Skip to main content

One of the most popular technologies in the oil and gas industry in 2018 - Blockchain





New technologies are infiltrating the traditional oil and gas industry at an unprecedented rate. New technologies such as artificial intelligence, cloud computing and 3D printing are constantly subverting the traditional oil and gas industry. With the virtual digital currency market go hot, blockchain technology is also getting hot, is considered another major disruptive meaning of the core technology.


According to S & P Global Platts' official website, just last Thursday, Standard & Poor's Global Platts announced that it is deploying a proprietary security blockchain network platform to allow market participants in a more efficient and secure environment Weekly stock oil storage data is provided to FOIZ, the UAE's official oil regulator and regulatory agency FEDcom.


FOIZ has the largest commercial storage capacity of the Middle East product oil. As the exclusive publisher of FOIZ weekly oil storage data, combined with FEDcom and 11 terminal operators, Standard & Poor's Global Platts has developed a comprehensive commercial deployment of blockchain distributed ledger technology. Platts announcement said, "This blockchain innovation will promote the unstructured process of terminal vendor communications and ensure its security." The technology will reduce the need for the regulatory agency FEDCom to manually manage data and pass Automatically validate numbers to improve data quality to avoid human error.


Energy sector embraces blockchain


Blockchain into the energy sector is actually not the first time. Energy giants like BP and Shell have long begun to revolutionize the way energy is traded using blockchain technology.


As early as November 2017, BP, Shell and Norwegian National Oil Company formed a consortium with many international traders and financial enterprises to announce the establishment of a blockchain digital platform based on merchandise trade, initially expected to come out by the end of 2018. According to a report from Bloomberg on Monday, they have now tested the system with an oil tanker that has been sold three times before the cargo reaches the final owner, China National Chemical Company. The transaction verification time has been reduced from the previous "three hours under normal circumstances" to 25 minutes, and the risk of taking a long time to resolve was eliminated.


As time goes on, in June 2017, BP and Italy's Eni successfully completed a pilot gas and oil trading project using blockchain technology developed by Canadian blockchain startup BTL Group. David Eyton, BP's director of technology, said: "The use of blockchain may give us a competitive edge." Halford-Thompson, co-founder and CEO of BTL, said: "Our collaboration with BP has demonstrated that blockchain technology can Achieve risk control and save costs, and provide a successful blockchain technology application to the energy market.We are very excited by the success of the Blockchain Technology Pilot, which will enable more energy companies to understand the benefits of blockchain technology in the future And identify the areas that you can apply. "


And on January 18 this year, Shell Trading Internationa acquired shares of Applied Blockchain, an application blockchain.


Blockchain to promote the oil and gas industry wave of change


Oil and gas trade around the world. Globally, large oil inventories are stored, ordered, shipped and distributed through a variety of channels, including manufacturers, suppliers, contractors, subcontractors, refiners and retailers. Trying to track the real-time transfer of crude oil basically impossible. In the event of a flaw, productivity and production levels will decline, if serious, goods may also be lost and so on. This means billions of dollars will result in the loss. By introducing blockchain technology, not only can the transaction become more transparent, allowing everyone to track the transaction, but also reduce costs and ensure safety.


Edward Bell, commodities analyst at NBD Bank of UAE, said: "One of the big implications of the technology (blockchain) for the development of the oil industry is that the way it deals with petroleum and its related products will change. Ideally, the technology will be more accurate Manage and control risks. "


As James Rilett, S & P's senior director of global innovation and digital strategy, puts it, "This time we work with Fujairah, we believe that by providing a full blockchain deployment to market participants, Increasingly important data on global oil markets As part of our ongoing commitment to digital transformation and the provision of innovative solutions in the energy sector, we are pleased to have had the opportunity to engage with market participants to discuss ways to deploy blockchain technology more widely, To help improve efficiency and manage risk in a safe environment. "


With regard to blockchain technology, McKinsey said in a report that the blockchain is the core technology that has the most potential to trigger the fifth wave of disruptive revolutions following steam turbine, power, information and Internet technologies. The arrival of any revolutionary technology will inevitably bring about changes in the talent market. In the longing for new technical personnel, it will inevitably eliminate some personnel. Behind blockchain technology drastically reducing the cost of oil trading means more positions will no longer be needed. For example, with the blockchain, people who had spent hours checking each contract or document would no longer be needed. David Shrier, an associate researcher at Oceanside Business School at Oxford University, said: "There are hundreds of office professionals in finance, logistics, operations and accounting to go first."

Comments

Popular posts from this blog

the digital cavalry for the oil and gas industry is coming - the world's first digital drilling vessel is released

According to an information from GE's official website, GE and its partner Nobel Corporation jointly launched the world's first digital drilling vessel on Thursday. The goal of the digital drilling vessel is to reduce the operating costs of the target equipment by 20% Failure warning issued before month to improve drilling efficiency (learn more about high efficiency procurement platform for oil and gas click here ). Digital transformation has long been a new term, but the oil and gas industry has not yet widely accepted it until after the oil price downturn in the past few years, digitization has gradually attracted more attention. Today, people are more keen on pursuing higher profits than high volumes, and digitization is one of the tools. The birth of the world's first digital drilling vessel is a solid step forward in exploring and releasing the potential of digitizing at sea. The world's first digital drilling rig Well-known drilling contractor Nobel Co...