Fiscal Measurement and Oil and Gas Production Market: Increasing Reliability Using Blockchain Technology

Abstract

The market of oil and gas has many particularities, once it is a natural resource of great value. Due to the fact the resource is owned by nations, it is highly regulated. The volumes traded are high; for this reason, their calculation needs to be performed very carefully, meeting not only the uncertainties and metrological control, but also particularly the tracking of the activities. The technical regulations of measurement adopted by the countries carefully follows many guidelines. The reason is that the established volumes directly affect the calculation of royalties and profit sharing in concession agreements or even a simple ownership shift of the products. Therefore, it is an application with a lot of responsibility, involving a large amount of equipment, software, and execution processes. Therefore, the transfer of data among different entities requires total transparency and security. Blockchain technology, which has been initially developed for the financial market, presents itself as an alternative to ensure reliability, from the sensors in the field to the effective generation of the Monthly Report on the petroleum and natural gas production unit, which is the basic document for determining the remuneration of the owners of the product. This paper presents a technical solution for creating the blockchain validation blocks by the MAC (Media Access Control Address) addressing, which in turn comes from the communication boards of the flow computers and from the Supervisory Stations. There are limitations to extending this solution to the level of field sensors due to the current links of communication, but also because of the way that historical, events and alarm databases of the flow computers are generated. Once these devices exhibit an elevated degree of safety in their operation, the solution herein presented adds a high level of reliability in the fiscal measurement and/or custody transfer.

Identity Management and Authentication of a UAV Swarm Based on a Blockchain

“…After several years of development, it plays an essential role in many fields, for example, finance, trade, the Internet of Things, medical care, renewable energy, smart cities, social media, copyright protection, etc. [28][29][30][31][32][33][34].…”