Major oil & gas players have been announcing emissions cutting programs — BP publicly pledged to eliminate or offset all emissions by 2050 and five other large producers announced drastically new emissions targets — yet there is little to no information about how these companies intend to achieve their stated goals.
Oil and gas companies are looking to implement technology to shore up core business processes and accommodate a multitude of consequences currently facing that the industry.
In the first six months of 2020, 3,500 companies filed for bankruptcy. Experts expect insolvency numbers to surpass $100 million, rivaling the results of the 2008 economic crisis. There’s nothing to doubt: COVID-19 is deeply impacting companies. In fact, 58% of business leaders say that recent circumstances have completely changed their organization’s strategic priorities.
Whether hot and dusty, freezing cold or perched over saltwater, a constant geolocationally-agnostic task at hand is that stack of paper tickets and invoices that proliferates across the desk of the ‘company man.’ With years spent in college and various training courses to responsibly manage the safe construction of productive wells, paperwork can feel a Sisyphean side chore — with two to three hours a day spent stamping tickets. In 2020, this waste of time — not to mention resources — is beyond undesirable and no longer necessary.
With anything blockchain, there’s a hedging for adoption and the oil & gas industry is no different. Companies often skirt the first position and instead search for safety in numbers when it comes to taking up innovative technologies. Like a school of fish in need of camouflage, straying ahead to lead the charge comes with risk and, worst case, failure. But it can also yield great reward.
The American oil market crashed below $0 a barrel this week; an unprecedented historical low.The “stage set for a ‘most uncertain’ future,” was already indicated by early earnings . With a precipitous 60% price drop since January , flatlining this week and even dipping into negatives , oil & gas companies across the board are cutting budgets , hunkering down and halting operations.
More companies today are implementing blockchain technology to apply smart contracts across commodities transport to capture efficiencies and cost savings. By automating payments between the network of intermediaries necessary to move a commodity end-to-end from production, participants can increase access to free cash flow, a must in today’s market climate.