Blockchain in oil and gas: a collaborative approach

2019 ◽  
Vol 59 (2) ◽  
pp. 586
Author(s):  
L. C. Gallacher ◽  
D. Champion
Keyword(s):  
Value Chain ◽  
Oil And Gas ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Multiple Stakeholders ◽  
Potential Cost ◽  
Gas Industry ◽  
Blockchain Technology ◽  
Distributed Ledger ◽  
Geographical Regions

Blockchain technology is a distributed ledger of data, vetted before acceptance, encrypted and shared among parties (depending on the configuration) authorised to view it. Due to the potential cost savings, revenue generation, efficiency gains and security; governments, organisations, companies and consortia across many industries are developing proofs of concept with two in oil and gas reportedly now in production. The value chain in the oil and gas industry is characterised by many remote working locations across different geographical regions; involving multiple stakeholders and regulators each with differing criteria to be met. Many opportunities for improvement across the oil and gas value chain have been identified and some are beginning to be addressed by proofs of concept and live blockchain platforms. However, these are being developed via discrete consortia and not as part of a cohesive industry strategy. Standards to promote understanding and adoption are being developed at the global, national and industry level, but this is an area currently lacking in the oil and gas industry. This paper highlights activity in other industries and suggests that the recently formed OOC Blockchain Consortia of Oil and Gas industry participants, if extended to statutory organisations, regulators, standards organisations and academia could be the forum required to accelerate understanding and adoption within the industry to release the currently untapped value.

scholarly journals Crypto Hash Algorithm-Based Blockchain Technology for Managing Decentralized Ledger Database in Oil and Gas Industry

J ◽  
2019 ◽  
Vol 2 (3) ◽  
pp. 300-325 ◽  
Author(s):  
Lukman Adewale Ajao ◽  
James Agajo ◽  
Emmanuel Adewale Adedokun ◽  
Loveth Karngong
Keyword(s):  
Embedded System ◽  
Petroleum Product ◽  
Oil And Gas ◽  
Research Work ◽  
Oil And Gas Industry ◽  
Product Distribution ◽  
Gas Industry ◽  
Blockchain Technology ◽  
Distributed Ledger ◽  
Hash Algorithm

This research work proposes a method for the securing and monitoring of petroleum product distribution records in a decentralized ledger database using blockchain technology. The aim of using this technique is to secure the transaction of distributed ledgers in a database and to protect records from tampering, fraudulent activity, and corruption by the chain participants. The blockchain technology approach offers an efficient security measure and novel advantages, such as in the transaction existence and distribution ledger management between the depot, transporter, and retailing filling station. Others advantages are transparency, immunity to fraud, insusceptibility to tampering, and maintaining record order. The technique adopted for this secure distributed ledger database is crypto hash algorithm-1 (SHA-1)-based public permissioned blockchain and telematics, while this telematics approach is an embedded system integrated into an in-vehicle model for remote tracking of geolocation (using Global Positioning System (GPS)), monitoring, and far-off data acquisition in a real-time. The scope of the data in the secure distributed ledger database (using blockchain) developed are identification (ID) of the tanker operator, Depot name, Source station ID, Destination station ID, Petroleum product volume, Transporter ID, and Geographic automobiles location. This system proved to be efficient, secure, and easy to maintain as it does not permit any individual for records tampering, but supports agreement of ~75% of participants in the chain to make changes.

How to avoid aches and pains in your joint ventures

2016 ◽  
Vol 56 (2) ◽  
pp. 559
Author(s):  
Brent Steedman
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Oil And Gas ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Capital Allocation ◽  
Operating Efficiency ◽  
Global Business ◽  
Gas Industry ◽  
The Right

The Australian oil and gas industry is in a period of substantial challenges, including a significant decline in oil prices, fluctuating spot gas prices, a relentless drive for operating efficiency, and tight capital allocation, together with increased regulatory scrutiny and a reputation for below-standards productivity. On the upside, these market challenges provide significant opportunities for companies to bring in new investors, implement new operating models, apply innovation to update processes and practices, and restructure activities. Making material step-changes, requires companies to review, amend, and update joint venture operating agreements (JVOAs). KPMG has worked with many of Australia’s leading oil and gas companies on a range of joint venture engagements. This extended abstract outlines why JVOAs need to be reviewed with respect to the following key opportunities and challenges: Fast-changing global business operating models. Available cost savings by eliminating inconsistent management and operating models between joint ventures. Planning for potential restructuring, including separation of infrastructure (e.g. plants, pipelines, support) from reserve ownership. Sharing of services (e.g. maintenance and logistics) between unrelated joint ventures. Transparency of costs and asset performance. Improved joint venture governance (not more or over-governance) between participants to attract investment. Effective resourcing, noting the right transition of capabilities between deal-makers and joint venture operators. With this extended abstract the authors aim to provide ideas for consideration. Each of these ideas will impact JVOAs. The authors’ proposition is that now is the right time to complete a comprehensive review of JVOAs to enable organisations to move fast as new and innovative opportunities arise.

