Downstream Oil and Gas Blockchain and Petroleum often refers to activities related to refining, distribution, and sometimes LNG. They all lead to the distribution of gas products to terminals, trucking, and gas stations. It is the final stage where crude oil or LNG is processed to the various end products. These products include jet fuel, regas natural gas, lubricants, synthetic fiber, gasoline, plastics, and much more. Downstream operations involve three major enterprise participants; the LNG terminals, independent refiners, and the globally integrated refiners. As a consumer-facing business, the success of both participants severely depends on the global geopolitical trends, which affect the price of crude oil. Luckily, the introduction of EnHelix blockchain technology has dramatically impacted the downstream operations for both independents and globally integrated refiners and LNG operators.
How does Enhelix blockchain technology work in the downstream oil and gas blockchain and petroleum sector?
EnHelix is software leader in providing commodity trading and logistics management solution driven by integrated Artificial Intelligence, Blockchain, and AWS cloud to serve commodity businesses of size and kinds. EnHelix blockchain is deployed entirely on the cloud. The software platform works on top of the best Enterprise-grade framework Hyperledger Fabric on super scalable AWS services – business solutions and technologies packaged for a faster blockchain production system. Enhelix blockchain solutions for the downstream oil and gas sector comprises of three major systems which include:
- Financial Reconciliation: As earlier mentioned, most of the upstream segment work is complex. This complexity often brings together different companies to work on one project. Deciding the role of each company, or even allocating the resources becomes a challenge. Verifying the labor hours is also time-consuming. With the help of the EnHelix blockchain distributed ledger technology, oil and gas companies can record and process data in real-time. The nature of the ledgers cannot be deleted, changed, or forged.
- Quicker Payment: Most activities carried out in the oil and gas sector require both the workers and verification of work completed for payment to be invoiced and processed. With blockchain based solution, once services are completed, the system automatically shares the completed work order to service providers for payment processing
- Supply Chain:Upstream segment supply chain is complex with many stakeholders, vendors and service providers to operate upstream assets. Blockchain can streamline the supply chain with distributed ledgers among all key players to increase payment processing and transparency
- Improved Transparency: Blockchain carries out lots of activities on the upstream oil and gas sector without involving trust keepers or intermediaries. By excluding intermediaries in the chain, blockchain increases transparency and connects all stakeholders well.
How does EnHelix blockchain work in the downstream oil and gas blockchain and petroleum sector?
EnHelix is software leader in providing commodity trading and logistics management solution driven by integrated Artificial Intelligence, Blockchain, and cloud to serve commodity businesses of size and kinds. EnHelix upstream oil and gas blockchain solutions for the upstream oil and gas sector comprises of three major systems which include:
- EnHelix Marketplace Blockchain system: Here, energy and commodity firms can conduct business transactions using smart contracts in order to reduce paperwork and reconciliation for post-trade and order operations.
- EnHelix Logistics Blockchain system: This was created for midstream, cargo brokers, and logistics companies to streamline their scheduling, nomination, and billing operations with improved speed and transparency using distributed ledgers.
- EnHelix Settlement Blockchain: This is a fin-tech system for all oil and gas, energy, commodity businesses to process, audit, and track all payments and fees.
What are the benefits of blockchain technology in the downstream processes?
Refineries/LNG: Hundreds of processes are needed to transform crude oil to diesel and gasoline or regas natural gas. Also, processing large amounts of data and keeping data security is quite challenging. With the help of blockchain technology, undertaking such processes within the set parameters becomes easier. Basically, blockchain links the previous data blocks to the next ones. When the oils and gas are processed, the process verifications and test results become easy to store in the ledger.
Transportation: Oil and gas products are moved from the refinery to the retailers through train or truck. Although management of such logistics is usually done with the legacy systems, blockchain is more useful. This is because the large fleets require a more robust platform other than the convectional software used for small fleets. Also, cargo security, vendor validation, and vehicle tracking can only be efficiently performed with efficiency when using the distributed ledger system. The ledger system does not only store the daily data but also share it in real-time. Lastly, blockchain creates many opportunities for consumer-facing services. The benefit extends to consumers by facilitating sales and makes them safe.
Smart Contracts: Smart contracts are one of the most significant features that blockchain offers to any industry. These types of contracts automate all transactions carried out by the counterparties, even without using an intermediary such as an attorney or bank. Since the oil sector involves more than one million transactions per day, using blockchain improves transparency and efficiency. It also makes it possible to maintain and regulate workers.
Regulatory Clarity: The regulatory opportunities which take place in the downstream operations happen due to avoidance of the statutory regulations. Different security standards and rules govern each state. They are, however, accidentally our purposely mishandled due to malicious acts and high employee churn. Using blockchain technology in data entry ensures that corruptions cases are reduced and regulations are followed well.
Finally, EnHelix oil and gas blockchain technology is highly beneficial to the downstream oil and gas blockchain and petroleum segment. EnHelix Marketplace Blockchain system, EnHelix Logistics Blockchain system and EnHelix Settlement Blockchain helps in the management of various products and ensure transparency while maintaining efficiency.