TD₿: On Turning Stranded Energy into Bitcoin by Chase Lochmiller with Matt Walsh
TL;DR Bitcoin mining is another tool that helps all energy producers operate more efficiently.
Hey Bitcoiners,
A couple of months ago, Bitcoin mining made the news when the largest U.S. oil & gas producer in the world, Exxon Mobil, announced its decision to expand its oil-to-bitcoin project to four new countries.
The Bakken Crypto Pilot program was launched in January 2021, in agreement with Bitcoin mining company Crusoe Energy Systems, to take natural gas from oil wells in the Bakken shale basin and mine bitcoin with it.
The pilot used up to 18 million cubic feet of gas per month before being expanded in July 2021, and now it’s being expanded again to four more countries.
This news was notable because Exxon Mobil does not expand pilot programs if they are not working and they don’t see promise in them.
This pilot’s expansion shouldn’t surprise Bitcoiners who understand the symbiotic relationship that exists between oil & gas producers and Bitcoin miners.
Bitcoin mining can allow these producers to make stranded energy profitable while reducing their carbon footprint by reducing the amount of gas they are flaring. This has become even more important as producers are increasingly under pressure from regulators and environmental groups to reduce their greenhouse gas emissions.
Chase Lochmiller of Crusoe Energy Systems sat down with Matt Walsh in this podcast to discuss the intersection of Bitcoin mining and energy and thoroughly summarized the incentives at play here (09/30/2020).
True win-win situations are a rarity in this world, but with Bitcoin mining and energy producers, it seems to be one of those perfect matches made in heaven.
Tick tock next block,
Cory Klippsten
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Quote of the Day
“Mining is literally the same business as oil and gas. The goal is to be the lowest cost producer. Instead of hydrocarbons you're producing terahashes, and instead of selling product for dollars you're selling for bitcoin.” - Justin Ballard, CEO and Co-Founder of JAI Energy
Meme of the Day