockchain has moved past its status as a niche technology and is now being looked at as one that can transform many traditional industries by bringing digital automation, security, and potentially large cost savings. Shareholders have been pushing oil and gas businesses to cut expenses while increasing earnings, putting them under pressure. Blockchain can help the oil and gas supply chain by automating numerous procedures and providing greater transparency.
Three US oil-company groups including Chevron and Exxon have teamed up to become the first blockchain consortium for the sector. The consortium seeks to determine the potential benefits of blockchain on oil and gas markets. The technology has the potential to improve the efficiency of the oil and gas industry for companies by reducing operational costs and eliminating operational delays, as well as increasing transparency to the industry.
This article explores a few potential applications of blockchain technology to streamline the oil and gas industry.