Implementing Blockchain Technology in Oil and Gas Industry: A Review

Abstract

Abstract The oil and Gas industry has recently transformed itself into a data-intensive industry – artificial intelligence, machine learning and internet of things. With such growth and expansion, distributed ledger technology, commonly known as blockchain, can carry the industry's transformation forward. This technology can help the industry to overcome various challenges such as price volatility, supply chain, accounting, data management and security. It can also help in streamlining various engineering and technical decisions. Technologically, the oil and gas industry has been very innovative – 3-D seismic, hydraulic fracturing, geosteering, imaging beneath salt, etc. However, the administrative and managerial functions are still done in a somewhat traditional way. The Blockchain technology can help the industry become more efficient by streamlining these traditional methodologies. This paper presents the four major areas where the blockchain technology can help the industry overcome various day to day challenges – (1) Supply Chain and Trading, (2) Regulatory, (3) Database Management and (4) Cyber Security. Like any new technology, the blockchain technology might not get a full embrace at the beginning, but the idea is to present a qualitative study about its benefits. The industry currently has little or no knowledge about this technology, which is expected to bring transparency, security and convenience in one place. The objective of this paper is to help the industry peers understand the idea behind this technology and how it can transform the way the industry currently operates. It provides a frame of reference for the industry to realize the potential of this technology and assess its benefits.