Bitcoin Global News (BGN)
March 04, 2019 -- ADVFN Crypto NewsWire -- The Offshore
Operators Committee (OOC) of the United States has formed a
consortium focused on bringing the benefits of blockchain
technology across the oil and gas industry supply chain. Blockchain
technology is constantly sought out for its benefits to supply
chain management for its ability to automate data collection,
transactions and integrate financial transactions and contracts in
real time with the movement of a product.
“Creating the OOC Oil & Gas
Blockchain Consortium is a significant step toward establishing key
blockchain standards, frameworks and capabilities for the oil and
gas industry, Blockchain technology is a catalyst for reimagining
the way we do business and this consortium represents a
collaborative effort to explore the technology’s potential and
leverage learnings to drive industry adoption.” - Rebecca Hofmann,
chairman of the board of directors
The consortium will pool funding to
be organized by a board of directors. The board was chosen from a
the seven founding member companies: Chevron, ConocoPhillips,
Equinor, ExxonMobil, Hess, Pioneer Natural Resources and
Repsol.
Finding Common
Ground
Overall, the initial focus is
industry collaboration to bring common grounds for understanding
the new technology and what it has to offer. Next the group will
look to execute pilot projects of several multi-function use cases
across the oil and gas value chain. Eventually, they plan to
develop more focused technical Committees to drive industry
alignment and harmonize blockchain-related standards. The group
cites their objectives as:
-
Learn, lead and leverage emerging
blockchain technology for the oil and gas industry by evaluating
the technology, completing proofs of concept, and conducting
pilots;
-
Explore the benefits and industry
application of blockchain including faster transacting, reduced
disputes, improved safety and lower costs;
-
Facilitate blockchain adoption
through industry standardization of data, processes, security and
compliance;
-
Drive standard setting through
industry alignment on key blockchain components, including
governance structures, smart contract parameters, consensus
protocols and cryptology requirements.
The group has already established
four aspects of the value chain to address with pilot projects in
2019. They will look to digitize Truck Ticketing on water hauling
from wellsite to disposal site to lower costs and reduce the
instances of dispute. The sharing and approval process of AFE
Ballots will be piloted in a digital format as well, which will
reduce the cycle time, increase transparency and eliminate the
potential of disputes. The JIB Exchange process will be integrated
with the receipt and payment process for similar benefits of
reduced cycle time, costs and potential for disputes. As
potentially the most long term impactful pilot, the group will look
to automate digital rights ownership of seismic data, creating an
accessible digital library of the data that is connect to live data
feeds.Their research will not be limited to blockchain
technology, but also include related technologies that can
enhance its potential:
“The consortium is eager to begin
building a foundational network of business partners to
collaboratively advance use cases within exploration, finance, IT,
land, operations and supply chain, while also leveraging learnings
amongst our members.” - JD Franke, vice-chairman of the board of
directors.
By: BGN Editorial Staff