According to Bloomberg, oil giant ExxonMobil is trying to use waste resources to switch to bitcoin mining.
Exxon Mobil has signed a deal with Crusoe Energy System to use excess natural gas from its North Dakota oil wells to power bitcoin mining operations. The project was launched in January last year, and Exxon is already looking to build similar projects in Alaska, Nigeria, Argentina, Guyana and Germany.
The plan, which uses natural gas that would otherwise be wasted, recycles 18 million cubic feet per month, or about 0.4 percent of the company’s reported business in the state, the report said.
In fact, oil and gas production is being tested by carbon emissions due to climate change issues, and most energy companies are starting to work with bitcoin mining companies to use this potentially wasted energy, rather than simply wasting it.
Last month, oil and gas exploration and production giant ConocoPhillips (COP) was pumping excess natural gas from a project in its Bakken region in North Dakota to provide the necessary power for bitcoin mining operations.
“ConocoPhillips currently has a Bitcoin pilot project in Bakken, where gas that would otherwise be flared is routed to a third-party owned and managed Bitcoin mining farm,” a ConocoPhillips spokesman said.
Ethan Vera, CFO and COO of cryptocurrency investment firm Viridi Funds, commented in an interview that “While ConocoPhillips is one of the major energy companies that has publicly announced its entry into Bitcoin mining, there are many others. Other energy companies have already started the process of setting up small test sites. If the economics of Bitcoin mining and total mining revenue in dollar terms grow, many large energy producers will look to enter the space in a larger way.”
It is undeniable that the practice of using such waste energy to mine Bitcoin is not new.
In March 2021, Norwegian energy service provider Aker Solutions announced the launch of Seetee, a cryptocurrency investment company, aimed at exploring the Bitcoin ecosystem. Seetee plans to build a mining operation to transfer stranded power to various assets.
Earlier in 2020, the international energy giant Equinor ASA decided to cooperate with Crusoe Energy Systems (Crusoe Energy Systems) to convert the natural gas burned and discharged into the atmosphere in the North Dakota oilfields into electricity, and use and utilize the electricity to generate electricity. Coin mining.
However, it is worth noting that due to the tense geopolitical situation, the cost of energy such as oil, natural gas, and electricity has soared. Analysts believe that this may lead to a major reshuffle within the Bitcoin mining industry. Josh Olszewicz, director of research at crypto-asset investment firm Valkyrie Funds, said the least efficient bitcoin miners will suffer, and if electricity costs continue to rise, they won’t be able to make as much profit as before.
According to a Bloomberg analysis, Bitcoin’s profit margin has fallen from 90% to around 70% as the price of bitcoin remains 40% below its November high and the Russian-Ukrainian conflict has pushed up energy prices. As profit margins in the bitcoin mining industry continue to shrink, energy companies that don’t need to buy electricity from outside have gained an edge over their competitors. Energy companies such as Beowulf Mining, CleanSpark, Stronghold Digital Mining and others are becoming major players in the cryptocurrency space.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/energy-giant-btc-mining-potential-is-rising/
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