Bloomberg released a report confirming that an American oil company called Exxon is working on a gas-to-Bitcoin model that will be used to mine cryptocurrencies, including Bitcoin. It seems that the mining craze is catching up by far.
Exxon launches bitcoin gas mining program
Exxon is set to introduce the Bitcoin Gas Mining Program which will use “excess natural gas that would otherwise be flared from North Dakota oil wells to fuel cryptocurrency mining operations,” according to Bloomberg’s report. People with knowledge of the matter revealed the details but asked to remain anonymous.
Additionally, to complete this operation, Exxon has partnered with Crusoe Energy Systems, a company that provides solutions to prevent natural flaring, one of the biggest problems associated with producing oil from shale. Crusoe Energy Systems offers a digital solution to natural gas flaring.
The pilot is being run in the Bakken Shale Basin in North Dakota by Exxon, where mobile generators are powered using oil, and Bitcoin mining rigs have been set up to operate using energy from these generators. The Bloomberg report added that Exxon launched the project in January 2021.
“The pilot project, which was launched in January 2021 and expanded in July, uses up to 18 million cubic feet of gas per month that would otherwise have been flared – or flared – because there is not enough pipelines. “
What is natural gas flaring?
Natural gas flaring is in common terms a loss of natural gas associated with oil extraction and has been prevalent for over 160 years in the petroleum industry. However, it should be noted that Exxon is not the only company that aims to profit from Bitcoin mining via natural gas flaring. According to a report by CNBCBrent Whitehead and Matt Lohstroh from Texas made $4 million via crypto mining using the same process.