The OOC Oil & Gas Blockchain Consortium has completed a blockchain pilot test to automate payments for oilfield water-handling, as the process of oilfield water-handling requires the management of the huge amount of water extracted and injected during the process of oil and gas extraction.
It has been reported by Reuters that the blockchain solutions implemented during the test cut short the workflow process by nine steps, eventually reducing the completion time from 120 days to just one week.
In addition, the group specified that during the test, the blockchain solution automatically validated 85% of all volume measurements.
The OOC Oil & Gas Blockchain Consortium is a 10-company oil and gas group including major firms such as:
Dutch Shell
Equinor
ConocoPhillips
The blockchain solutions for the pilot test were developed by the Data Gumbo Corporation, a Saudi Aramco-funded Blockchain-as-a-Service company.
The OOC Oil & Gas Blockchain Consortium plans to extend blockchain solutions to production sites following successful pilot test results https://t.co/yi9L0A5aQU — Cointelegraph (@Cointelegraph) June 3, 2020
As per the report, the pilot was conducted in partnership with Nuverra Environmental Solutions, which handled the water disposal of oil wells owned by Equinor. After the successful completion of the test across five Equinor wells in North Dakota, the consortium now plans to implement the blockchain solutions on production sites.
Also, the consortium may implement blockchain across other commodities and services.
Rebecca Hofmann, the chairman of the OOC Blockchain Consortium, noted that the crash in oil prices during the COVID-19 pandemic has accelerated blockchain implementation.
Thus, she estimated that the group could be adopting the solutions this year as it could potentially save millions of dollars.
Source: Cointelegraph | Image: Pixabay