Page 47 - Q4 Oilservers Newsletter

DECEMBER 2022. Q4. VOL.17 DECEMBER 2022. Q4. VOL.17

EMERGING 2. Using blockchains, crude data will be stored on
oil transactions such as navigating a blockchain network
Undoubtedly, TECHNOLOGIES; services contracts, price discovery, that is accessible in
Blockchain BLOCKCHAIN and other transaction cycles can be real-time.
technology with its digitized as this guarantees optimal
many benefits when IN THE OIL AND security, enhanced transparency, and 5. It is important
explored and utilized GAS INDUSTRY efficiency in the transaction processes. for oil and gas
can deliver This technology can also aid in the companies to
groundbreaking Chelsea Ojiaku reduction of operational costs and effectively monitor
changes to the Corporate Communications Intern the elimination of operational delays and manage land sale
record-keeping and Oilserv Limited during transactions. records. Important
financial transactions documentation could
of oil and gas 3. A private blockchain network be st ored on t he
companies is capable of safely storing track blockchain, which can
records of employee and contractor create inalterable land
certifications (HSE training, welding, etc.) records
raditional systems designed be designed to deal with critical millions of barrels of oil and cubic
it enhances trust between companies
to manage oil and gas operations such as petroleum meters of gas being traded daily,
and stakeholders.
transactional operations do not product tracing, international trade it is safer and easier to manage
6. B loc k c hain
totally guarantee the provision
technology can be used to effectively
of overall security. The emerging
track regulated substances like changes to the record-keeping and
blockchain technology is a
hydrocarbon at each stage of the financial transactions of oil and gas
promising tool that can be used to
supply chain process. This can help companies to ensure a more secure
facilitate secure and cost-saving
foster accountability and transparency form of collaboration in the sector.
transactions between oil and gas
in the industry and uphold ethical
companies and their stakeholders.
standards.
Blockchain is a digital record of financial
transactions and operations, that is
secured by means of cryptographic
methods and can be designed to
record the transaction of anything
of value, information is stored in
‘blocks’ on a ‘chain’ but not literally.
One of the innate characteristics of
a Blockchain network is that it is not
owned by one entity, a network of
computers makes up a blockchain
network.

Seven American oil and gas companies document protection, and bidding for
4. The oil and gas industry is
including industry giants ExxonMobil rights for oil exploration operations. sensitive, complex, and lengthy
one of the most regulated in the world
and Chevron have come together to Below are some uses of blockchain trade contracts between the parties
with protocols and processes deriving
become the first blockchain consortium that should be explored by Oil and involved and facilitate the effective
from different regulatory authorities
to explore the benefits of blockchain gas companies; distribution of oil and gas across
ranging from environmental, and legal
technology in the energy sector. regions and borders.
to taxation. Regulatory authorities Undoubtedly, Blockchain technology
According to researchers, 1. The oil and gas industry
will be able to optimize visibility in with its many benefits when explored
Blockchain-smart technologies can being a complex and busy one with
the industry as all the transactional and utilized can deliver groundbreaking

44 45