According to data collected by Data Gumbo, a startup dealing with blockchain technology, oil operators across the globe stand to save a minimum of 30 per cent of their costs by incorporating the use of blockchain technology as a part of their infrastructure. We have long known the business benefits of blockchain, and now it seems more and more industries can benefit from it.
The chief executive officer or CEO of the US-based blockchain startup in question, Andrew Bruce, has shed some light on how blockchain smart contracts may be used for automating contract execution within the oil industry to boost efficiency and cut costs. This will help seamlessly replace traditional paper contracts, thereby saving the companies around 30% on their costs. These comments were made on Bloomberg Commodities Edge on 19th July. As per data collected by Data Gumbo, the oil and gas market together made up for $2.6 trillion by 2017.
In May this year, Data Gumbo had raised funding worth a whopping 6 million dollars from several big businesses in the world’s energy space. This includes Equinor Technology Venture, which is basically a venture subsidiary of Equinor. It also got funding from Saudi Aramco’s venture arm Saudi Aramco Energy Ventures. It managed to secure a total funding of about 9.3 million dollars. Naturally, the benefactors of the company expect it to work towards advancing the efficiency of supply chain within the oil and gas industry. It is expected to do so by reducing disputes, facilitating automated transactions, and bringing down reconciliation times in the supply chain.
Blockchain is a technology with many uses and diverse areas of applicability. Now, with this finding by Data Gumbo, more opportunities opened up.