Distributed ledger solutions are disrupting and innovating in the oil and gas energy sectors, bringing about unprecedented change. Blockchain technology delivers trust in a way that has not been conceivable in the past. It impacts what we can do digitally, how we do it and who can participate. Embracing blockchain applications is essential for the oil and gas industry. New digital business models are needed, such as license solutions. There is an increased need for digitisation and auditability. The big picture is that a global distributed platform/s and databases are needed that are driven by 360 disruptive innovative digital technology, blockchain, artificial intelligence and IoT technologies.
For the oil and gas industry, digital provides opportunities for cost efficiency as well as increasing operational agility. This is beneficial for managing volatility and improving opportunities to grow. They need to create new business models and drive new revenue streams, improve operations by driving automation upstream and downstream, and realise productivity gains in the back office.
It is not a question of whether digital transformation evolving with the distributed ledger will happen, but in fact when, as it is becoming a norm already in many cases. Digital models built on blockchain, artificial intelligence and the Internet of Things can help create platform as a service solutions in the oil and gas industry, which will be hugely beneficial for firms. Examples of potential benefits of embracing blockchain include those for record keeping for the static registry, identity and smart contracts. There are also benefits for transactions such as for the dynamic registry, payments infrastructure and verifiable data.
It is the belief of the World Economic Forum that blockchain technology and smart contracting will offer opportunities for greater automation of transactions as well as increased levels of transparency in the oil and gas global value chain. This is thought to have benefits in terms of bringing down costs for players within this value chain, which will be advantageous for many.
Imagining the world in just five or ten years’ time is difficult, as the speed of change, including in the oil and gas industry increases tremendously, having a significant and far-reaching disruptive effect on this sector. It would be very easy to sit back and underestimate the speed and potential of this change. Oil and gas sector companies need to consider what they are doing and take action now to drive change that will ensure they remain competitive in the future.
The following research done by Dinis Guarda, reflects and expands on these ideas. You can read more about this in the following slideshare.
Learn more about blockchain, AI and IoT change in the oil and gas sector.