Handshake with a Chain - Blockchain as Infrastructure in Oil and Gas Drilling Automation

Downhole tools and the interconnected surface equipment will provide the options to interact with each other and transact among themselves. This will pave the way for self-diagnosis and self-healing of the downhole tools in the autonomics mode. Traditionally and presently the downhole tools do not interact with each other for example Rotary steerable system does not interact with mud motor in a motor assisted RSS bottomhole assembly. This can be avoided as the blockchain can provide a global knowledge of the whole system at any time and provide a better system when artificial intelligence is infused. It helps to learn, unlearn, relearn and reinforce the learning in an implicit manner.

Drilling Data and Asymmetry blocking and Chaining

An ongoing problem in the industry is data sharing and ownership rights besides added regulations from the local government. As a result the data and data stores are highly fragmented and transactions become very difficult. Also, it has become difficult to aggregate data from different stores and from different vendors with asymmetric information.

For this condition the blockchain technology-based framework with distributed ledger technologies will provide an option to integrate various applications at the database level. Also, it provides an agreement protocol layer between different operators, rig contractors and service companies. This further enables different access points without compromising on the either data leak or data corruption and thus, establishing the trust. This provides outsiders to participate in model development and propagate the new block developed further in the chain. Identification layer can be easily implemented in the blockchain as at any time a particular operator or service provider can restrict the access or block the block of the chain to their data without comprising the integrity of the entire chain.

Current Challenges

Although blockchain seems promising and gaining momentum beyond bitcoin, there are obvious hurdles in adapting this emerging technology in the Oil and Gas sector and more importantly in the upstream side of the business. Few challenges are:

• Standardization: Since the technology is new, there is no industry standard, which weakens the control on the implementation.

• Regulations: Since it is an emerging technology including horizontals, there are no regulations around it and this prevents further adoption and trust in the system.

• Governance: A proper regulatory environment needs to be developed for decentralized ownership and international controlling authority.

• Data Quality: Data quality and data integrity are of prime importance as we move on the automation stage and blockchain technology does not provide a robust underpinning for data quality.

• Transparency: The level of transparency in using others' data is unknown and this will create further skepticism in adoption of this technology.

• Multi-block/chain framework: Lot of companies are providing generic platform for blockchain operations. It has to be tailored as the upstream industry is different from other industries. This will create additional problems when sharing the blocks.