Recent news that ExxonMobil’s share price is at the same level as it was 10 years ago highlights the challenges faced by the oil and gas industry in coping with the decarbonization of the global economy.

Application of blockchain in oil and gas industry

ExxonMobil, once the world’s largest company, fell out of the top 10 in the S & P 500 last year. However, unlike many competitors who have begun to diversify from their core businesses, the world’s largest oil giant shows little sign of breaking away from its dependence on oil and gas.

Shell, total, equinor and Eni have all set emission reduction targets, while Repsol of Spain has set a target of zero emissions by 2050 – including emissions from customers using their products. It’s an industry leading ambition, but it seems that other companies will join Repsol soon.

Repsol believes it can achieve two-thirds of its 2050 target by abandoning carbon intensive projects, using cleaner energy to power refineries, adding more biofuels to diesel and gasoline, reducing emissions of burning and methane, and adding renewable energy to the energy structure.

Another way it wants to achieve its goal is to increase the use of digital technology“ Innovation plays a crucial role in achieving this goal, “Clara Rey Garcia, head of Repsol’s entrepreneurial team, said at a recent seminar at Repsol’s headquarters in Madrid. Garcia added that Repsol’s 85 million euro enterprise venture fund aims to promote disruptive technologies such as robotics, big data, artificial intelligence and blockchain to transform the energy industry.

However, for decades, digitization has been a relatively less concerned area in the oil and gas industry, Geoffrey cann, author of bits, bytes, and: the digital transformation of oil and gas, said at the seminar.

Like other economic sectors, the oil and gas industry is generating more and more data, partly because the Internet of things is becoming more and more widely used. These data are being analyzed and interpreted using artificial intelligence and machine learning, and robots are using these data for work.

Cann said that would create more efficiency, but the use of blockchain would be one of the most important factors in the industry clean-up. As the industry announces increasingly ambitious emission reduction targets, it will face increasing pressure to prove that it is meeting its commitments“ Blockchain is something that builds trust between all these different elements, “asserts cann.

This is because it can track and record data in a tamper proof way, “so there is no dispute about whether the data is correct,” he added. Blockchain provides traceability along the length of the value chain.

“It’s clear that actions to achieve Repsol’s goals need to be measured and monitored, but the technology and tools to achieve them are superficial relative to the scale of the problem. Data must be stored in a way that leaves clues of evidence – it must be tamper resistant, auditable, and transparent. This means that if we are to deal with the impact of climate change in a meaningful way, the global energy industry, which is still highly similar, must be led by digitization, “he said.

Finboot, one of Repsol’s backed companies, helps companies in the oil and gas industry (as well as retail and automotive) integrate blockchain solutions into their operations. Juan Miguel Perez, chief executive officer and co-founder, said the technology will play a growing role as the company strives to achieve its sustainability goals“ Measuring goals is the key to progress. We need all kinds of ways to demonstrate our achievements and to see that we are making progress in achieving our goals, “he said.” this will become more and more important as corporate sustainability is more and more reviewed. “

His co-founder, nish Kotecha, added: ‘in an era of money flowing to “data rich companies that understand the value of data,” why do you give money to a company whose data may be in doubt?

Blockchain can not only help the upstream business of the oil and gas industry, but also play a key role in energy trading, not only for large companies, but also for individuals and families who want to buy and sell renewable energy.

Beyond this area, it can also be used to track waste, highlight the inefficiency of the supply chain, and how companies and countries achieve their Paris Agreement goals, and even monitor endangered species.

“Due to the ongoing climate crisis and the scramble for dominance in the Middle East, the world is gradually on the verge of energy insecurity,” Kotecha said. So it’s crucial to think in a more creative way, embrace new technologies, and see how they can break the status quo. ““ If there is any subversive who can do this, it is blockchain. “

Responsible editor; zl

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