Crude oil is one of the most famous commodities traded in all the world markets. Price movements and reversals are frequent and a large amount of information influences price movements. Currently, the entire system relies on several complicated logs to track the trading and transactions of this commodity. These systems are centralized and very difficult to manage and are open to manipulation, hacking and corruption. The implementation of blockchain technology has the potential to reduce the costs associated with updating, maintaining and securing a trading system. It reduces the costs associated with work, data management, data visibility, settlement delays, dispute resolution, and system communications.
An excellent example of using blockchain technology comes from Gazpromneft-Aero, the operator of Gazprom Neft aviation refueling for airlines. Gazprom Neft, together with S7, has developed and implemented a blockchain-based smart contract (AFSC), which accelerates speed and efficiency in reciprocal settlements while refueling aircraft, and also automates planning and accounting in fuel logistics. This is one of the first implementations of blockchain technology in the Russian market where with this implementation, airlines have the opportunity to make instant payments for fuel without subscriptions or overpayments. It also moves the entire process of bank guarantees and financial risk due to the smart contract itself, and this is effectively reflected in the reduction of staff costs.
The Decentralized Data Exchange for the pipelines in the oil, gas and water supply industries is a distributed system based on blockchain technology that enables the exchange of data between participants, ensuring the integrity and transparency of data, which flows directly into confidence that this data is not maliciously exploited, altered and manipulated. The problems and challenges that arise in accessing and retrieving data from oil and gas companies are the legal and integration challenges of sharing data beyond corporate borders and security policy.
PwC's research outlines the benefits and criteria under which blockchain technology systematically fits into this industry:
- Data sharing between multiple parties
- Update data between multiple parties
- Verification needs
- Complexity of costs and intermediates
- Interactions related to previous transactions
The energy sector is one of the cornerstones of today's modern society. In the development path towards a greener and more efficient system, blockchain technology will play a big role in increasing the efficiency of the entire market. The oil and gas industry is no exception, and in order to achieve this, the digital infrastructure and network currently under development at localized businesses is required. With the optimization and maturation of internal projects, entire industries will move to the next step, namely interoperability and networking.