According to GlobalData, a renowned data and analytics business, leading players are looking to use blockchain to simplify transaction processing in order to improve operational efficiency and reduce compliance risks.
Blockchain has gone a long way in recent years, according to GlobalData’s latest study, “Blockchain in Oil and Gas, 2021 Update – Thematic Research,” but it is still a nascent technology.
Blockchain did not properly attract the attention of businesses until 2017. Since then, businesses have established use cases aimed at solving real-world problems in order to gain a deeper understanding of the technology.
“Blockchain as a service (BaaS) holds the key to boosting mainstream use of blockchain technology,” says Ravindra Puranik, an Oil & Gas Analyst at GlobalData.
It enables businesses to experiment with blockchain applications without having to invest in costly in-house resources.
When blockchain is integrated into core technology, it becomes easier to utilize, making it a more appealing option for digital transformation efforts.”
Blockchain technology enables businesses to manage daily activities while removing the need for central records. Traditional workflow management in the oil and gas industry might be overhauled, resulting in increased operational efficiency and cost savings.
Several major oil and gas corporations, including ADNOC, BP, Eni, Equinor, Gazprom, Repsol, and Shell, are building blockchain platforms for their applications in anticipation of these benefits.
“Companies now are seeking to decrease operational costs amid demand uncertainty caused by the COVID-19 outbreak and the expected migration to low-carbon energy sources,” Ravindra adds.
In this case, blockchain could be really beneficial. Procurement and logistics, energy trading, and land and lease compliance are just a few of the areas where the technology can be used.”
