ExxonMobil Uses Natural Gas Waste to Possibly Make Crypto Mining Greener
DailyCoin
Published Mar 28, 2022 04:06AM ET
Updated Mar 28, 2022 04:30AM ET
ExxonMobil Uses Natural Gas Waste to Possibly Make Crypto Mining Greener
For more than a year now, cryptocurrencies that rely on a proof of work (PoW) consensus model to validate transactions have been blasted by media outlets for their negative impact on the environment. That’s because crypto mining operations use a lot of electricity to run the heavy-duty servers and cooling units necessary to solve the complex codes fast and first to confirm blockchain transactions, thereby earning crypto as reward for their efforts and investment.
Many climate change watchers assert that all that energy production and use from cryptocurrencies such as Bitcoin, Dogecoin, and Ethererum creates a carbon foot that’s stepping on the environment and crypto’s reputation.
However, a Bloomberg article on Thursday reported that U.S.-based energy company ExxonMobil (NYSE:XOM) has been running a pilot project since January 2021 using excess natural gas it produces — and can’t ship — as a source to generate electricity for Bitcoin miners. The article further states that ExxonMobil has signed a deal with Crusoe Energy to use the extra natural gas from oil wells in North Dakota to power crypto PoW ops. This beta test crypto project uses 18 million cubic feet of natural gas per month. That amounts to less than half a percent of Exxon’s daily production volume in that state.
From ExxonMobil’s perspective, transporting natural gas requires enough pipelines to safely accommodate the total amount of the supply they capture. The problem is, there aren’t enough transport pipelines and this shortage forces energy producers to burn off — or “flare” — the excess gas or vent it directly into the air. That waste hurts both the environment and the producer’s profits.
From the perspective of the crypto miners, the electricity generated from natural gas produces about half the greenhouse gas emissions that it takes to produce the same amount of electric power using coal.
Gas and oil companies are increasingly under pressure from investors, regulators, and eco-friendly advocates to shrink their carbon footprint to lower negative climate effects. Reducing flared gas waste is a step in that direction. While the fuel is still burned as part of this crypto project, it replaces the usual fuel that the crypto-mining operation would have used otherwise.
According to the report, this project could be expanded to Alaska, as well as outside the U.S. in Germany, Guyana, Argentina, and Nigeria.
EMAIL NEWSLETTER
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
[contact-form-7] You can always unsubscribe with just 1 click.
Get The News You Want
Continue reading on DailyCoin
Written By: DailyCoin
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.