OOC Oil & Gas Blockchain Consortium Completes First Blockchain Pilot

Announcements, Blockchain, News | June 3, 2020 By:

The OOC Oil & Gas Blockchain Consortium, in partnership with Houston’s blockchain-as-a-service company Data Gumbo, has successfully completed its first blockchain pilot.

The OOC Oil & Gas Blockchain Consortium was founded to advance industry blockchain technology learnings for the purpose of defining industry frameworks and solutions enabled by blockchain technology. It was established under the not-for-profit organization Offshore Operators Committee and offers membership-based participation. Consortium members include Chevron Corp, ConocoPhillips, Exxon Mobil Corp, Equinor and Royal Dutch Shell, among others.

The consortium’s first blockchain pilot utilized Data Gumbo’s GumboNet blockchain network to automate produced water haulage from field reading to invoice payment. The pilot, the first industry-wide use of a blockchain-native network for produced water haulage, was executed on five Equinor wells in the Bakken field in North Dakota with water logistics and transportation provider Nuverra Environmental Solutions and a midstream disposal company.

According to the consortium, blockchain technology helped reduced current process workflow from 90-120 days to 1-7 days and 16 to 7 steps, requiring zero manual intervention. The pilot was also able to automatically validate 85% of all volume measurements. Additionally, the pilot was able to free up 25%-35% of resources for the operator and trucking company.

“The results of this pilot prove that non-manned volume validations can trigger automated payments to vendors, and showcase the opportunities that exist for blockchain to reduce costs, increase efficiency, provide transparency and eliminate disputes in the oil and gas industry,” said Rebecca Hofmann, Chairman of the OOC Oil & Gas Blockchain Consortium. “This is just the tip of the iceberg for the potential of blockchain in our industry.”

The OCC Consortium said that while the pilot focused exclusively on water hauling, they plan to continue building this solution and expand it to other commodities and services to deliver cost savings and efficiencies to its member companies and the industry as a whole.

“The learnings derived from this pilot show that blockchain is a technology for industry collaboration in oil and gas that benefits all connected parties. The consortium looks forward to leveraging these insights to prompt further adoption and establish key blockchain frameworks and guidelines,” said JD Franke, vice-chairman of the OOC Oil & Gas Blockchain Consortium.