Ondiflo, a blockchain platform for the oil and gas industry, has successfully completed its Proof of Value (PoV) project of fluid hauling in East Texas in collaboration with BPX Energy and a selection of the operator’s suppliers on July 30.
Throughout the pilot, during which Ondiflo’s blockchain-based solution was deployed with three water hauling companies (C&J, Common and Select Energy Services), BPX Energy and its suppliers were able to identify substantial operational and financial benefits, including cost reduction by improved efficiency, reduced procure-to-pay time cycles and improved asset utilization.
Ondiflo’s blockchain-based application for fluid hauling provides an automation platform for the optimization of field tracking activities, where tank-level data received from sensors, service orders, field tickets and invoices as well as regulatory documentation are transacted via smart contracts and key-data captured in the blockchain.
With 50 metered wells connected to the Ondiflo platform, sending tank levels every five minutes, over 10,500 hauls have been automatically processed since the start of the project. An average of over 90% accuracy was achieved in haul detection and matching to field tickets by week six. Over 65 truck drivers and 11 dispatchers used the Ondiflo app and one of the companies used their own e-ticketing app connected to the Ondiflo APIs for this project.
The PoV project improved dispatch optimization by projecting service requests out for 48 hours. Savings on the field ticket approval effort and invoice processing efforts were achieved by automatically approving hauls if the volume computed by Ondiflo matched the volume entered on the field ticket.
“Ondiflo’s technology drastically transforms how an oilfield transaction is managed from a paper-based process into the digital age, increasing productivity, reducing costs and creating value,” Balaji Ramakrishnan, BPX Energy’s director of procurement and supply chain, said.
The PoV has demonstrated that the convergence of IoTs, Blockchain technology and data science for legally enforceable automation of the procure-to-pay (P2P) process in fluid hauling during the production phase of an oil/gas well presents solid business value.
Schlumberger, Halliburton and Baker Hughes reportedly kicked off the new year by putting units up for sale, as the three largest names in oilfield services adjust to falling demand.
BW Offshore, a service provider to many petroleum producers, has in recent years built up its own E&P operations through BW Energy, which it plans to spin off first-quarter 2020.
Schlumberger outlined an aggressive cost-cutting plan for its North American operations as the world's largest oilfield service firm contends with sharp declines in U.S. shale activity.