Exxon Mobil Corporation is reportedly participating in a pilot program using excess natural gas to power crypto mining machines, according to a recent report citing people familiar with the matter. The report states that the oil giant is collaborating with the firm Crusoe Energy Systems, and that the pilot is reportedly taking place in North Dakota near the Bakken shale basin.
Unnamed Sources Say Exxon Is Controlling Bitcoin Mining Operation In North Dakota Using Torch Gas
On March 24, Bloomberg author Naureen S Malik reported that the largest US oil and gas company Exxon Mobil (NYSE:XOM) is participating in the testing of a bitcoin mining project using excess gas. Malik wrote that “people familiar with the case” told Bloomberg that they could not be named because the information is not public. However, those who asked not to be named said Exxon Mobil is currently partnering with Crusoe Energy Solutions in the state of North Dakota.
Crusoe Energy is a company that offers oil and gas companies a digital solution for flaring natural gas. Natural gas flaring occurs when an oil or gas company processes oil from shale and the oil recovery process releases excess gas that would normally be burned. Some oil companies have found ways to convert the flare gas into usable energy, and Crusoe Energy is helping gas companies use the flare gas to mine digital currencies such as bitcoin (BTC).
Malik’s report says the Exxon Mobil pilot is taking place on an oil rig near the Bakken shale basin. Those familiar with the matter went on to say that the “bitcoin mining servers” used in the pilot program are working on-site. In addition, the anonymous individuals told the Bloomberg reporter that Exxon Mobil is considering adding pilot programs that use flare gas to mine crypto in four different countries.
“Exxon, the largest oil producer in the US, is considering similar pilots in Alaska, the Qua Iboe Terminal in Nigeria, the Vaca Muerta shale field in Argentina, Guyana and Germany,” said one of the people in Malik’s report. However, Malik contacted Crusoe Energy about the story and the reporter said the company “refused to comment”. Crusoe Energy Solutions is based in Denver Colorado and its business system is called “digital flare mitigation technology” or DFM.
Equinor reportedly worked in North Dakota with Crusoe Energy, report further shows Conocophillips sold excess flare gas to mining operations through the Bakken Shale Basin
There have been other times when there has been much speculation about major gas companies mining bitcoin and reports shining a light on specific companies. In August 2020, Arcane Research leaked a number of screenshots from the publicly traded energy company Equinor. According to the report, Norwegian state energy company Equinor also partnered with Crusoe Energy Solutions. Reportedly, Equinor’s partnership with Crusoe in North Dakota was aimed at reducing oil flaring through bitcoin mining.
Numerous oil and gas companies operate in the vicinity of the Bakken shale basin. Although the area is located in North Dakota, it is also located in Montana and the Canadian provinces of Saskatchewan and Manitoba.
In addition to Equinor and Exxon, reports in mid-February indicated that Conocophillips reportedly “sold additional flare gas to bitcoin miners in North Dakota.” According to the CNBC report, Conocophillips was also working on a pilot in the Bakken shale basin area. CNBC author MacKenzie Sigalos wrote that Conocophillips has not disclosed “which bitcoin miner it is selling to, nor how long the pilot project has been going on.” Sigalos did say in the report that a company like Crusoe Energy is often used by the gas company.
Crusoe Energy is not the only company offering gas-to-bitcoin solutions, as the companies Upstream Data and EZ Blockchain also provide gas-to-bitcoin services. Greenidge Generation also uses excess gas to mine bitcoins instead of wasting or burning the energy. EZ Blockchain announced in May last year that the company was partnering with a Texas oil and gas supplier, Silver Energy. At the time, EZ Blockchain said Silver Energy had set up a mining system in Alberta, Canada, a month earlier in February 2021.
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Bakken Basin, Bakken Formation, Bitcoin mining, BTC Mining, Conocophillips, Crusoe Energy, Crusoe Energy Solutions, Crypto, Cryptocurrency, emissions, environment, Equinor, Equinor Flaring, Exxon, Exxon Mobil, Exxon Mobil Corporation, EZ Blockchain, Gas Flaring, Gas Flaring , gas-to-bitcoin mining, Greenidge generation, mining operations, natural gas flaring, North Dakota, report, Silver Energy, upstream data
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Jamie Redman is the news leader at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Exxon Mobil Corp., Bakken Shale Basin Map,
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