Blockchain in Oil and Gas – Thematic Intelligence
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Blockchain is emerging as a technology that demands attention within the oil and gas sector. As sensor technology reaches its peak within the industry amid rising adoption of the Internet of Things (IoT), blockchain facilitates the direct storage of transactions and accounting data on these devices. By linking assets directly to service contracts, blockchain significantly diminishes process time and fundamentally alters contracting by providing secure collaboration. The advantages of blockchain in the oil and gas industry manifest through enhanced transparency, compliance, and data security. Although adoption is currently in its early stages, the potential of blockchain in the oil and gas sector is poised for substantial growth as companies increasingly recognize its full capabilities.
What are the market trends in blockchain?
Blockchain is a highly efficient technology for transaction processing and contracts realization. Its shared database architecture eliminates the role of any third parties, thereby making the process more direct. It stores information related to vendor contracts, and payments in an encrypted format and shares it among appropriate parties as per need. By offering a secure platform for undertaking transactions, blockchain technology enables the buying and selling of various commodities, including crude oil, natural gas, and refinery products. It can provide an interface wherein the buyer can directly purchase commodities from the seller without any middleman.
By digitally linking data through unique identifying codes or hologram technologies, blockchain can monitor material movement from source to destination. Land deals, leased as well as acquired, often lacks transparency and could create operational issues for the acquirer in the event of a dispute. A blockchain-based land record management system can nullify such issues. Carbon trading permits companies to balance their carbon emissions by buying or selling credits. Blockchain can help to enhance the method for transferring carbon assets from other emitters.
What are the market dynamics of blockchain in oil & gas?
Globally, the oil and gas industry is subject to various regulations encompassing land leases, worker safety, emissions, waste disposal, and taxation among other things. These are subject to change over different timeframes. This can be simplified with a blockchain platform that grants regulators real-time visibility of the company’s activities. This sort of collaboration improves transparency when multiple stakeholders are involved in the project, which is common in oil and gas. Blockchain can be an efficient tool in ensuring the integrity of data in oil and gas supply chains. As modern supply chains involve multiple companies from diverse geographies, a digital platform can assist in grading different vendors. It can improve payment timeliness and traceability of commodities to boost quality control, thereby strengthening vendor relations. Besides, blockchain can also optimize administrative costs incurred along the supply chain and minimize documentation errors.
In March 2017, multinational energy trader Trafigura introduced a blockchain-based platform in collaboration with Natixis and IBM for the trading of US crude oil. The platform was the first of its kind in commodity trade finance and was aimed at improving the efficiency, transparency, and security of crude oil transactions. Another commodities trading firm, Mercuria, has invested in three blockchain platforms, VAKT, Komgo, and Forcefield. While the first two platforms cater to energy commodities, Forcefield is more specific to the trading of metals.
What are the value chain segmentations in blockchain for oil & gas industry?
According to Globaldata, the value chain for blockchain comprises six segments: blockchain infrastructure, blockchain protocols, p2p networks, blockchain components, blockchain applications, and blockchain services. The blockchain infrastructure segment of the value chain includes the hardware, software, and services used to enable the operation of blockchain protocols and networks. The infrastructure required depends on the specific blockchain protocol and network type. Blockchain protocols provide the technological foundation of any blockchain system. They can be thought of as a foundational layer of code upon which blockchain networks and applications are built. The core idea behind blockchain is its decentralized nature, and since there is no centralized authority involved to make sure it works as intended, protocols are used.
Since blockchain protocols are purely coded, they do not deliver much value without a corresponding network. The network layer, which for blockchain consists of a peer-to-peer (P2P) network, is what brings blockchain to life by connecting participants to enable the sharing and verification of data. The decentralized nature of blockchain means that different blockchain networks cannot directly connect to each other or external sources. Blockchain components are a middleware layer of tools, services, and optional components that enable the operation of blockchain applications and allow connections to other technologies and enterprise software.
Blockchain applications constitute the primary user interface for blockchain protocols and networks. They are the main driver of business value as they provide tangible products and services to end-users. Blockchain applications can be divided into three categories depending on market focus: consumer, enterprise, and infrastructure. BaaS is a type of as-a-service offering that allows businesses to use cloud-based infrastructure and services to develop, maintain, and host blockchain applications. It functions as a web hosting provider, running the back-end operation, including deploying and maintaining the nodes, for a blockchain-based application or platform.
Which are the major oil & gas companies in the blockchain theme?
The major oil & gas companies in the blockchain theme include ADNOC, BP, Eni, Equinor, Gazprom Neft, Repsol, and Shell.
Market report scope
Key Companies |
ADNOC, BP, Eni, Equinor, Gazprom Neft, Repsol, and Shell |
Key Value Chain segments of IoT | Blockchain Infrastructure, Blockchain Protocols, P2P Networks, Blockchain Components, Blockchain Applications, and Blockchain Services |
Scope
This report explores the use of blockchain technologies in the oil and gas industry.
It forecasts the total global blockchain market size till 2030.
It establishes a blockchain value chain and identifies key players across this value chain.
It highlights the use cases of blockchain technology in the oil and gas industry.
It reviews the deals, company filings, hiring, and patent activity related to the blockchain technology.
The report provides an overview of the competitive positions held by technology companies, and oil and gas industry companies in the blockchain theme.
Reasons to Buy
Identify recent technology, macroeconomic, regulatory and industry trends in the blockchain theme.
Identify use cases for oil and gas industry in blockchain theme.
Identify and benchmark key technology companies and their role in the blockchain theme.
Identify and benchmark oil and gas industry companies adopting blockchain technology.
Table of Contents
Frequently asked questions
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What is the value chain segmentation in blockchain?
The value chain of blockchain comprises six segments: blockchain infrastructure, blockchain protocols, p2p networks, blockchain components, blockchain applications, and blockchain services.
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Which are the major oil & gas companies in the blockchain theme?
The major oil & gas companies in the blockchain theme include ADNOC, BP, Eni, Equinor, Gazprom Neft, Repsol, and Shell.
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