GETTING TO VALUE WITH BLOCKCHAIN IN OIL & GAS
WHY BLOCKCHAIN?
The energy industry has its share of challenges. Challenges that could be greatly reduced—if not eliminated—by greater efficiency and transparency.
But to get there, the industry must pivot from outdated trading platforms and less-than-secure documentation to technology that can bring the industry more completely into the digital age.
Enter blockchain. From secure distributed ledgers to smart contracts, blockchain is becoming essential in many industries.
- Securing and simplifying energy trading, billing and payment.
- Managing unwieldy, complex supply chains.
- Responding to regulation requiring massive documentation.
As oil and gas companies exploit digital for efficiency and growth—what Accenture calls Leading in the New—blockchain will be part of the essential technology mix they will use to create real value.
BLOCKCHAIN OIL & GAS BROCHURE [PDF]Read our latest article in COPAS Accounts Magazine:
ACCENTURE ABOUT DIGITAL FINANCE AND BLOCKCHAIN [PDF]The global blockchain technology market size is expected to reach $7.59 billion by 2024.1
1 Grand View Research, 2018.
HOW IS OIL & GAS USING BLOCKCHAIN ?
Picture this: Being able to easily and quickly follow a secure trail of documentation to verify contractors, employees and experts are who they say they are and carry the credentials they claim. Knowing that within a matter of seconds, any company site around the globe can access their proof of identity and completed background check, compliance with safety training and specialized permits granted.
Now imagine being able to substantially slash the high transaction costs of energy trading—eliminating costly exchange and broker fees. Or cutting the high operational costs of post-trade settlements. Blockchains allow peer-to-peer interactions that do just that.
Blockchain can help the energy industry with these issues and more because it allows trust to be technologically embedded into the very nature of transactions. With blockchain, all entities involved in a transaction use an established, distributed network of computers that records and stores every transaction or exchange of data that occurs in the network.
WHAT ISSUES DOES BLOCKCHAIN ADDRESS?
Oil and gas companies have focused most of their technology innovation on core front-line operations—from augmented reality to help train workers, to the latest drilling technology. Blockchain can do for the back-office what other emerging technologies have done for the front office.
Energy companies are already beginning to use blockchain for a variety of issues:
HYDROCARBON TRACKING
Regulated substance tracking and reportingTRADE FINANCE
Letters of credit/indemnity, handling demurrageCOMMERCIAL FLEET TRACKING
Monitor metrics and location of fleetCONNECTED CAR
Distributed fuel consumption and behavioral trackingDOWNSTREAM / RETAIL B2C PAYMENTS
Accepting Bitcoin paymentsCOMMODITY TRADING
Market Trading and Intercompany settlementsJOINT VENTURE ACCOUNTING & PROCURE TO PAY
Distributed shared ledger between entitiesINTRAGROUP BILLING
Settlement and cost recovery between businessesMEET OUR LEADERS
Richard H. Holsman
Managing Director, Accenture Resources
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Graham Richter
Managing Director, Accenture Technology
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Emmanuel Viale
Managing Director, Accenture Technology
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Pierre Mawet
Managing Director, Accenture Consulting
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Richard Meszaros
Managing Director, Accenture Digital
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