Can blockchain technologies help the oil & gas industry to evolve?

In order to stay competitive, the oil and gas companies need to innovate as the oil prices are experiencing a slow yet stable recovery. On top of that, the investments in alternative renewable energy sources are increasing. The global oil & gas industry can evolve into a seamless, inter-operable connected environment with the help of new technologies that support blockchain distributed databases and smart drilling.

The alignment of the design, analysis, equipment selection, and implementation needs to be ensured as the drilling projects are experiencing environmental regulations and energy efficiency.

Smart Drilling

Smart drilling guarantees that the projects will have the solid establishment required to keep the industry running for the upcoming decades. This can be achieved by bringing together predictive analytics and connected intelligence. The market certainly has a drive for future growth. Real-time data acquisition, future well development, top-drive automation, and drilling optimization through connected devices will be the contributing factors to it.

Blockchain Incorporation into Oil & Gas

The oil and gas industry has already begun to set foot into the blockchain revolution but the question on everyone’s mind is how fast can it take advantage of the opportunities blockchain can provide.

Blockchain has the capability to reduce the errors and invalid transactions in energy trading. This results in more efficient financial transactions and allowing interoperability. Blockchain can also handle huge amounts of data. This is why data is proving to be the “New Oil” for oil and gas operations.

Blockchain provides a single, immutable record of transactions and documentation between multiple parties. It’s already proving its capability to detect any early signs of equipment failures or degradation.

On top of that, it can even plan and implement the correct maintenance measures before the failure occurs at a much cheaper cost.

This cheaper cost along with modeling drilling and extractions can determine the feasibility of virtual equipment designs. The exact condition can be determined wherever it’s located by gathering real-time data feeds from sensors in an operational asset.

Digital Disruption

Simultaneously improving the productivity, optimizing cost, as well as dynamic remote asset monitoring is only possible if the ‘smart oilfield’ technology is deployed. It’s to provide every critical data continuously in real time without any downtime.

The ideal solution is to connect all the systems and hardware platforms across the operations of drilling, exploration and production facilities. It has to ultimately fulfill the purpose of delivering useful data to Real-time Operation Centers (RTOC) and thereby enabling operators to make better decisions quicker.

The Rig Decommissioning Issue

The global decommissioning cost of outdated and inefficient rigs are one of the biggest challenges oil and gas companies are facing. It’s estimated that more than 500 aging rigs are to be decommissioned by 2022. Because of this, oil companies have to find out an eco-friendly, regulatory-compliant way to decommission the rigs.

The issue arises when they have to predict and address the environmental impacts of various decommissioning methods. It’s very complicated.

Digitalization of Oil & Gas Industry

The legacy systems of conventional technologies helped the oil and gas industry function for a long time. So much so that it basically defines them now. However, with the advent of digitalization, more and more organizations are on the lookout for common technologies that can balance their requirements for uptime, security, and safety with the need to take advantage of digital innovation.

The transformation into the digital realm requires organizations to view it as an opportunity to shift to a new software environment and improve the functional capabilities of their facility. One benefit to shifting to a new software environment is that it can extend the life of traditional legacy systems.

If you think about it, the new digital technologies can really help the oil and companies with achieving significant cost savings and efficiency improvements. This can open huge opportunities to both suppliers and technology users.

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