"To solve the climate crisis, confidence in emissions data is crucial." Photo via Getty Images

Sustainability has been top of mind for all industries as we witness movements towards reducing carbon emissions. For instance, The Securities and Exchange Commission (SEC) proposed a new rule that requires companies to disclose certain climate-related activities in their reporting on a federal level. Now, industries and cities are scrambling to ensure they have strategies in the right place.

While the data behind sustainability poses challenges across industries, it is particularly evident in oil and gas, as their role in energy transition is of the utmost importance, especially in Texas. We saw this at the COP26 summit in Glasgow last November, for example, in the effort to reduce carbon emissions on both a national and international scale and keep global warming within 1.5 degrees Celsius.

The event also made it clear achieving this temperature change to meet carbon neutrality by 2030 won’t be possible if organizations rely on current methods and siloed data. In short, there is a data problem associated with recent climate goals. So, what does that mean for Houston’s oil and gas industry?

Climate is a critical conversation – and tech can help

Houston has long been considered the oil and gas capital of the world, and it is now the epicenter of energy transition. You can see this commitment by the industry in the nature of the conferences as well as the investment in innovation centers.

In terms of the companies themselves, over the past two years each of the major oil and gas players have organized and grown their low carbon business units. These units are focused on bringing new ideas to the energy ecosystem. The best part is they are not working alone but joining forces to find solutions. One of the highest profile examples is ExxonMobil’s Carbon Capture and Underground Storage project (CCUS) which directly supports the Paris Agreement.

Blockchain technology is needed to improve transparency and traceability in the energy sector and backing blockchain into day-to-day business is key to identifying patterns and making decisions from the data.

The recent Blockchain for Oil and Gas conference, for instance, focused on how blockchain can help curate emissions across the ecosystem. This year has also seen several additional symposiums and meetings – such as the Ion and Greentown Houston – that focus on helping companies understand their carbon footprint.

How do we prove the data?

The importance of harmonizing data will become even more important as the SEC looks to bring structure to sustainability reporting. As a decentralized, immutable ledger where data can be inputted and shared at every point of action, blockchain works by storing information in interconnected blocks and providing a value-add for insuring carbon offsets. To access the data inside a block, users first need to communicate with it. This creates a chain of information that cannot be hacked and can be transmitted between all relevant parties throughout the supply chain. Key players can enter, view, and analyze the same data points securely and with assurance of the data’s accuracy.

Data needs to move with products throughout the supply chain to create an overall number for carbon emissions. Blockchain’s decentralization offers value to organizations and their respective industries so that higher quantities of reliable data can be shared between all parties to shine a light on the areas they need to work on, such as manufacturing operations and the offsets of buildings. Baking blockchain into day-to-day business practice is key in identifying patterns over time and making data-backed decisions.

Oil and gas are key players

Cutting emissions is not a new practice of the oil and gas industry. In fact, they’ve been cutting emissions estimates by as much as 50 percent to avoid over-reporting.

The traditional process of reporting data has also been time-consuming and prone to human error. Manually gathering data across multiple sources of information delivers no real way to trace this information across supply chains and back to the source. And human errors, even if they are accidental, pose a risk to hefty fines from regulatory agencies.

It’s a now-or-never situation. The industry will need to pivot their approaches to data gathering, sharing, and reporting to commit to emissions reduction. This need will surely accelerate the use of technologies, like blockchain, to be a part of the energy transition. While the climate challenges we face are alarming, they provide the basis we need for technological innovation and the ability to accurately report emissions to stay in compliance.

The Energy Capital of the World, for good

To solve the climate crisis, confidence in emissions data is crucial. Blockchain provides that as well as transparency and reliability, all while maintaining the highest levels of security. The technology provides assurance that the data from other smart technologies, like connected sensors and the Internet of Things (IoT), is trustworthy and accurate.

