Technology and the growing gas industry
We live in a digitized world, it is truly fast paced and we are all forced to learn, relearn and unlearn every day. It is no longer enough to be the old man on the phone calling the grandchildren to help out with the “Wozup”, growth has no stopping point, and time has come to bring to bear our knowledge and experience and see how it can fit and contribute to new world
Many people view technology especially generative AI from a position that it can generate responses and solutions at a heartbeat. Well, that is not entirely farfetched from what ChatGPT does, and truly, there is a need for integrating technology into our processes especially in the gas sector which is at a crossroads, facing challenges which I believe technology can help overcome, though it will probably raise its own issues as the gas industry like all industries have its own peculiar challenges which have largely been described as multifaceted. With the growth and influence of technology, I reckon that the blockchain technology amongst others can contribute significantly to the gas industry in Nigeria. Moreover, it is important to note that blockchain is not just about cryptocurrencies, it is a technology that can transform many aspects of society and it requires careful study as to its potentials and its challenges when inculcated in areas such as the gas industry.
What is Blockchain
A blockchain can be described as a distributed and shared ledger that enables unchangeable transaction records, asset tracking, and common trust between several stakeholders and parties. It combines cryptography, data management, networking, and incentive mechanisms to facilitate the confirmation, carrying out, and documentation of transactions between parties. Blockchain based short contacts can automate compliance procedures and minimize errors
A distributed ledger is a way to store transactions that is distributed over numerous participating nodes and is limited to additions only. A linked collection of blocks is represented by a blockchain. An ordered set of transactions is stored in each block. Every transaction is documented as a block of data that shows the movement of an intangible (intellectual property) or tangible (product) asset. The necessary details (sides, content, amount, time, place, condition, and others) regarding the associated transaction can be stored in the data block. Every new brick is joined to the ones that came before and behind it to form a chain of blocks.
Any efforts to add new blocks between the ones that already exist or change previously existing blocks can be identified and stopped since the records are sequenced and have a precise time. Once a transaction is entered into the shared ledger, it cannot be altered or tampered with. If a record has a mistake, it must be corrected with a new transaction, in which case both entries will be accessible.
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Improved data efficiency:
One of the major challenges we encounter as a nation in Nigeria is data. We do not have concise information of how much we are as a people, we cannot say for certain how much bcm of gas we consume, and we do not know how many vehicles run on CNG or LPG amongst other challenges. Harnessing the power of data analytics can streamline operations, enhance efficiency, and optimize resource utilization. Analytics can provide valuable insights into production processes, predictive maintenance, and demand forecasting, contributing to better decision-making within the sector and more specific response on areas of needs instead of overhauling systems to identify problems.
Data storage can also be challenging, consuming the large volume of data that is often produced, the duplication of information during application and other bureaucratic processes. Blockchain technology with its distributed ledger system can help in this area by ensuring transparency, verifying information instantly. This will enhance security of the data provided, provide timely and swift response, and ensure that only verified information is provided. The blockchain technology will also build trust in the system and ensure that transactions are open and verifiable by proper authorities.
The ability of the blockchain network to provide a single logical copy of all transaction records should truly be considered as it removes the process of reconciliation and settlement of records which can be time consuming and prone to errors in a highly sensitive sector.
Remote monitoring and security:
One of the most challenging aspects of gas is monitoring. The product requires constant monitoring, the infrastructure also needs eternal vigilance. The human and environmental challenge faced by both products and infrastructure requires sensors and real-time monitoring of equipment, pipelines, and facilities. Because sensors are able to identify abnormalities, leaks can be stopped early on, downtime is decreased, and overall safety is improved. The Internet of Things reduces significantly the challenges posed from insufficient monitoring in the sector. Trackers have also been utilized extensively in tracking products from their points of origin to their destination to ensure that they were not tampered with at any point.
Blockchain technology can bring transparency and security to the gas supply chain. Smart contracts and decentralized ledgers can streamline transactions, reduce fraud, and enhance accountability, fostering trust among stakeholders and attracting more investment to the sector.
Renewable energy and smart systems
The need to integrate renewable energy sources with smart systems follows on the path to creating sustainable and reliable energy ecosystem. This perspective ensures a more balanced and resilient energy supply, anticipating the developmental ambitions of the future, mitigating the environmental impact associated with traditional energy sources and laying foundation that can be built upon by others as to the framework to be followed.
Digital skill development:
The evolution of technology has undoubtedly brought with it a lot of disruptions. The reality that certain skills in the workforce will be disrupted is inevitable. It presents us with the rare opportunity of upskilling our labor force. Investing in digital skill development is crucial for the successful implementation of new technologies, and training programs can empower professionals to navigate the digital landscape, ensuring the sustainable growth of the gas sector.
Such technology innovations and inculcation also enable seamless collaboration among industry players, government bodies, and international partners. Sharing best practices, technological advancements, and market insights can foster a collaborative environment, accelerating the adoption of innovative solutions and driving the sector forward.
Conclusion:
The successful implementation of technology in the gas sector will require collaboration between government, industry stakeholders, and technology providers. Measures must be prioritized to protect critical infrastructure from cyber threats.
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Technology and particularly adapting blockchain technology present opportunities to address the challenges faced by the gas sector in Nigeria. Embracing digital transformation not only enhances operational efficiency but also positions Nigeria as a leader in sustainable and technologically advanced energy practices.
In conclusion, blockchain technology can bring significant benefits to the oil and gas sector in Nigeria by building trust and transparency, improving operational efficiency, and reducing costs. However, its successful implementation requires a supportive regulatory environment and a population educated in digital skills.
Dapo Akinosun is a Senior Advocate of Nigeria (SAN), Arbitrator and co-author along with Dr David Ige of the only Nigeria book on gas- “Understanding Natural Gas: A Nigerian Perspective”.
