The Offshore Operative Committee (OOC) Oil & Gas Blockchain Consortium, comprising of companies like Royal Dutch Shell, Equinor, ConocoPhillips, Exxon Mobil Corp, and Repsol has successfully completed pilot blockchain management program to automate payment, reduce costs and time for transporting wastewater, reported Reuters.
The water haulage program would streamline the process of transferring wastewater and other by-products produced during oil and natural gas extraction. The blockchain pilot automatically measured the volume of by-products and generated invoices in real-time.
The blockchain management system has been developed in partnership with blockchain software developer firm, Data Gumbo. The pilot run ended in late January and turned out to be a success as it reduced the amount of time that was required to transport the wastewater from ‘90-120’ days to ‘7 days’.
The blockchain pilot also reduced the need for human intervention significantly from 16 steps to 7 steps. The automation process also ensured that 85% of volume data on the network gets automatically validated due to the information provided by other parties involved on the network. They are confident that soon, they would be able to verify 100% of the data on-chain.
Rebecca Hofmann, the chairman of the 10-company consortium, was quite happy with the pilot run and lauded blockchain technology for bringing efficiency in their work process. She said:
“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.”
The pilot wastewater management system was undertaken in partnership with Nuverra Environmental Solutions, who managed the water disposal of oil wells. The blockchain management system was tested on 5 Equinor wells located in North Dakota, and all five wells returned high efficiency with the use of blockchain.
The OOC Blockchain Consortium now plans to implement the system with its mainstream production sites.