Blockchain technology is gaining traction in the oil and gas sector — offering innovative solutions for service contracts, pricing reviews, and transaction life cycle support. It has the potential to reduce costs and improve process efficiencies.
According to GlobalData Blockchain in Oil and Gas report, blockchain offers enhanced transparency, compliance, and data security in the industry.
Major companies like ADNOC, BP, Eni, Equinor, Repsol, and Shell are actively developing blockchain to address industry challenges.
GlobalData Oil and Gas Analyst Ravindra Puranik noted that blockchain has evolved beyond supply chain optimisation to support transaction processing with smart contracts.
Consortiums have played a crucial role in standardising protocols and sharing best practices.
As the technology matures, its adoption is expected to increase, leading to improved transparency, efficiency, and security in operations.
Blockchain has diverse applications in the industry, including accelerating digital transformation through sensors and cloud computing.
The tokenisation of physical assets is also promising, as it digitises tangible assets to manage big data and protect sensitive information.
Puranik explains that tokenisation can streamline bureaucratic processes during the production, transportation, and processing of natural resources.
It enhances transparency in tracking resource movement and minimises waste.
Additionally, it helps identify irregularities, strengthening the industry’s reputation amid competition from alternative energy sources.
Despite the initial hype, blockchain adoption is steadily increasing, focusing on practical benefits rather than technological novelty.
Companies are recognising the importance of having a strong digital infrastructure in place.
As sensor technology and the Internet of Things (IoT) gain momentum, blockchain’s role in storing transactions and accounting data on these devices is becoming more significant.
This direct linkage between assets and service contracts reduces processing time and transforms contracting through secure collaboration.
While blockchain adoption in the oil and gas sector is in its early stages, its potential for substantial growth is evident as companies begin to realise its full capabilities.
