Blockchain technology is being implemented by many companies in the oil and energy sector. The new-age technology is close to achieving mainstream adoption as more use cases are developed.
A consortium of oil firms has engaged a blockchain startup to create a system for the management of water that is used in the extraction of oil. The system will be used in North Dakota’s Bakker oil fields. The companies that form the consortium include Chevron, Exxon Mobil, and Royal Dutch Shell. The blockchain system will bring increased efficiency to the management of wastewater from oil fields, and help these oil companies to conduct their business better.
Blockchain Firm Awarded Contract to Manage Oil Water
A blockchain startup was awarded the contract to run the blockchain water handling technology. Data Gumbo received the contract from the Offshore Operators Committee (OOC) Oil and Gas Blockchain Consortium on the 10th of September. The pilot program will be used at the oil fields in North Dakota.
One of the companies that is a part of the consortium, Equinor, said that they expect to save over 25% in costs related to the disposal of saltwater. Saving this amount of money will enable the companies to direct it towards other activities which will ultimately benefit the industry.
Data Gumbo will run an automated payment system using their blockchain network. The startup will also use the GumboNet platform for the management and synchronization of data about the wastewater. Having this data on one platform will allow the oil industry as a whole to make better decisions and achieve new levels of efficiency.
According to the EPA, over 2 billion gallons of liquid byproducts from the oil and energy sector come into the United States daily. These fluids come into the country through about 180,000 wells, and it is these fluids that will be managed by Data Gumbo’s System.
Data Gumbo and the Consortium
Data Gumbo has developed a technology for the management of supply chain and payment systems in the oil industry. According to Andrew Bruce, the startup’s CEO, streamlining the various processes in the oil sector will reduce all costs by over 30%.
The Oil and Gas Blockchain Consortium was formed in March and it is tasked with looking at the different proofs of concepts for blockchain networks in the industry. The consortium is the first of its kind in the United States and it will give the American oil industry a huge boost.