Energy

Oil and gas consortium to start blockchain testing to automate payments

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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.

Interested in hearing more in person? Find out more at the Blockchain Expo World Series, Global, Europe and North America.

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