A consortium of oil companies including Exxon Mobil, Chevron and Royal Dutch Shell looks to blockchain to manage water used in oil extraction in North Dakota’s Bakken oil fields.
Oil and water
One member of the consortium, Norway’s state-owned Equinor, expects to save up to 25% on costs related to disposal of saltwater.
The EPA estimates that over 2 billion gallons of fluid biproducts of petroleum product are injected in the United States every day, through an estimated 180,000 active wells.
In July, CEO Andrew Bruce told Bloomberg that streamlining these processes could save the industry 30% of expenses. The more recent Reuters report paraphrases Bruce as saying that the technology could save $3.7 billion annually for the oil and gas water business.
The Oil and Gas Blockchain Consortium formed at the time, with the announced aim of exploring proofs of concept for blockchain technology within the industry. The consortium advertised itself as the first of its kind in U.S. oil production.
Founding members included U.S.-based Exxon Mobil, Chevron, ConocoPhillips, Pioneer Natural Resources, Hess, Norwegian Equinor, and Spanish Repsol. Since then, others including Royal Dutch Shell have joined their ranks.