In this series, we’re breaking down how blockchain can impact the complex segments of the oil and gas industry: upstream, midstream, and downstream.
Part 1: Upstream
As we mentioned in the first part of this series, there are three segments of the oil and gas industry: upstream, midstream, and downstream. Linking the upstream segment (exploration and production) and downstream segment (refinement), midstream oil and gas includes the transportation and storage of natural gas, crude oil, and refined products.
Due to the potential of environmental harm from improper storage or transportation, midstream oil and gas is one of the most regulated industries. And because oil and gas products have to pass through national, state, local, and municipal borders, they must successfully attain a wide variety of approvals. While midstream oil and gas businesses struggle to juggle regulations with their many partners, blockchain has the capability to mitigate these problems.