Oil Markets Could Save 30% With Blockchain, Data Gumbo CEO Says

Global oil operators can save at least 30% by using blockchain in their infrastructure, according to data by blockchain startup Data Gumbo.

Andrew Bruce, CEO of American blockchain startup Data Gumbo, discussed blockchain-powered automated contract execution in the oil industry on Bloomberg Commodities Edge on July 19.

When asked how much oil industry players can save by implementing blockchain applications such as blockchain-based contract execution instead of traditional paper contracts, Bruce argued that such solutions could save at least 30%, referring to internal studies by the company. According to Data Gumbo’s data, oil and gas market accounted for $2.6 trillion by 2017.

In May 2019, Data Gumbo raised $6 million from major global energy companies, including Equinor’s venture subsidiary Equinor Technology Venture and Saudi Aramco’s venture arm Saudi Aramco Energy Ventures. With a total funding of up to $9.3 million, investors expect the company to improve oil and gas supply chains by eliminating disputes and delivering automated transactions, as well as reducing reconciliation times in the supply chain.

On July 18, co-founder of American tech giant Apple Steve Wozniak was reported to invest in Efforce, a new blockchain-enabled energy saving firm in Malta.

Previously, Cointelegraph reported that Philip Morris estimated its potential blockchain-powered savings to account for $20 million. Philip Morris’ global head of tech innovation said that manual work and the associated counterfeit risks end up costing the industry and governments $100 million a year.