The Oil & Gas Blockchain Consortium (OOC) revealed a successful collaboration with GuildOne to test out the oil sector’s first blockchain application for Authorization for Expenditure (AFE) balloting. The AFE balloting proof-of-concept (PoC) would enable users to cast their votes and take part in the election process with the help of blockchain technology.
A test was conducted in which the user submitted AFEs electronically to 9 non-operating workers with the help of blockchain nodes. The nodes were then put to work by automatically calculating election percentages based on the data inputted. The balloting process took several hours until a final working interest was calculated.
What are AFEs?
AFEs are utilized in the oil and gas industry to process capital and expense projects and calculate their working interest among the participating members under a mutual agreement. Traditional AFE balloting is a very intense time-consuming process that requires large manual power and results in several interest arguments. This is where blockchain comes to an advantage, the technology would provide for the reduction of time and manual labor as well as documentation of the working results.
Rebecca Hofmann, chairman of the OOC Oil & Gas Blockchain Consortium expressed her approval applauding the building of the PoC in a time period of fewer than 4 months. The success of the PoC presents us with a clear example of how the oil and gas industry could benefit from its collaboration.
Not the First Time for Blockchain-Based Balloting
This may be the first industry application of blockchain for balloting, but it is not the first blockchain-based election to be held. Many US jurisdictions like Jackson and Umatilla have used a blockchain-powered mobile application, Voatz in their recently concluded special elections in November. This just goes to show that the world is not only realizing the potential of blockchain but is also putting it to good use.