The need for good data, new technology, and corporate commitment are all key to Houston keeping its title as the energy capital of the world – based on traditional fossil fuels as well as transitioning to clean energy.

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John Chappell is the director of energy business development at BlockApps.

Siloed data, lack of consistency, and confusing regulations are all challenges blockchain can address. Photo via Getty Images

Houston expert: Blockchain is the key to unlocking transparency in the energy industry

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Houston has earned its title as the Energy Transition Capital of the world, and now it has an opportunity to be a global leader of technology innovation when it comes to carbon emissions reporting. The oil and gas industry has set ambitious goals to reduce its carbon footprint, but the need for trustworthy emissions data to demonstrate progress is growing more apparent — and blockchain may hold the keys to enhanced transparency.

Despite oil and gas companies' eagerness to lower carbon dioxide emissions, current means of recording emissions cannot keep pace with goals for the future. Right now, the methods of tracking carbon emissions are inefficient, hugely expensive, and inaccurate. There is a critical need for oil and gas companies to understand and report their emission data, but the complexity of this endeavor presents a huge challenge, driven by several important factors.

Firstly, the supply chain is congested with many different data sources. This puts tracking initiatives into many different silos, making it a challenge for businesses to effectively organize their data. Secondly, the means of calculating, modeling, and measuring carbon emissions varies across the industry. This lack of consistency leaves companies struggling to standardize their outputs, complicating the record-keeping process. Finally, the regional patchwork of regulations and compliance standards is confusing and hard to manage, resulting in potential fines and the headaches associated with being found noncompliant.

Better tracking through blockchain

When it comes to tracking carbon emissions, the potential for blockchain is unmatched. Blockchain is an immutable ledger, that allows multiple parties to securely and transparently share data in near real time across the supply chain. Blockchain solutions could be there at every step of operations, helping businesses report their true emissions numbers in an accurate, secure way.

Oil and gas companies are ready to make these changes. Up to now, they've been using outdated practices, including manually entering data into spreadsheets. With operations spread across the world, there is simply no way to ensure that numbers have been accurately recorded at each and every point of action if everything is done manually. Any errors, even if they're accidental, are subject to pricey fines from regulatory agencies. This forces businesses into the costly position of overestimating their carbon emissions. Instead of risking fines, energy companies choose to deflate their carbon accomplishments, missing out on valuable remediation credits in the process. In addition, executives are forced to make decisions based on this distorted data which leaves projects with great potential to cut carbon emissions either underfunded or abandoned entirely.

In conversations with the super majors, they've reported that they have cut emission reduction estimates by as much as 50% to avoid over-reporting. This is anecdotal, but demonstrates a real problem that results in slower rates to meet targets, missed opportunities, and unnecessary expenditures.

There are so many opportunities to integrate blockchain into the energy industry but tackling the carbon output data crisis should come first. Emissions data is becoming more and more important, and oil and gas companies need effective ways to track their progress to drive success. It's essential to start at the bottom and manage this dilemma at the source. Using blockchain solutions would streamline this process, making data collection more reliable and efficient than ever before.

Houston is on the right track to lead the world in energy innovation — local businesses have made impressive, action-driven efforts to make sure that our community can rightfully be called the Energy Capital of the World. The city is in a great position to drive net-zero carbon initiatives worldwide, especially as sustainability becomes more and more important to our bottom lines. Still, to maintain this command, we need to continue to look forward. Making sure we have the best data is critical as the energy world transitions into the future. If Houston wants to continue to be a leader in energy innovation, we need to look at blockchain solutions to tackle the data problem head on.

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John Chappell is the director of energy business development at BlockApps.

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Houston space companies win NASA funding to build Mars exploration robots

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Two Houston-area spacetech companies have landed a portion of a $17 million award from NASA to develop robots for exploring the surface of Mars, the agency announced this month.

Houston-based Inuitive Machines and Webster, Texas-based MEI Technologies, which does business as Aegis Aerospace, were among the seven companies selected to receive the funding from NASA's Science Transport and Robotic Innovation for Deployment and Exploration (STRIDE) initiative.

