Brilliant Idea! ConocoPhillips Sells Wasted Gas For Bitcoin Mining Energy

Burning gas that has been wasted so far can be used for Bitcoin mining energy. (photo: doc. unsplash)

JAKARTA – The international oil and gas giant, ConocoPhillips, is now starting to dive into Bitcoin mining as a way to get rid of the wasteful practice of burning.

According to a report from CNBC, the company is currently operating a pilot scheme in the oil-rich Bakken region of North Dakota. Instead of burning the excess gas, a byproduct of oil drilling known as flaring, is sold by the company to Bitcoin miners or third parties to use as fuel.

Talking about the environmental impact of “routine burning”, a representative from the company stated that the decision to move to Bitcoin mining reflects the company’s overarching goal of reducing and “ultimately eliminating routine burning as soon as possible, by 2030 at the latest.”

In a slide from the ConocoPhillips 2021 presentation, the company stated that it has a “sustainable focus” on ensuring that gas capture projects achieve zero routine flaring by 2025.

Bitcoin mining offers a unique and profitable solution to the problem of routine burning, which occurs when a mining company accidentally crashes into a natural gas formation while drilling for oil.

While oil can be siphoned off and collected at any location, harvesting natural gas requires a pipeline infrastructure. If miners strike the gas at a significant distance from the pipeline, the company is forced to burn or "burn" the gas, which is ultimately an unprofitable and environmentally harmful procedure.

Instead of letting gas go to waste, Bitcoin miners place shipping containers or trailers filled with crypto mining equipment near oil wells and divert the gas to generators that power the equipment.

ConocoPhillips did not disclose which Bitcoin miners had purchased the gas, or how long the project's preliminary trials had been going on.

Another US-based oil and gas explorer, Crusoe Energy, has also leveraged Bitcoin mining as a way to profitably reduce emissions. Around 60 data centers and Bitcoin mining units are now powered by natural gas diverted in their oil fields. According to a report from Argus media, Crusoe Energy's technology reduces CO2 equivalent emissions by 63% when compared to ordinary routine combustion.

In response to the widespread criticism of Bitcoin mining that usually arises from environmental concerns, miners are becoming increasingly concerned with finding new ways to utilize more sustainable energy methods.

As reported by Cointelegraph, the Bitcoin Mining Council forecasts a sustainable energy mix of 58.5% for the global industry in the fourth quarter of 2021. Miners in Norway are even using waste heat to dry wood. It may also be used for energy in mining Bitcoin.