Blockchain Applications in Oilfield Underground Injection Operations

Abstract

Abstract This research project has successfully built a Distributed Ledger Technology (DLT) based prototype using R3 Corda open source. Its purpose applies in the oil & gas underground injection control (UIC) operations for the underground aquifer protection. This DLT prototype is a permissioned network that allows oil & gas companies to create, disseminate, and trace immutable records. The network enables oil and gas companies, government regulatory agency, and all other participants to share secure records such as well information while maintaining data integrity, traceability, and security. The purpose is to create a network of trust among all the stakeholders in the UIC processes for underground aquifer protection. In this DLT network, a company submits well information, which will be digitally signed and notarized. Unauthorized changes to the information, ownership, or history will become infeasible, thanks to the underlying cryptographic technologies of DLT. The network designs so that information stored and communicated will have a high level of trustworthiness. Every participant in the network can get simultaneous access to a common view of the data. Corda platform also provides multiple functionalities, e.g., Smart contract, Vault, Identity Management, Scheduler, Notary Services, etc. Many of the functionalities automate the data processing within the DLT databases. This project's results expect to enhance public safety and improve the aquifer protection review and operational processes. Kern County uniquely poises for a project to develop more streamlined, effective, and entirely digitized DLT-based workflows that will secure regional environmental data integrity. Water contamination is a primary concern in a region where water and petroleum play vital roles in the economy. Both industries and regulatory agencies pay close attention to environmental quality. Data integrity is a primary issue concern for those that monitor and analyze environmental data. Monitoring and forecasting based on available immutable data are imperative to mitigate complications. We have changed the manual workflow into DLT applications which takes advantage of built-in functionalities. The new review process can avoid repetitive reviews among all participants and shorten the approval time. The embedded smart contracts on the DLT network will also help automate the workflows, and therefore, will be able to help eliminate human errors and improve the turnaround time. The prototype model proves the concept of using DLT. Our research work demonstrates DLT successfully implement into energy technology. The prototype model will further expand to all the UIC processes, such as thermal, wastewater disposal, waterflood, gas injection & disposal, etc. It is a substantial cost and time savings for all the oil and gas companies. The results of this analysis could provide the government with valuable information for significant policy and regulation decisions to further benefit the community and society.