ExxonMobil, the largest oil and gas producer in the US, is piloting a bitcoin mining project in North Dakota. Exxon has worked with Crusoe Energy Systems in past years. Crusoe’s technology helps oil companies turn used energy, leak gas into a helpful resource.
Like the ConocoPhillips mining scheme in the North Dakota Bucken region, Exxon carries natural gas that would otherwise burn in generators that convert gas into electricity. It is useful for shipping containers full of thousands of bitcoin miners. Exxon launched the pilot in late January 2021 and expanded it in July.
Although Exxon didn’t speak publicly about its activities; The company’s 10-year veteran, on his LinkedIn profile, noted that from February 2019 to January 2022, he offered and led a demonstration of the use of the first successful commercial and technical Bitcoin Proof-of-Work mining; As a viable alternative to a natural gas explosion in an oil patch.
It is worth noting that Exxon’s Bitcoin project is not really about making money with cryptocurrencies. Instead, the company promised to reduce emissions as part of an industry-wide effort to meet higher environmental requirements. In early March, Exxon joined other oil companies in implementing the World Bank’s Zero Routine Explosion by 2030. The project was introduced in 2015. Compared to a constant explosion, the type of crypto-mining arrangement the firm conducts with Crusoe reduces CO2 equivalent emissions by about 63%.
Bitcoin Mining
The problem that Exxon and Conoco discuss has been around for years: What happens when drills accidentally get into natural gas formation? Unlike oil, which can transport to distant destinations, gas supply requires a pipeline. If the drilling site is close to the channel, manufacturers can sell it immediately. However, if the pipe is full or the gas is within 20 miles, Drills often burn it. So there is usually fire coming out of the oil fields. In fact, in addition to the environmental threat, drilling also burns cash.
Entering Bitcoin Mining requires only an Internet connection. It can also carry from anywhere. Because the primary variable value of miners is energy, they are motivated to find the cheapest energy sources.
According to the president of Crusoe, this is just the perfect way to bring this demand to the forefront of energy and solve two problems at once. Cavness said Crusoe has 150 employees; Also works with Canadian oil producer Enerplus, Norway’s Equinor ASA and with Devon Energy, located in Oklahoma City.
North Dakota air quality department permits show that the Crusoe can operate up to 20 portable engines; 11 are currently going to boreholes across the state. The well is powered by two engines mechanized by XTO Energy on Jorgenson Deep Creek’s site, an Exxon oil and gas subsidiary. It is worth noting that the World Bank, in its latest Global Gas Explosion Reduction Partnership report, recognized Crusoe as an innovative melting solution offering.
