Why Middle East oil and gas companies are embracing blockchain

Oilfields require the sourcing of thousands of parts from many suppliers, and blockchain smart contracts can secure and optimize the tracking and execution of transactions

6 industrial iot oil rig oil drilling cranes
Getty Images

Oil and gas players in the Middle East, which meets nearly a third of the world's crude requirements, are increasingly turning to blockchain as a way to streamline complex accounting processes and accelerate transaction speeds.

In their efforts to cut operating costs and make the most of each barrel of oil extracted, it is not uncommon for oil firms to embrace emerging technology. The industry was swept by a wave of innovation in the last few decades, including the adoption of 3D seismic testing and horizontal drilling in the 1990s and wireless technology in the early 2000s.

Over the last few years, energy companies have tapped big data analysis to mine vast troves of information in order to gain operating efficiencies, while the time taken to develop oil and gas components such as crude oil pumps, turbomachinery, and valves has significantly fallen thanks to 3D printing technology.

Smart contracts streamline logistics

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