Blockchain for Secure Energy Trading and Grid Management in Offshore Oil & Gas Facilities (Published)
The offshore oil and gas sector grapples with persistent energy management challenges, including inefficient electricity distribution, cybersecurity vulnerabilities, and opaque energy trading systems. Centralized approaches exacerbate these issues by introducing single points of failure, data manipulation risks, and operational inefficiencies. This research investigates how blockchain technology can revolutionize energy trading and grid management in offshore facilities through a decentralized, secure, and transparent framework. This study outlines a blockchain-based solution focusing on four key areas. First, smart contracts are employed to automate electricity transactions between offshore platforms and onshore grids. These self-executing agreements streamline processes by reducing administrative costs, accelerating settlements, and eliminating intermediaries, while supporting dynamic pricing models responsive to real-time supply and demand. Second, blockchain’s immutable ledger is leveraged to create tamper-proof records of power generation and consumption. This ensures transparency and auditability, critical for regulatory compliance and operational trust. The system integrates with sensors and IoT devices, validated through consensus mechanisms suitable for offshore conditions, such as intermittent connectivity. Third, we introduce a Decentralized Energy Ledger (DEL), a blockchain-based system that serves as a digital twin of energy flows across offshore supply chains. The DEL enhances visibility, improves forecasting accuracy, and optimizes energy use, yielding efficiency gains of 15–22% in case studies. Fourth, cybersecurity is fortified using blockchain’s cryptographic tools, such as public-key encryption, to secure communication channels and protect against threats. Testing reveals a 65% reduction in security incidents compared to traditional systems. The proposed framework integrates a permissioned blockchain, smart contracts, cryptographic security, and a tailored ledger system, optimized for marine environments. Results suggest operational cost reductions of 18–25%, energy efficiency improvements of 12–17%, and enhanced grid resilience. Challenges, including hardware durability, connectivity, and legacy system integration, are addressed with a phased implementation plan. This research advances industrial blockchain applications by tailoring solutions to offshore energy needs, offering a scalable model for secure, efficient, and sustainable operations. Future work should explore custom consensus algorithms and regulatory frameworks to support broader adoption.
Keywords: Blockchain technology, cryptographic security, decentralized energy ledger, industrial control systems, offshore energy management, smart contracts