- ExxonMobile launched a pilot program in January 2021 that uses excess natural gas to power Bitcoin mining equipment.
- The oil company may be considering expanding the scope of the program to countries such as Germany, Nigeria and Argentina.
ExxonMobil, one of the largest oil companies in the world, could be running a pilot project to mine Bitcoin with gas that would otherwise go to waste.
According to the report of Bloomberg, the pilot project is part of an agreement with Crusoe Energy Systems, a company that provides solutions for burning natural gas, and seeks to give a purpose to excess natural gas; at the moment, specifically from the oil wells of North Dakota.
It is important to keep in mind that the Bitcoin blockchain uses the Proof of Work consensus and therefore requires a considerable amount of energy to function. That is, ExxonMobil seeks to use the gas, which would otherwise go to waste, to make a profit by mining Bitcoin.
Waste of natural gas? Bitcoin is the solution
In the oil industry, natural gas burning is frequently used, because, in general, when drilling a well, this resource also appears. So the problem is that if you don’t know what to do with the gas, it usually goes to waste.
In fact, according to world Bank, Approximately 400 million tons of CO2 are produced annually in the world as a result of the burning of excess gas in the fields.
So if burning gas creates so much CO2, why is it done? Well, because releasing the gas into the atmosphere in its natural state would have a greater impact on the environment. Therefore, the ideal is that this natural gas is channeled for one use. And this is precisely where Bitcoin comes in.
According to the Bloomberg report, ExxonMobil seeks to find a solution to excess natural gas so that, instead of burning it, it powers Bitcoin mining equipment.
Make a profit from what was a waste
Waste is not good for any business, so companies are always looking for solutions that allow them to capitalize on it.
“We continually evaluate emerging technologies aimed at reducing flaring volumes at our operationsSarah Nordin, a spokeswoman for ExxonMobile, told Bloomberg.
However, Nordin declined to comment on “rumors and speculation about the mining project.” According to Bloomberg, the rest of the spokespersons decided to remain anonymous since it is information that has not yet been made official.
Thus, according to the report, the pilot program takes gas from an oil well in the Bakken Formation within the Williston Basin that is located along the border between the United States and Canada. This will be used to run mobile generators that will power mining equipment on site.
As reported, the project uses 18 million cubic feet of natural gas per month.
In theory, ExxonMobile launched the pilot program in January 2021 and is already considering expanding to Nigeria, Argentina, Guyana and Germany.
Considering that ExxonMobile would not be the first company to launch such a program, could Bitcoin mining help reduce the carbon footprint of natural gas flared and vented?
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