Tremendous growth is predicted for the American Oil and Gas Industry in the Imminent Years. Although the predictions indicate an optimistic future, the current oil and gas industry has to face several hurdles. First, there has always been an imbalance between demand and supply in the sector leading to financial instability. To counter financial difficulties, enterprises had to resort to cutting costs, reducing the workforce, and so on.
The days of the pandemic have just worsened the scenario. The pandemic has aggravated this existing imbalance. Besides, the industry has to face stiff competition from the renewable energy industry.
Data reveal that by 2027, the renewable energy sector will be worth more than $1.1 trillion. The most viable way to deal with this scenario is to embrace technologies that help you remain competitive and disruptive.
The industry is already partially or majorly reliant on potential technologies such as artificial intelligence, data science, industrial IoT, automation, or block chain.
In the process, several technologies would play an active role. The industry is reaping the benefits of technology incorporation. Block chain is making its impact felt in various aspects of the oil and gas industry.
Block chain has already outgrown its naive cryptocurrency image of distributed consensus ledgers and is now suitable to be called intelligent contracts facilitators.
Let’s have a detailed look at how block chain becomes significant for the sector.
Securing digital transactions is made more accessible with block chain technology. As a result, the trades are more secure and transparent.
IBM has recently introduced an SAP-based shareable ledger system that helps enhance visibility and capability in day-to-day transactions for the industry.
Block chain technology can also make the process of recruitment easier. The industry has a significant dependency on storage and authentication recruitment certificates.
The current strategies for manufacturing physical refined product trades involve several manual processes. Consequently, there is a need to enter information into different systems with several layers for data reconciliation.
The distributed ledger capabilities associated with the block chain can reduce the time involved in reconciling disparities in volume and price differences as the same data is available for all parties involved simultaneously.