Blockchain technology in the oil and gas industry!

Oil and gas companies can rejoice. Blockchain technology is officially adopted in a major industry, the oil and gas industry. The oil and gas industry is generally slow, however, after falling prices since 2014 because of the abundance of oil, hydrocarbon companies have adapted quickly to maintain their business.

Blockchain technology officially enters the oil and gas industry

• The Ondiflo project is shared between ConseSys and Amalto

ConsenSys for the development of the Ethereum -based software and Amalto, a payment automation company, is developing an ethylene-based Blockchain project under the name Ondiflo. This joint venture will provide digital processing solutions for applications. The digitization of processes will improve both production and transport, resulting in benefits such as improved scheduling and transmission, accurate measurement of fluid volume, billing accuracy, significant drop in revenue leakage and lack of coding errors.

From paper to digitization

Once set up, Ondiflo will be headquartered in Houston, Texas, the heart of the oil and gas industry in the United States. The company will use the Ethereum Smart Contracts to develop a ticket-based automated system to streamline and improve payments for oil services in the upstream, midstream and downstream industries. These operations are still under way through the processing of physical papers. In addition, verifying the data through proof of work will be another benefit. Transactions will only be settled within hours, compared to days. Furthermore, it can reduce the number of possible errors. Once the technology is adopted, the companies will see an overall increase in efficiency as well as increased profits.

Joe Lubin, the founder of ConsenSys, summarizes the strength of the Blockchain :

"As one of our first projects in the oil and gas supply chain industry, Ondiflo will offer a solution where all operators and service companies can benefit from digitization, automation, smooth data exchange and record stability, which has become possible for the benefit of the platform. Ondiflo will offer efficiency in operations that are still to date, often done manually or in paper, such as field tickets or bill of lading, which are now ready to operate according to the technology of Blockchain ."

Facilitating Accounts Payable

In the oil and gas industry, companies must deal with the "Days Sales Outstading" (DSO) period, which usually takes about 90 days from the date of the request to the date of payment. The company sells its customers loans and maintains a high proportion of accounts receivable debt In dealing with DSO rates, it is recommended that the latter be medium, because the rate is very low, indicating that the company is strict Too much credit can be alienated by customers.

What is the next step for Ondiflo?

A meeting of interested parties is scheduled for February 15, 2018. Following the meeting, a plan will be developed to follow up and launch the Ondiflo joint venture. Further developments in this situation will emerge after this date.