ExxonMobil uses excess natural gas for crypto mining: Report

ExxonMobil, an energy producer based in the United States, has been running a pilot program to use excess gas to power crypto mining machines. It may also be expanding to four countries.

Bloomberg reported on Thursday that ExxonMobil and Crusoe Energy had signed a deal to use North Dakota’s oil wells to power Bitcoin ( Bitcoin) miners. The project is estimated to use 18 million cubic yards of natural gas per month, which is roughly 0.4% of the state’s reported operations. It also produces 158 million cubic foot of natural gas every day.

In January 2021, the company launched the pilot program. It is now considering expanding to Nigeria and Argentina, Guyana, and Alaska. Cointelegraph reported that ConocoPhillips, an oil and gas giant, was operating a program selling excess gasoline to third-party BTC miners as fuel.

Natural gas transport requires pipelines that can safely carry the required amount of natural gas. Companies often have to either burn excess gas or let it out into the atmosphere, which can lead to environmental damage and loss of profit margins.

Danielle Fugere (president of As You Sow), an environmental shareholder advocacy group, said that “it is making use of what would otherwise be wasted.” She was referring to the energy diverted to Bitcoin miners.

According to Argus Media, Crusoe Energy ran 60 data centres for crypto mining in four U.S. States. These centers were powered by “gas extracted from oil wells that would otherwise have been flared on site.” This reportedly reduces carbon dioxide equivalent emissions “by as high as 63%.”

Similar: Are you stranded? Big Oil could use Bitcoin miners to solve its gas problem

The Bakken Shale Basin in North Dakota is a major source for natural gas, but Texas also has many oil and gas companies. New York legislators have suggested suspending proof of work mining using fossil fuels to address environmental concerns.

Opinion writer on 7trade7