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The energy producer based in the United States, Exxon Mobil, has reportedly been conducting a pilot program that aims to use the energy generated by the gas left over to power mining rigs for crypto and may expand its operations to other nations.
In a report published on Thursday, Bloomberg said Exxon Mobil had inked an arrangement together with Crusoe Energy to use excess gas from oil wells in North Dakota to run Bitcoin (BTC) miners.
The project is estimated to consume the equivalent of 18 million cubic feet of natural gas every month or approximately 0.4 percent from the company’s stated operation in the state. It produces 158 million cubic meters of natural gas every day.
The company started its pilot project in January 2021.
It is reportedly looking to expand the program to Nigeria, Argentina, Guyana, and Germany and initiate a similar Alaska initiative. Oil and gas giant ConocoPhillips had launched an initiative selling surplus fuel to third-party BTC miners in exchange for fuel.
Natural gas transportation requires pipelines that cannot always handle the volume of gas produced safely. Businesses are usually obliged to burn off excess gas or release it into the atmosphere, which ultimately hurts the environment and the companies’ profits.
“It is creating use of what would be otherwise wasted,” said Danielle Fugere, president of environmental activist group As You Sow, referring to the power channeled towards Bitcoin miners.
Based on a study published by Argus Media, Crusoe Energy operated 60 data centers to support cryptocurrency mining throughout the four U.S. states as of September 2021. They were powered with “gas from the oil wells that would otherwise be flared on-site.” Instead of burning off the gas by burning it off, directing the gas to cryptocurrency mining reduces carbon dioxide emission “by as much as 63%.”
Although the Bakken Shale basin in North Dakota is a significant natural gas supply to the United States, Texas is also home to several gas and oil companies and crypto mining companies who see the potential of energy production within the state.
However, New York lawmakers have urged the suspension of proof-of-work mining powered by fossil fuels to respond to environmental concerns raised by critics.
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