According to the release from NASA, the companies are tasked with creating "innovative mobility systems" that would allow future Mars missions to access more challenging terrain and difficult-to-reach regions of the planet, and to travel farther distances. NASA estimated that the work will begin this fall.

NASA solicited proposals for participants in the STRIDE initiative in January. The seven named companies are the first selected to participate in the program.

The additional five companies to receive STRIDE funding include:

"STRIDE demonstrates NASA’s commitment to strong public-private partnerships, allowing the agency to explore new approaches for Mars surface exploration while identifying key capability gaps and development needs for commercial systems that could operate and traverse realistic Martian environments," NASA shared in the announcement.

Last month, Intuitive Machines was awarded $148.3 million to deliver its Nova-C lander to the moon. The funding was part of $600 million the space agency awarded to three companies as part of its Moon Base Program and was Intuitive Machines' sixth task order under NASA's Commercial Lunar Payload Services (CLPS) program. Astrobotic was also one of the companies to land funding for the Moon Base program, as well as Austin-based Firefly Aerospace.

Around the same time, Firefly Aerospace was awarded a $13 million subcontract from NASA’s Jet Propulsion Laboratory to develop technology for NASA’s SkyFall mission to Mars. The mission aims to deploy three Mars helicopters to "perform science and demonstrate airborne subsurface mapping and resource prospecting on the planet." Read more here.

University of Houston debuts UH Health, expanding collaborative health care and research efforts

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The University of Houston has announced its cross-disciplinary academic venture, UH Health.

It will align UH’s efforts in education, research and clinical partnerships to create new opportunities to advance research and innovation, community impact, and education, according to a news release.

“From opening the state’s first college of optometry to developing groundbreaking vaccines, improving the health of all Texans has been a UH priority for decades,” UH President Renu Khator said in the release. “Now, with the launch of UH Health, we are bringing together the full strength of our health enterprise to expand our reach, advance research and transform the future of health for our communities.”

UH is adopting a fully collaborative model, with health professionals from various concentrations to help better understand overall patient care, which includes factors like clinical, behavioral and social factors that can influence health outcomes.

UH Health will also have partnerships with HCA Healthcare, Memorial Hermann Hospital, Baylor College of Medicine, MD Anderson Cancer Center and other Texas Medical Center facilities. In addition, UH Health will work with DHR Health in the Rio Grande Valley to create new opportunities for health care education, workforce development and research in one of Texas' medically underserved regions.

As part of UH Health, UH Health Family Care Center will provide integrated primary care and mental health services to the University and its surrounding communities at affordable prices to serve the Third Ward, East End and South Houston. The Household-Centered Care program will give students opportunities to work directly with community caregivers through patient home visits, while the 3rd Ward Place of Wellness offers health screenings, preventive services, education and other resources designed to support long-term health and well-being, according to UH. The College of Optometry will continue to see children and families via outreach programs and clinics across the community.

UH Health also aims to address shortages in health care professionals, providing a pipeline from the university to the workforce. According to the Texas Hospital Association, 64 percent of hospitals in the state are operating with reduced services and fewer beds due to staff shortages.

“Preparing the next generation of health care leaders is one of the most important investments we can make in the future of our state,” Jonathan McCullers, vice president for health affairs at UH and dean of the Tilman J. Fertitta Family College of Medicine at UH, added in the release. “UH Health is ensuring our graduates are equipped to work effectively in today’s complex healthcare environment.”

Additionally, UH shared it is investing $77 million into a 55,000-square-foot medical research facility aimed at boosting interdisciplinary research and scientific discovery.

“Healthcare is no longer delivered in isolation, and complex health challenges require coordinated solutions,” McCullers added. “UH Health allows us to work across disciplines to tackle health challenges, advance research and improve outcomes for patients and our community.”