How Technology Can Help Midstream Transportation Companies?


Technology and innovation are changing our world and the way we live. These shifts are affecting every single industry, and the energy industry is one of the most influenced branches of the global economy. Upstream, midstream, and downstream sectors all require digital transformation for efficient operations and cost reduction. For midstream transportation, digitization plays an even more crucial role, as a large chunk of costs are spent on oil and gas transportation.

Although many oil and gas companies take efforts to digitize pipelines, there is still a lot of work to really digitize midstream transport. Blockchain, data technology, tracking, and other innovations could drastically reduce transportation costs, and increase performance efficiency. Making the process of midstream transportation clear and transparent will help to better analyze and store data, define gaps, and drive results for energy companies. In particular, blockchain is believed to be the most promising and capable innovation to optimize and automate the midstream sector.

How blockchain and technology can help midstream transportation companies?

Infrastructure streamline

One particular thing about oil and gas midstream business is its incredibly complex infrastructure. Numerous spots in remote locations have different characteristics and specifications, which makes it complicated to manage. Advanced use of blockchain lets companies store and sort all the necessary infrastructure data in one place, which makes the process of midstream transportation management simpler and way more efficient.

Transportation tracking

Another crucial feature that could eliminate mistakes and costs in the oil and gas business is proper transportation tracking. Transparency of the energy supply chain lets companies see potential risks, discrepancies, inefficient operations, and performance gaps. This way, midstream companies can better understand how transportation looks like in real-time, and define better routes or methods for moving crude oil or natural liquid gas.

Equipment condition tracking

Tracking can also include monitoring of the pipeline’s climate. In terms of risk management, equipment condition control plays a critical role as a safety measurement. Oil and gas are not always transported through pipelines alone. Trucks, barges, rail, and the combination of modes require even more attention and monitoring.

Ultimately, blockchain and other innovations are much needed in the midstream sector, as well as in the oil and gas industry in general.

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