Chevron and Shell have successfully digitalized industry balloting using the blockchain
Chevron and Shell, the heavy hitters of the group of 10 major global oil and gas firm have successfully digitalized industry balloting using the blockchain. A blog reported that the OOC (Oil & gas blockchain consortium) guided a blockchain-based system for Authorization for Expenditure (AFE) balloting in partnership with Canadian technology provider Guild one successfully.
On Dec 18th an announcement on the AFE balloting proof of concept (PoC) is the first to initiate of its kind and intends to allow participants to send ballot and make elections digitally using the blockchain technology.
As published and bored by the report, AFEs are used in the oil and gas industry in order to approve capital and expense projects as well as to calculate the working interests by members if a joint operating contract. As AFE balloting has been made manually for years blockchain-powered digitalization intends cut time needed for the traditional paper-based process.
The PoC is aimed at improving the approval process and also provide immutable records of the final working interests automatically.
Chairman of the OOC consortium, Rebecca Hofmann, noted that the PoC was completed by all ten (10) consortium members in less than four months. She noted that the new blockchain based oil and gas industry projects have demonstrated the power of distributing ledger technology as well as its ability to “transform fundamental oil and gas business activities “.
In February 2019, the OOC is aimed at exploring the potential benefits of blockchain technology in oil and gas industry since the day consortium was establish. By a recent announcement the consortium includes a member of 10 to date including Chevron, Equinor,ExxonMobil,CanocoPhilips, Hess, Pioneer Natural Resources, Marathon, Noble Energy, Shell and Repsol.
The OOC awarded a contract to blockchain start up Data Gumbo to plot a project to manage And synchronized wastewater Dara in North Dakota’s oil fields in September 2019.