The Offshore Operators Committee (OOC) Oil & Gas Blockchain Consortium said on June 3 it has successfully completed its first pilot leveraging blockchain technology.
The pilot, developed in partnership with Data Gumbo utilizing its GumboNet blockchain network, proved a platform for automating produced water haulage from field reading to invoice payment. It 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. It was the first industry-wide use of a blockchain-native network for produced water haulage.
The OOC Oil & Gas Blockchain Consortium is a 10-company group including ConocoPhillips, Chevron, Hess, Marathon, Noble Energy, Pioneer Natural Resources, Equinor, Exxon Mobil Corp., Repsol and Royal Dutch Shell, which used the technology to automate payments for oilfield water-handling.
Blockchain, which underpins bitcoin and other digital currencies, is a distributed ledger that can make and verify transactions on a network in real time, offering the potential to speed transactions, cut costs and lower the risk of fraud.
In the Consortium's pilot, the technology was able to reduce the work flow process from 90-120 days to one to seven days, eliminating nine steps. It was also able to automatically validate 85% of all volume measurements, the group said.
Although the test focused exclusively on water hauling, the OCC Consortium plans to expand its use to other commodities and services, it said.
The pilot finished at the end of January, but the process for moving forward with the technology has been accelerated due to the COVID-19 pandemic and this year’s crash in oil prices, said Rebecca Hofmann, chairman of the OOC Blockchain Consortium.
“This could be adopted this year,” she said, adding savings could be in the millions of dollars. “Equinor and others in the consortium are seeing the value and investigating how this can be implemented to bring much needed cost savings back into their companies.”
Recommended Reading
E&P Highlights: Sep. 2, 2024
2024-09-03 - Here's a roundup of the latest E&P headlines, with Valeura increasing production at their Nong Yao C development and Oceaneering securing several contracts in the U.K. North Sea.
Breakthroughs in the Energy Industry’s Contact Sport, Geophysics
2024-09-05 - At the 2024 IMAGE Conference, Shell’s Bill Langin showcased how industry advances in seismic technology has unlocked key areas in the Gulf of Mexico.
Interoil to Boost Production in Ecopetrol Fields
2024-09-03 - Interoil will reopen shut-in wells at three onshore fields, which are under contract by Ecopetrol.
Chevron Boosts Oil, NatGas Recovery in Gulf of Mexico
2024-09-03 - Chevron’s Jack/St. Malo and Tahiti facilities have produced 400 MMboe and 500 MMboe, respectively.
CNOOC Makes Ultra-deepwater Discovery in the Pearl River Mouth Basin
2024-09-11 - CNOOC drilled a natural gas well in the ultra-deepwater area of the Liwan 4-1 structure in the Pearl River Mouth Basin. The well marks the first major breakthrough in China’s ultra-deepwater carbonate exploration.