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According to a press release on Feb. 26, seven American oil and gas industry giants have come together to form the very first oil and gas industry-specific blockchain consortium in the United States. The consortium is comprised of American industry giants ExxonMobil and Chevron and other five companies – ConocoPhillips, Equinor, Hess, Pioneer Natural Resources and Repsol.
The oil and gas industry blockchain consortium will be residing under the Offshore Operators Committee (OOC) that is looking forward to implementing the proof of conduct consensus in order to explore the potential of blockchain in the industry.
There aren’t many industries that were left untouched by blockchain technology, and the oil and gas industry is no exception with several endeavors in the field. However, blockchain penetration in this particular industry was significantly slower compared to other industries such as banking and finance. Though, forming oil and gas industry blockchain consortium is a huge step towards utilizing blockchain for the industry, which could also contribute to global blockchain adoption.
Rebecca Hofmann, chairman of the board of directors, stated:
“Creating the OOC Oil & Gas Blockchain Consortium is a significant step toward establishing key blockchain standards, frameworks, and capabilities for the oil and gas industry.”
The consortium is aiming to evaluate blockchain by establishing proof of concept and airing various pilot programs to explore the various ways of utilizing blockchain technology for the oil and gas industry. It will also explore the potential benefits the blockchain can bring in terms of faster transactions, reduced costs, improves safety, and fewer disputes.
The main goal of the consortium is to fuel blockchain adoption through the industry and advancing a progressive industry blockchain technology by implementing the required governance structures, smart contracts, and consensus mechanism.
The board of directors, that includes the representative from all seven founding companies, will look after the various aspects of the consortium such as consortium funding, monitoring and maintaining the operating processes, and acquiring the project approval.
“The consortium is eager to begin building a foundational network of business partners to collaboratively advance use cases within exploration, finance, IT, land, operations, and supply chain, while also leveraging learnings amongst our members,” said JD Franke, vice-chairman of the board of directors.