Integrating Cloud in Engineering, Procurement and Construction Contract

2020 ◽  
Vol 17 (2) ◽  
pp. 893-901
Author(s):  
Naqiyatul Amirah Mohd Said ◽  
Nur Emma Mustaffa ◽  
Hamizah Liyana Tajul Ariffin
Keyword(s):  
Cloud Computing ◽  
Value Chain ◽  
Construction Projects ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Technical Aspect ◽  
Financial Risks ◽  
Gas Industry ◽  
Course Of Action ◽  
Oil And Gas Companies

Engineering, Procurement, and Construction Contract is a project delivery method in the oil and gas industry. However, the complexity of Engineering, Procurement and Construction projects inevitably leads to issues of project management, risk and technical to occur. Therefore, oil and gas players demand a course of action in minimizing the issues arise in this project. Digitalization in the oil and gas trade indeed offers benefits in the upstream value chain of exploration, development, and production, which Engineering, Procurement and Construction projects take place. Oil and gas companies had been focusing too much on digitizing technical work until the non-technical aspect has been abandoned. Therefore, this study presents and discusses the issues in Engineering, Procurement and Construction contract specifically in the Malaysian oil and gas industry. This is a descriptive study and the methodology used is essentially based on the review of the literature in relation to Engineering, Procurement and Construction contract and the findings of a pilot study in relation to Engineering, Procurement and Construction contract and cloud computing. The analysis revealed that the characteristics of cloud computing in relation to the adoption of Engineering, Procurement and Construction contract helps in empowering collaboration among stakeholders, allow oil and gas companies work highly automated, improve the performance of upstream oil and gas industry, improve speed and minimize financial risks, delayed in schedule as well as improving the quality of the project.

scholarly journals Corporate Environmental Disclosures of Oil and Gas Companies in India: An Analysis of Executives’ Perceptions

2021 ◽  
Vol 16 (3) ◽  
pp. 861-879
Author(s):  
Kishore Kanti Majumdar ◽  
Shuchi Pahuja
Keyword(s):  
Value Chain ◽  
Oil And Gas ◽  
Environmental Issues ◽  
Oil And Gas Industry ◽  
Environmental Indicators ◽  
Annual Reports ◽  
Gas Industry ◽  
Sustainability Disclosure ◽  
Environmental Disclosures ◽  
Oil And Gas Companies

Environmental and sustainability issues have assumed significance, leading to social and legal pressures on the companies across the world to take steps to reduce and prevent adverse impact of their activities on the environment and to disclose this information to the concerned stakeholders. The present study aims at investigating the perceptions of executives from 26 listed Indian oil and gas companies on Corporate Environment Disclosures (CEDs)in the annual reports using a structured questionnaire.The questionnaire was constructed on the basis of eleven environmental indicators provided in international oil and gas industry guidelines for voluntary sustainability reporting framework. An attempt was made to determine whether the extent and type of environmental disclosures have correlation with executives’ position in the organization, their knowledge about the annual reports, their stock holdings in the company and the value stream to which the companies belonged. It was found thatthe responding executives were well aware of the environmental issues associated with activities across the value chain in the oil and gas industry. They agreed that these issues are material and must be disclosed in the annual reports, but had different perceptions on the importance of four environmental issues given in the questionnaire for disclosure in the reports. A significant statistical relationship was found between perceived corporate environmental disclosure index (PCEDI) and respondents’ positions in the company and their knowledge on the annual reports. It is suggested that a greater role to knowledgeable senior executives at key positions should be assigned to deal with sustainability disclosure affairs.

Towards Implementing Condition-Based Maintenance (CBM) Policy for Offshore Blowout Preventer (BOP) System

2019 ◽  
Author(s):  
Tobiloba Elusakin ◽  
Mahmood Shafiee ◽  
Tosin Adedipe
Keyword(s):  
Oil And Gas ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Condition Based Maintenance ◽  
Gas Industry ◽  
Training Requirements ◽  
Blowout Preventer ◽  
Integrity Management ◽  
Maintenance Personnel ◽  
Oil And Gas Companies

Abstract With the steadily growing demand for energy in the world, oil and gas companies are finding themselves facing increasing capital and operating costs. To ensure the economic viability of investments and improve the safety of operations, oil and gas companies are promoting their asset integrity management (AIM) systems. In the past, the oil and gas industry adopted reactive maintenance regimes, which involved recertification, testing and repair of faulty equipment while trying to achieve minimum downtime. As technology becomes more affordable, operators have been able to carry out improved fault diagnosis, prognosis and maintenance optimisation. As a result of this, condition-based maintenance (CBM) is being adopted more and more as the preeminent maintenance regime for oil and gas equipment. The blowout preventer (BOP) is one of the most expensive and safety critical drilling equipment in the oil and gas industry. However, there have been very few studies and best practices about how to develop a CBM policy and what specific monitoring techniques and devices will be required to implement it for the BOP system. This paper proposes a V-model based architecture for designing a CBM policy in BOP systems. As a result of the model proposed, gaps in implementation are identified and all the hardware, software and training requirements for implementing the CBM solution in BOP systems will be outlined in detail. Our proposed CBM framework will help BOP operators and maintenance personnel make cost savings through less repairs and replacements and minimal downtime.

Extreme Weather Events as Risk Factors for Oil and Gas Facilities

2022 ◽  
Vol 18 (6) ◽  
pp. 24-39
Author(s):  
P. N. Mikheev
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Spatiotemporal Variability ◽  
Extreme Weather Events ◽  
Climate Indices ◽  
Gas Industry ◽  
Climatic Indices ◽  
Weather Events ◽  
Geographical Regions ◽  
Independent States

The article discusses issues related to the influence of changes in the frequency, intensity and duration of extreme meteorological events on the objects of the oil and gas industry. Climate indices recommended by World Meteorological Organization (WMO) are used as characteristics of the extreme events. The possibilities of using climatic indices for identifying physical risks applicable to the objects of the oil and gas industry are demonstrated. The features of the spatiotemporal variability of climatic indices are considered and the geographical regions of the Commonwealth of Independent States (CIS) are identified as the most and least vulnerable to changes in the extreme characteristics of the climate. The results obtained can be used both at the level of individual enterprises and facilities of the oil and gas industry, and in the development of regulations common for the industry.

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