The Adoption of Blockchain in the Petroleum Industry
FREMONT, CA – Blockchain technology has created digital waves across many industries, and the petroleum sector is one of them. Shell, a leader in the petroleum industry, started a blockchain division in 2017 to explore, research, and develop blockchain applications for exploration, production, and mobility of renewable energy. It also invested in Applied Blockchain, a startup based in London which helped it develop an internal trading platform powered by blockchain.
Blockchain technology records transactional history safely and securely on independent node systems. If leveraged by the petroleum industry, it can improve operations from mineral rights to identity. It can assist in streamlining back-end processes such as inventory management and supply chain. The information and data stored via blockchain can be shared securely and transparently with regulators.
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The single repository of information facilitated by blockchain can be accessed and managed by all stakeholders of the platform. Blockchain facilitates efficient monitoring of land ownership matters through its secure and transparent smart contracts. It can assist oil and gas corporations in maintaining a clear and unchangeable record of ownership and mineral composition of the land.
The convoluted processes and transactions involved with the stakeholders of the industry are often subject to errors and inaccuracies. It might result in management inefficiencies. The utilization of blockchain smart contracts will offer more accuracy and transparency in transactions with third parties. Taken in by the hike in operational efficiencies, the petroleum sector is steadily implementing blockchain technology.
Integration of blockchain in the transaction processes of track records would enable the secure exchange of tracking data with other corporations. The blockchain would automatically monitor the changes and transfer the funds. The utilization of blockchain technology, in major oil corporations as well as small innovative companies, will help in the creation of new opportunities in the petroleum sector.
Blockchain technology will facilitate the digitization of the supply chain, making it easier to track the raw materials. It can also help in streamlining the processes involved in the oil supply chain. It will not only help in reducing the associated expenditure of upgrading and securing the trading system but will also bring increased efficiency and higher profits to the petroleum sector.