Fiscal Measurement and Oil and Gas Production Market: Increasing Reliability Using Blockchain Technology
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 uncer...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-08-01
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| Series: | Applied Sciences |
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| Online Access: | https://www.mdpi.com/2076-3417/12/15/7874 |
| _version_ | 1797442705114005504 |
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| author | Carlos Barateiro Alexandre Faria Jose Farias Filho Karolina Maggessi Claudio Makarovsky |
| author_facet | Carlos Barateiro Alexandre Faria Jose Farias Filho Karolina Maggessi Claudio Makarovsky |
| author_sort | Carlos Barateiro |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-09T12:45:51Z |
| format | Article |
| id | doaj.art-6b791016361540048b9e8382e314fad2 |
| institution | Directory Open Access Journal |
| issn | 2076-3417 |
| language | English |
| last_indexed | 2024-03-09T12:45:51Z |
| publishDate | 2022-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Applied Sciences |
| spelling | doaj.art-6b791016361540048b9e8382e314fad22023-11-30T22:12:00ZengMDPI AGApplied Sciences2076-34172022-08-011215787410.3390/app12157874Fiscal Measurement and Oil and Gas Production Market: Increasing Reliability Using Blockchain TechnologyCarlos Barateiro0Alexandre Faria1Jose Farias Filho2Karolina Maggessi3Claudio Makarovsky4Department of Engineering, Campus Macae, Estácio de Sá University, Macaé 28895-270, BrazilDepartment of Engineering, Campus Niterói, Fluminense Federal University, Niterói 28895-270, BrazilDepartment of Engineering, Campus Niterói, Fluminense Federal University, Niterói 28895-270, BrazilDepartment of Engineering, Campus Niterói, Fluminense Federal University, Niterói 28895-270, BrazilDepartment of Engineering, Campus Niterói, Fluminense Federal University, Niterói 28895-270, BrazilThe 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.https://www.mdpi.com/2076-3417/12/15/7874fiscal measurementflow measurementblockchain technology |
| spellingShingle | Carlos Barateiro Alexandre Faria Jose Farias Filho Karolina Maggessi Claudio Makarovsky Fiscal Measurement and Oil and Gas Production Market: Increasing Reliability Using Blockchain Technology Applied Sciences fiscal measurement flow measurement blockchain technology |
| title | Fiscal Measurement and Oil and Gas Production Market: Increasing Reliability Using Blockchain Technology |
| title_full | Fiscal Measurement and Oil and Gas Production Market: Increasing Reliability Using Blockchain Technology |
| title_fullStr | Fiscal Measurement and Oil and Gas Production Market: Increasing Reliability Using Blockchain Technology |
| title_full_unstemmed | Fiscal Measurement and Oil and Gas Production Market: Increasing Reliability Using Blockchain Technology |
| title_short | Fiscal Measurement and Oil and Gas Production Market: Increasing Reliability Using Blockchain Technology |
| title_sort | fiscal measurement and oil and gas production market increasing reliability using blockchain technology |
| topic | fiscal measurement flow measurement blockchain technology |
| url | https://www.mdpi.com/2076-3417/12/15/7874 |
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