Blockchain Values Realisation Assessment in the Oil & Gas Industry

Abstract

The proliferation of Blockchain technology across various industries has garnered significant attention from
both academia and industry practitioners. While advocates highlight potential benefits such as cost
reduction, time savings, transparency, and security, many Blockchain projects have encountered significant
challenges and have yet to materialise, sparking increased interest in understanding this phenomenon. This
study seeks to explore the realisation of Blockchain values, beginning with the initial perception-forming
phase. It identifies key factors influencing value realisation and provides insights into the potential impact
of Blockchain in the oil and gas industry. This empirical study proposes an integrated framework based on
ICT adoption theories to assess the holistic realisation of value from Blockchain implementations. A case
study approach was employed to collect data from Blockchain projects within the oil and gas sector,
followed by an online survey targeting 37 oil and gas firms across various geographical regions. Findings
from the interviews and surveys indicate that most Blockchain projects continue to face various challenges
and obstacles. The anticipated values, initially based on perceptions, were often not realised in practice.
Overly optimistic perceptions, commonly seen as indicators of ICT adoption, were found to be misleading
or insufficient in achieving the expected outcomes. Additionally, this study identifies significant factors
affecting value realisation, assigning a weight to each and highlighting social factors as the most influential,
alongside legal and technological uncertainties. The study also incorporates predictions from subject matter
experts in technology and the oil and gas industry based on their experiences and involvement in Blockchain
project implementations