This is the second year that the Colombian company has allocated funds for distributed ledger technology. They will allocate up to USD 80 million for technology and innovation.
Ecopetrol will invest USD 80 million in technology and innovation in 2021, which includes funds for so-called distributed ledger technology (DLT) or blockchain. Colombia’s state oil company made public its business plan for next year, which covers a total of USD 4 billion.
The focus of the investment will be on digital transformation, improved recovery, and energy transition, according to Ecopetrol. This is the second year that the corporation has injected capital into shared records.
“In terms of digital transformation, we will allocate about USD 50 million for the capture of benefits associated with artificial intelligence technologies, blockchain, and bots, among others,” the company said in a statement.
They will allocate the other USD 30 million for the Colombian Petroleum Institute (ICP), which will make investments in energy transition projects, advanced materials, and an increase in the recovery factor.
According to Ernesto Gutiérrez de Piñeres, Ecopetrol’s digital vice president, the company did not offer details on the use of shared records. However, they have said that they use blockchain technology to optimize different phases within the oil and gas supply chain.
It is not yet clear whether the company is using a public network like Ethereum or a private solution. Ecopetrol’s corporate communications management has not made any comment in this regard.
Transformation in the Industry through Blockchain Technology
The available information allows deducing that Ecopetrol seeks to apply technologies of the so-called fourth industrial revolution. In other words, the company would aim to involve new production techniques with intelligent systems in its innovation plan.
In November of last year, Ecopetrol had included blockchain technology in its digital transformation process. At that time, they reported that the company’s technology development plan required an investment of USD 120 million.
Other oil companies, such as BP, Shell, and Statoil, have also made investments to adopt blockchain technology in their production processes. It is important to remember that supply chain tracking is just one of the many use cases for blockchain technology. Other uses for this technology include document validation, digital identity, and data recording.
Distributed ledger technology is original to Bitcoin and is related to cryptocurrencies by nature. However, it also offers other types of solutions that seek transparency, traceability and, in some cases, decentralization.
This technology allows two or more people (or entities) to conduct data or securities transactions without the intervention of trusted third parties. Regarding a public network, the operations are recorded in a shared record that the participants or anyone can consult.
Blockchain technology has proven to be effective in developing tools that help increase the level of security of both personal and institutional data. The fact that Ecopetrol and other oil companies want to invest in DLT is a sign of the growing confidence in the technology behind Bitcoin.
By Alexander Salazar
