Seven oil and natural gas producing companies have established a blockchain consortium to explore and adopt the new technology's potential for the energy sector.
American oil and gas majors ExxonMobil, Chevron, ConocoPhillips, Hess, Pioneer Natural Resources, Norway's Equinor and Spain's Repsol have joined forces for the Offshore Operators Committee (OOC) Oil & Gas Blockchain Consortium, according to a statement on Tuesday.
The consortium aims to learn and lead emerging blockchain technology for the oil and gas industry, in addition to exploring the benefits and industry application of blockchain including faster transactions, improved safety and lower costs, it said.
The blockchain technology, which allows digital assets to be transacted in real-time, has become widely used with cryptocurrencies. It allows for the efficient recording and permanent tracking of transactions between two parties in a verifiable way.
"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," Rebecca Hofmann, chairman of the board of directors, said in the statement.
A board of directors will oversee funding for the consortium, and ensure operating procedures are maintained, the statement said.
By Ovunc Kutlu