Exxon Mobil Tests Program to Power Crypto Mining with Unused Natural Gas

Exxon Mobil, the largest US oil producer, is testing a pilot program to use leftover natural gas to power cryptocurrency-mining operations on site. The initiative, launched in January 2021, utilizes gas from the Bakken shale basin in North Dakota to power bitcoin mining servers. This program is part of a growing trend among crypto miners seeking alternative, cleaner-burning sources of energy. Exxon Mobil's partnership with Crusoe Energy Systems aims to reduce waste by utilizing gas that would otherwise be burned off while drilling for oil. The company is now considering expanding the program to more locations, including Germany, Guyana, Argentina, and Nigeria.

Key Takeaways:

• Exxon Mobil has partnered with Crusoe Energy Systems to use leftover natural gas to power crypto mining operations on site, beginning in January 2021.
• The pilot program utilizes 18 million cubic feet of gas per month from the Bakken shale basin in North Dakota to power bitcoin mining servers.
• Exxon Mobil is considering expanding the program to more locations, including Germany, Guyana, Argentina, and Nigeria.
• This initiative is similar to a move made by competitor ConocoPhillips, which is selling excess natural gas to crypto miners in North Dakota instead of burning it.
• Crypto miners are seeking alternative, cleaner-burning options to power their mining operations, which draw vast amounts of energy and often from dirtier coal-fired power plants.
• Shale oil production results in a significant amount of excess natural gas, much of which is usually burned off.

Statistics:

• 18 million cubic feet of gas per month is being used to power crypto mining operations.
• January 2021 marks the beginning of Exxon Mobil's pilot program to use leftover natural gas for crypto mining.
• The program is now being considered for expansion to four additional countries, including Germany, Guyana, Argentina, and Nigeria.
• People are drawn to the anonymity and accessibility of cryptocurrency-based investments.
• Corporation seeking alternative energy sources to create a cleaner-burning gas option for future utilization.

Sources:

• (https://markets.businessinsider.com/stocks/xom-stock)
• (https://www.bloomberg.com/news/articles/2022-03-24/exxon-considers-taking-gas-to-bitcoin-pilot-to-four-countries)
• (https://markets.businessinsider.com/news/currencies/conocophillips-sells-natural-gas-north-dakota-bitcoin-miners-bakken-shale-2022-2)
• (https://www.businessinsider.com/exxon-mobil-natural-gas-power-bitcoin-mining-bakken-shale-crypto-2022-3)