Upstream Oil and Gas Blockchain is the application of distributed ledgers and smart contracts in the exploration and production phase; upstream operations involve searching for natural resources and extracting them from their respective underground reservoirs. In this segment, hundreds of wells are drilled in both the highly regulated jurisdictions and the geopolitically unstable areas. Upstream oil and gas require proper planning and input research. This is because it is the initial stage, and its outcome impacts the rest of the operations. Although most companies in the industry still use conventional software is for planning and data management, applying blockchain technology yields better results. It reduces wastes, increases efficiency, and improves data management, and much more.
How does Enhelix blockchain work in the upstream oil and gas 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 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 applying Enhelix blockchain solution in the upstream oil and gas sector?
Applying Enhelix blockchain solutions to the upstream oil and gas sector offer so many benefits, some of 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.
EnHelix blockchain technology is beneficial to all phases of production, including the upstream oil and gas segment. EnHelix Marketplace Blockchain system, EnHelix Logistics Blockchain system and EnHelix Settlement Blockchain work together to bring efficiency and transparency, which increases the stakeholders' trust for the company.