Many operators and service providers integrate oilfield data in the form of data hubs. Third party vendors often control these data hubs in the oil and gas industry, and data quality is often challenged. The digital gentrification of legacy wells and optimization of subsurface data management for exploration is at reach by applying smart technology ledgers, better known as blockchain.
Blockchain technology provides a platform to keep all data linked. The data is smoothly shared among different groups like exploration, drilling, completion and production. Over time, some data might be lost of which the inheriting company might not be aware. If all the data is loaded onto the blockchain, it becomes easy to track.
When we deal with subsurface analysis in offset well analysis, the data of all wells in a field (or a nearby field) readily become available on a blockchain database to assist in better decision-making. The data generated are stored in blockchain and can act as historical data in the future to better train models and assist in making informed decisions in both green and brown fields, as in subsurface analysis. For instance, a reservoir characterization project or a determination of landing zone progresses smoother when all historical data are available for review.
Another opportunity for blockchain is in the field of legacy wells. When acquisition of wells happens, the inheriting company receives data, and some of which is still in traditional paper report format. Over time, inheriting companies might not be aware of the risk of losing 25 to 40% of these legacy data. If all this data is loaded onto the blockchain, it becomes easier to track the history of these legacy wells, and they can be better optimized.
On production inventories, the immediate effect translates in the real time quantification of reported production and the inventories, which have an instantaneous effect on the price of commodities like WTI crude or Brent crude instead of waiting longer to correct estimated values.
The carbon negative narrative also offers a unique opportunity to connect private investors with operator leadership. As capital is at a premium to sustain development campaigns in the Permian basin and as more incentives in the form of tax credits become available for CO2 injection, investors need a tool to sustain the trust where they deploy their capital. By generating smart contracts in blockchain as a medium to elevate trust and involve players immediately as they report volumes of CO2 injected, they have a first view at how many tax credit incentives they become eligible to claim.
Application of Blockchain represents an opportunity for digital gentrification across upstream, midstream and downstream in the energy sector. It also acts as a tool to connect and accelerate environmental efforts. The quicker its adoption, the larger the benefits and profits become.