Understanding the Oil and Water Challenge
In the rugged terrain of North Dakota’s Bakken oil fields, the marriage between oil extraction and water management has never been easy. With an estimated 2 billion gallons of fluid biproducts produced daily across 180,000 wells in the United States, the need for a sound solution is palpable. The idea of saving both money and the environment has motivated a consortium of oil giants to explore an unlikely partner: blockchain technology.
The Consortium’s Bold Move
On September 10, the Offshore Operators Committee (OOC) Oil & Gas Blockchain Consortium announced a significant development. They awarded a contract to Data Gumbo, a startup that specializes in integrating blockchain into the oil sector, to pilot an innovative water handling technology. This project aims to streamline the management and disposal of wastewater—a process that traditionally has been fraught with inefficiencies.
Who’s on the Team?
The consortium includes heavyweights like Exxon Mobil, Chevron, and Royal Dutch Shell, along with Norway’s state-owned Equinor. Their joint ambition? To slice costs related to saltwater disposal by up to 25%. Talk about making a splash!
Why Blockchain?
So, what exactly does blockchain bring to the table? According to Data Gumbo’s CEO, Andrew Bruce, streamlining processes could lead to a jaw-dropping 30% savings in expenses throughout the industry. Not too shabby! Estimates suggest that implementing this technology could save the oil and gas water segment upwards of $3.7 billion annually. Bottom line: blockchain could be the miracle fix many have been waiting for—and it’s not even for your coffee!
The Startup Making Waves
Founded with a mission to modernize the oil and gas industry, Data Gumbo has made some splashy strides lately. Notably, Texas-based Antelope Water Management entered a partnership to utilize Data Gumbo’s platform, focused on sustainability in water services for oil extraction. Looks like they saw the writing on the wall: leveraging tech can help preserve our precious resources!
The Bigger Picture
The formation of the Oil and Gas Blockchain Consortium isn’t just a trend—it’s a pioneering effort in U.S. oil production. With the ability to improve transparency, efficiency, and accountability, this consortium is first of its kind and serves as a model for other industries. Who knew oil and blockchain would go together like peanut butter and jelly?
